Toyota is the world’s most valuable automotive brand, overtaking Mercedes-Benz and Tesla, according to the latest Automotive Industry 2025 report by leading brand valuation consultancy Brand Finance.
Toyota’s brand value surged by 23% to USD64.7 billion, driven by strong sales and a strategic focus on hybrid vehicles. While many brands struggle with the slower-than-expected transition to fully electric vehicles (EVs), Toyota’s emphasis on hybrids has resonated with consumers seeking fuel efficiency without the infrastructure challenges of EV adoption. The brand’s ability to optimise production and maintain profitability despite rising material costs has reinforced its leadership, while AI-driven supply chain management and a strong product mix have contributed to sustained growth.
Tesla’s brand value has fallen by 26% to USD43.0 billion, pushing it down to third place in the ranking. This decline is driven by missed revenue expectations, increased competition in the EV sector, and price cuts across key markets, particularly in China. The brand also faces challenges from shifting political dynamics, including the anticipated rollback of EV subsidies in the US under the Trump administration.
Mercedes-Benz’s brand value has also declined, down 11% to USD53.0 billion. The German automaker missed revenue targets and revised profit margin expectations twice in 2024, as a slowdown in the Chinese market impacted its overall financial performance.
Ferrari has the fastest growing brand value in the automobile sector, increasing 36% to USD14.4 billion. The brand’s strategy of maintaining exclusivity, high-margin models, and strong global demand has driven its success. Ferrari continues to expand its brand influence through high-profile Formula 1 sponsorship, premium lifestyle partnerships, and its focus on hybrid technology as it transitions towards carbon neutrality by 2030. The brand’s leadership has also been a key driver of success, with CEO Benedetto Vigna ranked 4th in Brand Finance’s Brand Guardianship Index - making him the highest-ranked CEO in the auto sector. Ferrari’s cautious approach to the Chinese market, capping its exposure at 10%, has also helped insulate the brand from fluctuations in luxury spending, ensuring profitability remains strong even amid economic downturns.
Alex Haigh, Managing Director, Asia Pacific, commented:
"The automotive industry is at a crossroads. Global EV sales continue to rise, while growth has slowed in key markets like the US and Europe. Policy uncertainty, shifting regulations, and supply chain challenges are reshaping strategies across the industry. Meanwhile, China has asserted itself as the world’s leading car exporter, leveraging its dominance in EV battery production and cost-competitive pricing to gain market share. Traditional automakers must strike a balance between maintaining profitability today and investing in the technology that will define the future of mobility.”
Brand Finance is also releasing new research on the auto components sector, an industry challenged by job cuts and semiconductor shortages. Bosch retains its position as the most valuable brand, with a brand value of USD7.3 billion. The brand focuses on intelligent tyre technology, automotive chip standardisation, and regional expansion in India.