BYD strengthens its dominance in China’s auto sector with a remarkable 16% increase in brand value
BEIJING, 13 February 2025 – Toyota is the world’s most valuable automotive brand, overtaking Mercedes-Benz and Tesla in the Automotive Industry 2025 report, according to a new report from Brand Finance, the world's leading brand valuation consultancy.
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.
BYD’s brand value surged by 16% to USD14 billion, fuelled by robust global sales, cutting-edge technology, and favourable market dynamics. The company’s manufacturing capabilities outpaced Tesla’s, reinforcing its position as China’s largest EV manufacturer and a formidable global challenger. This growth highlights BYD’s expanding influence in the electric vehicle market, as it continues to strengthen its competitive edge and lead the way in sustainable transportation.
Intensifying competition from Chinese automakers, combined with price cuts in the region has put mounting pressure on Tesla, contributing to a 26% drop in brand value to USD43 billion, pushing it to third place in the global ranking. Further uncertainty looms with shifting political dynamics, including potential changes to EV subsidies in the US.
Mercedes-Benz’s performance has also been influenced by China’s evolving market dynamics, leading to an 11% drop in brand value to USD53 billion. As the automotive landscape shifts, the German automaker adjusted its profit margin expectations twice in 2024 and recalibrated its strategy to stay competitive in a rapidly changing industry.
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.
Scott Chen, Managing Director of Brand Finance, China, commented:
"The global automotive industry is at a critical stage of transformation. Despite the continuous growth in global electric vehicle sales, the growth rate in major markets such as the United States and Europe has shown signs of slowing down. Policy uncertainties, regulatory changes, and supply chain challenges are reshaping the strategic landscape of the entire industry. Meanwhile, China has rapidly emerged as a leading global automotive exporter, successfully capturing a significant market share by leveraging its dominant position in electric vehicle battery production and competitive cost pricing strategies. Traditional automakers must strike a balance between maintaining their current profitability and investing in technologies that shape the future of mobility.
The general decline in BSI indicates that brand building is not a one-off effort but a continuous process that requires ongoing investment and dynamic adjustment. In the future, for Chinese auto brands to stand out in the fierce market competition, they must pay more attention to technological innovation, create brand differentiation and enhance consumer experience, so as to reshape brand value, enhance brand strength, and ultimately achieve higher profit margins and long-term sustainable development.
The path for Chinese auto brands to go global should particularly focus on the core task of "how to tell the story of Chinese auto brands well" in order to maximise brand value. This requires a brand team that is always in tune with market trends, scientifically and efficiently promotes brand strategies, and has a high level of internationalisation."
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.
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance, Brand Finance evaluates the strength of brands and quantifies their financial value to help organisations make strategic decisions.
Headquartered in London, Brand Finance operates in over 25 countries. Every year, Brand Finance conducts more than 6,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.
Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on 6,000 brands, surveying more than 175,000 respondents across 41 countries and 31 industry sectors. By combining perceptual data from the Global Brand Equity Monitor with data from its valuation database — the largest brand value database in the world — Brand Finance equips ambitious brand leaders with the data, analytics, and the strategic guidance they need to enhance brand and business value.
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance, compliant with ISO 20671.
Brand Finance is a regulated accountancy firm and a committed leader in the standardisation of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.
Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.
Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.
Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.
Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.
The steps in this process are as follows:
1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.
2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.
3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.
4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.
5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.
6 Apply the royalty rate to the forecast revenues to derive brand revenues.
7 Discount post-tax brand revenues to a net present value which equals the brand value.
Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.
The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.
