Auto & Tires 2018 The annual report on the world’s most valuable automobile, auto component & tire March 2018 Foreword.

What is the purpose of a strong : to attract customers, to build loyalty, to motivate staff? All true, but for a commercial brand at least, the first answer must always be ‘to make money’.

Huge investments are made in the design, launch, and ongoing promotion of brands. Given their potential financial value, this makes sense. Unfortunately, most organisations fail to go beyond that, missing huge opportunities to effectively make use of what are often their most important assets. Monitoring of brand performance should be the next step, but is often sporadic. Where it does take place, it frequently lacks financial rigour and is heavily reliant on qualitative measures, poorly understood by non-marketers.

David Haigh As a result, teams struggle to communicate the value of their work and CEO, Brand Finance boards then underestimate the significance of their brands to the business. Sceptical finance teams, unconvinced by what they perceive as marketing mumbo jumbo, may fail to agree necessary investments. What marketing spend there is, can end up poorly directed as marketers are left to operate with insufficient financial guidance or accountability. The end result can be a slow but steady downward spiral of poor communication, wasted resources, and a negative impact on the bottom line.

Brand Finance bridges the gap between marketing and finance. Our teams have experience across a wide range of disciplines from market research and visual identity to tax and accounting. We understand the importance of design, advertising, and marketing, but we also believe that the ultimate and overriding purpose of brands is to make money. That is why we connect brands to the bottom line.

By valuing brands, we provide a mutually intelligible language for marketing and finance teams. Marketers then have the ability to communicate the significance of what they do, and boards can use the information to chart a course that maximises profits. Without knowing the precise, financial value of an asset, how can you know if you are maximising your returns? If you are intending to license a brand, how can you know you are getting a fair price? If you are intending to sell, how do you know what the right time is? How do you decide which brands to discontinue, whether to rebrand and how to arrange your ? Brand Finance has conducted thousands of brand and branded business valuations to help answer these questions.

Brand Finance’s research revealed the compelling link between strong brands and stock market performance. It was found that investing in highly-branded companies would lead to a return almost double that of the average for the S&P 500 as a whole.

Acknowledging and managing a company’s intangible assets taps into the hidden value that lies within it. The following report is a first step to understanding more about brands, how to value them and how to use that information to benefit the business.

The team and I look forward to continuing the conversation with you.

Brand Finance Auto & Tires March 2018 3. About Brand Finance. Contents.

Brand Finance is the world’s leading independent Foreword 3 brand valuation and strategy consultancy. About Brand Finance 4 Brand Finance was set up in 1996 with the aim of ‘bridging the gap between marketing and finance’. Contact Details 4 For more than 20 years, we have helped companies and organisations of all types to connect their brands Definitions 6 to the bottom line. Auto 100 Executive Summary 8 We pride ourselves on four key strengths: • Independence Auto Components 10 14 • Technical Credibility • Transparency Tires 10 16 • Expertise. Auto 100 Full Table 18 Brand Finance puts thousands of the world’s biggest Methodology 20 brands to the test every year, evaluating which are the strongest and most valuable. Understand Your Brand’s Value 21

For more information, please visit our website: Consulting Services 22 www.brandfinance.com Communications Services 23

Contact Details.

For business enquiries, For further information on Brand Finance®’s services and valuation experience, please contact: please contact your local representative: Richard Haigh Managing Director Country Contact Email Address [email protected] Asia Pacific Samir Dixit [email protected] +65 906 98 651 Australia Mark Crowe [email protected] +61 282 498 320 Canada Charles Scarlett-Smith [email protected] +1 647 3437 266 For media enquiries, Caribbean Nigel Cooper [email protected] +1 876 8256 598 please contact: Scott Chen [email protected] +86 1860 118 8821 East Africa Jawad Jaffer [email protected] +254 204 440 053 Konrad Jagodzinski Germany Holger Mühlbauer [email protected] +49 1515 474 9834 Communications Director India Savio D’Souza [email protected] +44 207 389 9400 [email protected] Indonesia Jimmy Halim [email protected] +62 215 3678 064 Ireland Simon Haigh [email protected] +353 087 6695 881 Italy Massimo Pizzo [email protected] +39 230 312 5105 For all other enquiries, Japan Jun Tanaka [email protected] +8190 7116 1881 please contact: Mexico & LatAm Laurence Newell [email protected] +52 1559 197 1925 [email protected] Middle East Andrew Campbell [email protected] +971 508 113 341 Nigeria Babatunde Odumeru [email protected] +234 012 911 988 +44 (0)207 389 9400 Romania Mihai Bogdan [email protected] +40 728 702 705 Spain Teresa de Lemus [email protected] +34 654 481 043 South Africa Jeremy Sampson [email protected] +27 828 857 300 linkedin.com/company/ Sri Lanka Ruchi Gunewardene [email protected] +94 114 941 670 brand-finance Turkey Muhterem Ilgüner [email protected] +90 216 3526 729 UK Richard Haigh [email protected] +44 207 389 9400 USA Laurence Newell [email protected] +1 917 794 3249 facebook.com/brandfinance Vietnam Lai Tien Manh [email protected] +84 473 004 468

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4. Brand Finance Auto & Tires March 2018 Brand Finance Auto & Tires March 2018 5. Definitions.

Definitions.

Brand Value Brand Strength

+ Enterprise Value Brand Strength is the efficacy of a brand’s Each brand is assigned a Brand Strength Index (BSI) The value of the entire enterprise, made performance on intangible measures, relative to its score out of 100, which feeds into the brand value up of multiple branded businesses. competitors. calculation. Based on the score, each brand is assigned a [Volkswagen Group] corresponding rating up to AAA+ in a format similar to a Where a company has a purely mono- In order to determine the strength of a brand, we look at branded architecture, the ‘enterprise value’ credit rating. is the same as ‘branded business value’. Marketing Investment, Stakeholder Equity, and the impact Enterp of those on Business Performance. Analysing the three brand strength measures helps inform rise Va managers of a brand’s potential for future success. lue + Branded Business Value The value of a single branded business Bra operating under the subject brand. nded Bu si [Bentley] A brand should be viewed in the context of Marketing Widely recognised factors deployed by marketers to create and ne ss the business in which it operates. Brand Investment market share. V a Finance always conducts a branded Bran lu d C e business valuation as part of any brand on tr valuation. We evaluate the full brand value ib u t chain in order to understand the links io n between marketing investment, brand- Stakeholder Perceptions of the brand among different stakeholder groups, with customers tracking data, and stakeholder behaviour. Equity being the most important.

+ Brand Contribution The overall uplift in shareholder value Brand Quantitative market and financial measures representing the success of the Value that the business derives from owning Business the brand rather than operating a Brand Strength Index Performance brand in achieving price and volume premium. [Bentley] generic brand.

The brand values contained in our league tables are those of the potentially transferable brand assets only, making ‘brand contribution’ a wider concept. An Marketing Investment assessment of overall ‘brand contribution’ to • A brand that has high Marketing Investment but low Stakeholder Equity may be on a a business provides additional insights to path to growth. This high investment is likely to lead to future performance in Stakeholder Equity which would in turn lead to better Business Performance in the future. help optimise performance. Investment • However, high Marketing Investment over an extended period with little improvement in Stakeholder Equity would imply that the brand is unable to shape customers’ preference. + Brand Value The value of the trade mark and Stakeholder Equity associated marketing IP within the • The same is true for Stakeholder Equity. If a company has high Stakeholder Equity, it is branded business. Equity likely that Business Performance will improve in the future. [Bentley] • However, if the brand’s poor Business Performance persists, it would suggest that the Brand Finance helped to craft the brand is inefficient compared to its competitors in transferring stakeholder sentiment internationally recognised standard on to a volume or price premium. Brand Valuation – ISO 10668. It defines brand as a marketing-related intangible Performance Business Performance asset including, but not limited to, names, • Finally, if a brand has a strong Business Performance but scores poorly on Stakeholder terms, signs, symbols, logos, and designs, Equity, it would imply that, in the future, the brand’s ability to drive value will diminish. intended to identify goods, services or • However, if it is able to sustain these higher outputs, it shows that the brand is entities, creating distinctive images and particularly efficient at creating value from sentiment compared to its competitors. associations in the minds of stakeholders, thereby generating economic benefits.

6. Brand Finance Auto & Tires March 2018 Brand Finance Auto & Tires March 2018 7. Executive Summary.

Executive Summary.

distinctive styling – a brand strategy that contrasts with Top 10 Most Valuable Brands the very ordinary-looking Leaf by (down 22% to US$19.4 billion). Porsche (up 54% to US$19.1 billion) Rank 2018: 1 2017: 3 has successfully launched a new hybrid model, the BV 2018: $43,930m 1 +24% Panamera 4 E-Hybrid focused on both sustainability BV 2017: $35,544m and high performance, with the future promise of Brand Rating: AAA- further sports models following on from the Porsche 918 Spyder. Rank 2018: 2 2017: 1 BV 2018: $43,701m 2 -6% Tesla (up 106% to US$5.7 billion) has also recorded BV 2017: $46,255m extremely strong brand value growth over the last year, Brand Rating: AAA- rising from 30th to 19th place amongst automobile brands globally. Tesla’s brand value has been built Rank 2018: 3 2017: 2 BV 2018: $41,790m upon the premium styling of their distinctive vehicles 3 +6% BV 2017: $39,335m and a very growth-focused corporate vision which aims Brand Rating: AAA to bring a more affordable model to market very soon. However, doubts exist whether Tesla has the Rank 2018: 4 2017: 4 manufacturing capability in the short-term to satisfy BV 2018: $33,670m 4 +35% consumer demand in terms of both volume and quality BV 2017: $25,014m to match the brand expectations that they have Brand Rating: AAA created. By contrast, some industry incumbents have built their brands with over a century of experience in Rank 2018: 5 2017: 7 delivering on customer expectations. BV 2018: $22,132m 5 +4% BV 2017: $21,318m Mercedes-Benz Takes Pole Position Brand Rating: AAA- Mercedes-Benz has overtaken Toyota and BMW to Mercedes-Benz invented the Brand Value Change 2017-2018 (%) Rank 2018: 6 2017: 5 BV 2018: $19,376m claim pole position as the world’s most valuable 6 -22% automobile, and is now leading BV 2017: $24,768m automobile brand, following 24% year-on-year growth Aston Martin 268% to US$43.9 billion. Mercedes-Benz’s surge in brand Brand Rating: AA+ the industry with a brand BYD 211% value was driven largely by a big increase in forecast 124% revenue as car sales increased by 9.9% to 2.3 million strategy focused on re- Rank 2018: 7 2017: 9 Tesla 106% BV 2018: $19,055m vehicles. 7 +54% inventing the automobile. Their Jaguar 105% BV 2017: $12,396m success has been driven by the Smart 103% Brand Rating: AAA Slipping to second was Toyota (down 6% to US$43.7 98% billion), just ahead of third-ranked BMW (up 6% to introduction of a new Foton 90% Rank 2018: 8 2017: 6 US$41.8 billion). Toyota faces a challenging brand Renault Trucks 82% BV 2018: $17,294m generation of vehicles led by 8 -23% landscape, largely due to a weaker position in China as Land Rover 64% BV 2017: $22,432m consumers in that market have shied away from the their renewed foray into SUVs -24% GMC Brand Rating: AAA- Japanese manufacturer and in favour of more and smooth evolution of new -24% aspirational brands, such as Mercedes-Benz. -25% Skoda Rank 2018: 9 2017: 8 BAIC BV 2018: $14,951m technologies to move away -33% 9 +19% EVs Drive Future Brand Expectations from traditional internal -34% Mitsubishi BV 2017: $12,546m -35% SSangYong Brand Rating: AAA- combustion engines. -42% JMC Both Toyota and BMW have made efforts to reshape -52% Vauxhall Rank 2018: 10 2017: 10 the traditional internal combustion engine a David Haigh BV 2018: $12,822m -52% Wuling 10 +11% cornerstone of their respective brands. Toyota’s Prius CEO, Brand Finance BV 2017: $11,525m -67% Opel and BMW’s electric i3 and i8 vehicles both have very Brand Rating: AAA-

8. Brand Finance Auto & Tires March 2018 Brand Finance Auto & Tires March 2018 9. Executive Summary.

Brand Value Over Time Chinese Brands in Hot Pursuit Top 10 Strongest Brands

50 Outside the top 10, a number of Chinese brands are BSI Score enjoying remarkable brand value growth while focusing on the Chinese domestic market, which is now the 91.5 40 world’s largest. This includes Haval (up 124% to US$6.8 billion), (up 62% to US$6.0 billion), BYD (up 211% to US$3.4 billion), Baojun (up 98% to US$1.8 BSI Score billion), and Foton (up 90% to US$1.0 billion). In recent 30 weeks, Geely has purchased 9.7% of Daimler, seeking 87.3 to work on electric cars with the German conglomerate, while the German government said it would keep a BSI Score 20 monitor on the relationship. Brand Value (USD bn) Brand Value The Chinese brands have succeeded in delivering 86.9 10 strong value, but to date, only for the Chinese mass market. Outside China, the brands are largely BSI Score unknown, and within the Chinese premium and luxury 0 segments, foreign brands such as Mercedes-Benz 2012 2013 2014 2015 2016 2017 2018 continue to dominate. Chinese brands are expected to 85.6 Year aquire Western brands in order to leverage their brand strength internationally, and to use their Chinese- BSI Score focused brands to innovate low cost vehicles for their large domestic market. Brand Value by Country 85.3

BSI Score 85.2 Colour Country Brand Value % of total (USD bn) BSI Score Germany 159.9 34% Japan 126.6 27% 84.1 United States 59.0 12% China 31.9 7% BSI Score United Kingdom 26.6 6% France 17.6 4% 83.3 Others 54.7 11% Total 476.4 100% BSI Score 82.9

BSI Score 82.8

10. Brand Finance Auto & Tires March 2018 Brand Finance Auto & Tires March 2018 11. Executive Summary.

Top 10 Most Valuable Portfolios SUVs Draw Attention first profit for a decade, boosted by the Brexit-related devaluation of the British Pound. This allowed the At the same time, as manufacturers are producing a Aston Martin is roaring back into British manufacturer to continue to deliver a high- Rank 2018: 1 2017: 1 whole range of new environmentally-friendly models, BV 2018: $75,751m quality product, but at a lower cost to international 1 +4% the top ranks of luxury car BV 2017: $72,681m sales of larger sports utility vehicles (SUVs) have consumers. generated a spike in revenues for many brands, makers. The brand is famed for Brand Rating: AAA- leading to SUVs now representing 34% of all new car sales to almost 28 million units globally. This includes offering a high-end product, and Independence and Cooperation Rank 2018: 2 2017: 3 BV 2018: $54,659m Mercedes-Benz (805,000 SUVs sold globally in 2017 2 +20% respected for the quality they BV 2017: $45,557m across several models) and Nissan (which sold over Across the automobile industry, different corporations Brand Rating: AA+ 810,000 X-Trail model cars alone). deliver. Exploiting one of the have implemented radically different ownership arrangements. Ultra-premium brands such as Ferrari strongest and broadest series of Rank 2018: 3 2017: 2 The high-end SUV market is booming with a number of (up 6% to US$6.5 billion) and Aston Martin have, over BV 2018: $52,800m planned model launches in the the last decade, become independent from their 3 -11% new product launches by luxury brands last year, BV 2017: $59,647m former ownership by huge conglomerates. At the including the Audi Q5 and Alfa Romeo Stelvio. In the sector, Aston Martin is now a Brand Rating: AAA- near future, premium brands Rolls Royce and Aston same time, however, increased consolidation and darling for investors and a brand cooperation elsewhere in the automobile industry is Martin are looking to cash in with the increased Rank 2018: 4 2017: 4 popularity of SUVs, as they seek to launch the Cullinan demonstrated through the growing Renault-Nissan- BV 2018: $46,206m that Britain should be proud of. 4 +3% and DBX respectively in 2019. Mitsubishi alliance, and the decision by Chinese BV 2017: $44,928m David Haigh carmaker Geely to purchase a stake in Daimler. Brand Rating: AAA CEO, Brand Finance Aston Martin Brand Roars Both are succeeding – the independence of Ferrari Rank 2018: 5 2017: New allows it to leverage its unique brand attributes to 5 BV 2018: $24,553m Aston Martin’s brand value grew with remarkable speed cement itself as a global icon of the industry, while (up 268% to US$3.6 billion) as it took the chequered separately, the big corporations such as Volkswagen Brand Rating: AA flag for the fastest-growing brand in the automobile Group and BMW Group are able to share technology sector. Aston Martin had a very positive year, with its across their family of brands. Ferrari’s brand image Rank 2018: 6 2017: 8 BV 2018: $23,964m has earned it a Brand Strength Index (BSI) score of 6 +1% BV 2017: $23,741m 91.5 and a corresponding AAA+ rating, making it the Brand Rating: AAA- strongest brand in the sector. Rank 2018: 7 2017: 6 On the other hand, Volkswagen Group, which owns BV 2018: $20,949m 7 -19% the world’s largest automobile brand portfolio valued BV 2017: $25,879m at US$75.8 billion, is able to leverage synergies Brand Rating: AA+ across Audi, Porsche, and Volkswagen. Volkswagen Group is particularly looking to improve the Rank 2018: 8 2017: 5 relationship across its family of brands as part of its BV 2018: $19,893m 8 -30% medium-term TOGETHER – Strategy 2025 plans. As BV 2017: $28,263m part of this broader vision, the corporate leadership Brand Rating: AAA- recognises that each brand benefits from membership of the Volkswagen Group community, Rank 2018: 9 2017: 7 BV 2018: $19,267m allowing expertise to be shared amongst the brands 9 -21% for their collective benefit. In the short-term, BV 2017: $24,341m Brand Rating: AAA- Volkswagen Group’s focus will initially be on Europe and then China, where the company is currently Rank 2018: 10 2017: 9 refining the positioning of its brands to respond to a BV 2018: $17,583m 10 +15% changing market landscape. BV 2017: $15,292m Brand Rating: AAA-

12. Brand Finance Auto & Tires March 2018 Brand Finance Auto & Tires March 2018 13. Brand Finance Auto Components 10.

Brand Finance Auto Components 10.

The fierce competition in the Top 10 Most Valuable Brands inaugural ranking of auto component brands reflects the Rank 2018: 1 1 BV 2018: $3,432m growing significance of this Brand Rating: AA- business-to-business market. In a globalised world of Rank 2018: 2 2 BV 2018: $2,455m interconnected suppliers, Brand Rating: A+ building and protecting brands represents an important Rank 2018: 3 3 BV 2018: $1,929m opportunity for businesses to Brand Rating: A+ leverage all their assets: both tangible and intangible. Rank 2018: 4 4 BV 2018: $1,799m Alex Haigh Brand Rating: A Director, Brand Finance

Rank 2018: 5 5 BV 2018: $1,491m Brand Rating: A Valeo Wins in Value Top 5 Strongest Brands

French-based manufacturer Valeo is the world’s most BSI Score Rank 2018: 6 valuable brand in the auto component industry, valued at 6 BV 2018: $1,108m US$3.4 billion and ranked well ahead of the Canadian Brand Rating: A+ brand Magna (brand value US$2.5 billion). 64.6 Originally founded as a brake manufacturer near Paris, BSI Score 7 Rank 2018: 7 Valeo diversified into manufacturing a wide variety of auto BV 2018: $1,033m components, including clutches, vehicle heating and 64.5 Brand Rating: A- cooling, driving sensors, and car lighting systems. In recent years, an expansive acquisition strategy has seen it BSI Score Rank 2018: 8 grow quickly as it transforms into a technology-focused 8 BV 2018: $772m supplier to the . 64.2 Brand Rating: A In addition to being the most valuable, Valeo is also the industry’s strongest brand with a brand rating of AA-. BSI Score Rank 2018: 9 9 BV 2018: $761m Magna, the second-most valuable brand in the sector, also 61.3 Brand Rating: A- had a successful year, driven by the launch of the new BMW 5-Series and the Jaguar SUV, the E-Pace. BSI Score Rank 2018: 10 10 BV 2018: $574m The recently-renamed Aptiv, based in the UK, is the third Brand Rating: A+ most valuable brand in the sector at US$1.9 billion, and 59.9 will be looking to build its new brand quickly.

14. Brand Finance Auto & Tires March 2018 Brand Finance Auto & Tires March 2018 15. Brand Finance Tires 10.

Brand Finance Tires 10.

Japanese Brands Slip Top 10 Most Valuable Brands

The world’s biggest tire company by market Rank 2018: 1 2017: 2 capitalisation, Bridgestone, dropped to second place. BV 2018: $7,930m 1 +30% Bridgestone was not the only Japanese brand to lose BV 2017: $6,089m value, with Yokohama down 18% to US$0.8 billion and Brand Rating: AAA Sumitomo Rubber Industries down 62% to US$0.6 billion. A weak domestic market affected all three Rank 2018: 2 2017: 1 BV 2018: $6,992m producers, while value gains from stronger sales growth 2 -6% BV 2017: $7,413m in North America, Europe, and Asia were partially offset Brand Rating: AAA- by a weaker yen. Rank 2018: 3 2017: 3 BV 2018: $4,756m Chinese Tires Gain Traction 3 +32% BV 2017: $3,612m At the same time, Chinese companies have appeared as Brand Rating: AA+ successful challengers to the established players in the tire industry. Although mainland Chinese brands are still Rank 2018: 4 2017: 4 BV 2018: $2,175m outside the top 10, the largest ones, such as Linglong 4 +4% BV 2017: $2,099m and Sailun Jinyu, are making their mark, and given their Brand Rating: AA+ current brand value growth, should make a successful entrance to the top 10 as early as next year. Rank 2018: 5 2017: 8 5 BV 2018: $1,984m BV 2017: $1,100m +80% Bibendum Builds Momentum Top 5 Strongest Brands A strong brand is about more Brand Rating: AA Michelin has become the world’s most valuable tire than marketing. Michelin has Rank 2018: 6 2017: 7 BSI Score BV 2018: $1,590m brand following 30% brand value growth to US$7.9 6 +15% started direct sales of tires to BV 2017: $1,382m billion over the last year. It overtook Bridgestone (down Brand Rating: AA+ 6% to US$7.0 billion), which slipped from first to second 86.9 customers through outlets place in the annual Brand Finance Tires 10 ranking. and the internet, a move that Rank 2018: 7 2017: 5 BSI Score BV 2018: $1,524m 7 -16% As well as being the most valuable brand, Michelin is helps build a BV 2017: $1,821m also the strongest. Its Brand Strength Index (BSI) score 82.0 and allows the company to Brand Rating: AAA- was up a sector-leading 6% to 86.9 out of 100. The corresponding brand rating improved a notch to AAA, collect valuable data. It is also Rank 2018: 8 2017: 10 BSI Score making Michelin the only tire brand with a clear triple A BV 2018: $900m widening the sub-brand 8 +10% rating. BV 2017: $820m portfolio, allowing it to sell Brand Rating: AA- 79.5 (Taiwan) Sustainability and technology initiatives have price-competitive tires and strengthened the brand, including a concept for a BSI Score Rank 2018: 9 2017: 9 premium ones without the two BV 2018: $838m 3D-printed tire that can be adapted to road conditions 9 -18% BV 2017: $1,024m and never needs replacing, which was unveiled in the eating into each other’s market Brand Rating: AA- summer of last year to widespread acclaim. Michelin 79.2 shares. tires performed well in motorsport, winning at the Le Rank 2018: 10 2017: 6 Mans 24hr race and being used in Formula E, which is BSI Score Alex Haigh BV 2018: $601m Director, Brand Finance 10 -62% becoming a desirable place to showcase technology for BV 2017: $1,577m leading car manufacturers. 75.5 Brand Rating: A

16. Brand Finance Auto & Tires March 2018 Brand Finance Auto & Tires March 2018 17. Brand Finance Auto 100 (USD m).

Brand Finance Auto 100 (USD m)

Top 100 most valuable auto brands 1-50 Top 100 most valuable auto brands 51-100

Rank Rank Brand name Country Brand value % Brand value Brand Brand Rank Rank Brand name Country Brand value % Brand value Brand Brand 2018 2017 (USD m) change (USD m) rating rating 2018 2017 (USD m) change (USD m) rating rating 2018 2017 2018 2017 2018 2017 2018 2017

1 3 Mercedes-Benz Germany 43,930 +24% 35,544 AAA- AAA- 51 43 Changan China 2 1 Toyota Japan 43,701 -6% 46,255 AAA- AAA- 52 59 Hero India 3 2 BMW Germany 41,790 +6% 39,335 AAA AAA- 53 37 Mitsubishi Japan 4 4 Volkswagen Germany 33,670 +35% 25,014 AAA AAA 54 70 Maserati Italy 5 7 Honda Japan 22,132 +4% 21,318 AAA- AAA- 55 55 Yamaha Japan 6 5 Nissan Japan 19,376 -22% 24,768 AA+ AAA- 56 62 Dongfeng China 7 9 Porsche Germany 19,055 +54% 12,396 AAA AAA 57 85 Renault Trucks France 8 6 Ford United States 17,294 -23% 22,432 AAA- AAA- 58 54 Dodge United States 9 8 Audi Germany 14,951 +19% 12,546 AAA- AAA- 59 60 Iveco Italy 10 10 Chevrolet United States 12,822 +11% 11,525 AAA- AAA- 60 61 Dacia Romania 11 11 Renault France 61 57 Citroen France 12 15 Land Rover United Kingdom 62 73 Kenworth United States 13 12 Hyundai South Korea 63 71 Japan 14 13 Lexus Japan 64 52 Skoda Czech Republic 15 14 Subaru Japan 65 74 DAF Netherlands 16 29 Haval China 66 66 Lamborghini Italy 17 16 Ferrari Italy 67 25 Opel France 18 22 Geely China 68 39 Wuling China 19 31 Tesla United States 69 82 RAM Trucks United States 20 17 Kia South Korea 70 49 BAIC China 21 18 Suzuki Japan 71 75 China 22 19 Isuzu Japan 72 65 Rolls- Royce UnitedKingdom 23 34 Daihatsu Japan 73 New Paccar United States 24 77 Aston Martin United Kingdom 74 96 Foton China 25 24 Volvo Sweden 75 New Ford Otosan Turkey 26 20 Mazda Japan 76 79 Chrysler United States 27 23 MAN Germany 77 New Yingxiang China 28 72 BYD China 78 83 McLaren United Kingdom 29 32 MINI United Kingdom 79 New China 30 35 Maruti Suzuki India 80 92 FAW China 31 58 Jaguar United Kingdom 81 89 Mack United States 32 48 Fiat Italy 82 93 Seat Spain 33 33 Polaris United States 83 New Oushang China 34 42 Peugeot France 84 100 UD Trucks Japan 35 51 Jeep United States 85 New Yulon China (Taiwan) 36 27 Harley-Davidson United States 86 69 Vauxhall France 37 40 BUICK United States 87 76 JMC China 38 47 Bentley United Kingdom 88 90 Ashok Leyland India 39 41 Scania Sweden 89 99 TVS India 40 28 GMC United States 90 New KTM Austria 41 44 Mahindra India 91 New Renault Samsung South Korea 42 36 Hino Japan 92 New China 43 46 Lincoln United States 93 97 Tofas Turkey 44 50 Cadillac United States 94 New Song China 45 38 Acura Japan 95 New China 46 80 Smart Germany 96 New Zhongtong China 47 64 Tata Motors India 97 New Peterbilt United States 48 81 Baojun China 98 New Piaggio Italy 49 68 Bajaj Auto India 99 94 SsangYong South Korea 50 56 JAC Motors China 100 New Trumpchi China

18. Brand Finance Auto & Tires March 2018 Brand Finance Auto & Tires March 2018 19. Methodology. Understand Your Brand’s Value.

Brand Finance calculates the values of the A Brand Value Report provides a complete Each report includes expert recommendations for growing brands in its league tables using the Royalty breakdown of the assumptions, data sources, and brand value to drive business performance and offers a Relief approach – a brand valuation method calculations used to arrive at your brand’s value. cost-effective way to gaining a better understanding of compliant with the industry standards set in Brand Strength your position against competitors. ISO 10668. Index (BSI) Brand strength This involves estimating the likely future revenues that expressed as a BSI What is a Brand Value Report? What are the benefits of a Brand are attributable to a brand by calculating a royalty rate score out of 100. that would be charged for its use, to arrive at a ‘brand Brand Valuation Summary Value Report? value’ understood as a net economic benefit that a + Internal understanding of brand licensor would achieve by licensing the brand in the + Brand value tracking Insight open market. + Competitor benchmarking Provide insight as to how the brand is + Historical brand value The steps in this process are as follows: performing vs. key competitors on underlying measures and drivers of Brand Brand Strength Index 1 Calculate brand strength using a balanced scorecard Royalty Rate brand value and brand strength. of metrics assessing Marketing Investment, + Brand strength tracking BSI score applied to an Stakeholder Equity, and Business Performance. Brand + Brand strength analysis appropriate sector Strategy strength is expressed as a Brand Strength Index (BSI) + Management KPIs royalty range. Understand where brand value is being score on a scale of 0 to 100. + Competitor benchmarking generated by region and channel in 2 Determine royalty range for each industry, reflecting order to identify areas of opportunity Royalty Rates the importance of brand to purchasing decisions. In that warrant further investigation. luxury, the maximum percentage is high, in extractive + Transfer pricing industry, where goods are often commoditised, it is + Licensing/franchising negotiation Benchmarking + International licensing lower. This is done by reviewing comparable licensing Track year-on-year changes to brand + Competitor benchmarking agreements sourced from Brand Finance’s extensive value and set long-term objectives database. Brand Revenues against which high-level brand Cost of Capital 3 Calculate royalty rate. The BSI score is applied to the Royalty rate applied to performance can be benchmarked. + Independent view of cost of capital for internal royalty range to arrive at a royalty rate. For example, if forecast revenues to valuations and project appraisal exercises the royalty range in a sector is 0-5% and a brand has derive brand value. Education a BSI score of 80 out of 100, then an appropriate Provide a platform of understanding Customer Research royalty rate for the use of this brand in the given sector which the company can use to educate will be 4%. + Utilities employees on the importance of the + Insurance brand. 4 Determine brand-specific revenues by estimating a + Banks proportion of parent company revenues attributable + Telecoms Communication to a brand. Brand Value Communicate your brand’s success to 5 Determine forecast revenues using a function of Post-tax brand shareholders, customers, and other historic revenues, equity analyst forecasts, and revenues discounted to For more information regarding our Brand Value strategically selected audiences. economic growth rates. a net present value (NPV) Reports, please contact: which equals the brand 6 Apply the royalty rate to the forecast revenues to value. Understanding derive brand revenues. Richard Haigh Understand and appreciate the value of Managing Director, Brand Finance your brand as an asset of the business. 7 Brand revenues are discounted post-tax to a net [email protected] present value which equals the brand value.

Disclaimer Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions produced in this study are based only 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 report are not to be construed as providing investment or business advice. Brand Finance does not intend the report to be relied upon for any reason and excludes all liability to any body, government or organisation.

20. Brand Finance Auto & Tires March 2018 Brand Finance Auto & Tires March 2018 21. Consulting Services. Communications Services.

We offer a variety of services to help communicate your brand’s success. 1. Valuation: What are my intangible 2. Analytics: How can I improve assets worth? marketing effectiveness? Valuations may be conducted for technical Analytical services help to uncover drivers purposes and to set a baseline against of demand and insights. Identifying the CEO Quote Social Media which potential strategic brand factors which drive consumer behaviour Supply a quote in Coordinate with your scenarios can be evaluated. allows an understanding of how brands recognition of your social media activity N 2. brand’s performance to communicate your IO AN create bottom-line impact. for you to use in brand’s success more + Branded Business Valuation T A A L external and internal effectively. + Trademark Valuation U Y Market Research Analytics + Awards L communications. T Produce an accolade + Intangible Asset Valuation A I Return on Marketing Investment + Press Release V C plaque and hand-written + Brand Contribution Brand Audits + Assist with the creation . S certificates, personally 1 of a press release Brand Scorecard Tracking + communicating your signed by our CEO, to Brand & brand’s success. recognise your brand’s

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We help marketers to We provide financiers and We help brand owners We help clients to enforce connect their brands to auditors with an and fiscal authorities to and exploit their business performance by independent assessment understand the intellectual property rights Your Brand evaluating the return on on all forms of brand and implications of different by providing independent investment (ROI) of intangible asset tax, transfer pricing, and expert advice in- and brand-based decisions valuations. brand ownership outside of the courtroom. and strategies. arrangements.

Example digital endorsement stamp for use on your website as well as in investor relations and advertising, to recognise your brand’s performance.

22. Brand Finance Auto & Tires March 2018 Brand Finance Auto & Tires March 2018 23. Contact us.

The World’s Leading Independent Brand Valuation and Strategy Consultancy T: +44 (0)20 7389 9400 E: [email protected] www.brandfinance.com