automotive sector car brands figures

The automotive sector in Europe, a sector valued despite the crisis

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The value of the automotive sector is doing quite well despite a period of turmoil. Brand Finance published its latest report on 16th June. It makes an inventory of the European market by analyzing the 500 most valued and important brands. While the total value of these 500 brands has fallen by %, it has fallen from €1.96 trillion to €1.76 trillion in all sectors that do not seem to be affected in the same way.

For example, while the banking sector shows a 20% drop in cumulative %, the automotive sector is not at all on the same trend. Indeed, the automotive sector is the most valued sector on the European continent. It represents 14% of the total value of the brands in the 2021 ranking. Within this sector itself, brands such as Mercedes-Benz or Ferrari, place themselves at the top. One is the most valued, the other is the strongest. Thus, the report highlights the position of brands. However, this does not mean that the automobile has not been impacted by the crisis quite the contrary.

The automotive sector dominated by German brands

Brand Finance, the leading consulting firm in brand evaluation, is therefore drawing up its balance sheet for 2021. This year, it is also the first time that the ranking has been expanded. Indeed, it now includes 500 of the most valued brands in Europe. This should make it possible to make a comparison with the two other major world economies, the United States and China. Thus, the report offers a second place to Europe, which is experiencing upheavals linked to the pandemic. The United States is on the front step. China is just behind and catching up quickly.

If we look at the report in more detail, one sector stands out, and that is the automobile sector. It includes 27 brands. They alone account for 14% of the cumulative value of brands. In the automotive sector, we can see some brands stand out. Indeed,German brands still dominate the automotive industry. The seven brands total a value of €171.5 billion. More specifically, they account for three quarters of the automotive sector.

In this sense, Mercedes Benz is the brand that is the most valued in Europe. It is at the top of the ranking with a brand value of 49.6 billion euros. Following this, Volkswagen is not far away. The brand is in third place in the ranking. Even if it loses 1% of its value, it still represents EUR 40 billion. In 5th position BMW also shows a decline in value of 6%. However, this does not prevent it from reaching a value of EUR 34.4 billion. Finally Porsche is in 6th position with a value of 29.2 billion euros.

Le constat est également que l’année n’a pas été tendre avec le secteur automobile. Les ventes ont été impactées par la COVID-19. En effet, malgré sa position de leader, Mercedes Benz a perdu 16% de valeur de marque. La période a été difficile à envisager. Cette baisse s’explique également par des difficultés de communiquer une stratégie claire concernant la mobilité électrique. S’agissant de l’enjeu majeur de la mobilité ce point est non négligeable. Cependant Mercedes a eu du mal à distribuer une vision claire concernant ses modèles électriques. Si les marques sont représentées par une certaine valeur monétaire, elles sont aussi représentées par un critère de force. 

Ferrari, positions itself as the strongest brand in the sector

Effectivement, Brand finance analyse aussi la force des marques. Pour cela elle prend en compte l’investissement marketing, l’ image de la marque auprès des parties prenantes et enfin la force économique. En prenant en compte l’ensemble de ces critères Brand Finance tient une gagnante dans le secteur automobile. Il s’agit de la marque Ferrari. Il faut dire qu’elle ne voit pas rouge puisqu’elle se place également comme la deuxième marque la plus forte du globe. Elle affiche un score de Force de Marque de 93,9 sur 100. La force de la marque au cheval cabré, n’est pas une coïncidence. Il faut dire que Ferrari a réagi particulièrement rapidement à la crise sanitaire.

Elle a notamment stoppé sa production pendant la pandémie. En suivant, elle a fait le choix de se positionner sur la mise en place d’un environnement de travail sûr. Cette stratégie est payante. Elle a en fait permis d’une part de minimiser les perturbations et d’autre part de renforcer sa réputation de marque dans le secteur automobile. Par conséquent, l’image de marque de Ferrari s’est développée positivement en termes de qualité et de responsabilité.

Thus, this has led the Ferrari brand to rank as one of the best brands in terms of reputation. It is therefore placed in the Global Brand Equity Monitor ranking. In this sense, although the brand is a brand that inspires more than it is accessible,it displays an image without missteps. However, if the dream has a price, it can always be observed. For those who would like to caress with their eyes the famous red of the brand and the clean lines of the sportswomen, the FERRARI PALAU dealership opens its doors from Monday to Saturday in Mérignac.

Finally, following this landmark report, one point should be noted. This is the correlation between brand value and brand strength. Indeed, if we look at the case of Ferrari which has the greatest brand strength, the decline in its brand value has only slightly decreased. It fell slightly by 4% to a value of 7.9 billion. It also plans to take measures to preserve the exclusivity of its trademark by reducing the current licensing agreements and reducing its product categories.

Sources:

“Car brands dominate in Europe: Mercedes and Ferrari, at the top of the Top 500 most valued and strongest brands” Brand finance, press release of 16 June 2021

BRAND FINANCE EUROPE 500 2021” Brand Finance, Brand Finance 500 Europe Report 2021

FERRARI PALAU

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