In addition to bagging the honour of New Zealand’s top car brand in 2024, Toyota has now solidified its status as the world’s most valuable car brand, according to the 2025 Brand Finance report, thanks to its consistent focus on hybrid technology, reliability and strong global market presence.
With a valuation of US$64.7 billion (NZ$114.1 billion), a 23% increase from 2024, the Japanese automaker stands well ahead of its competitors, leaving Tesla to grapple with a significant decline.
Tesla’s steep decline
Tesla’s brand value dropped sharply, falling 26% from US$58.3 billion (NZ$102.8 billion) in 2024 to US$43 billion (NZ$75.8 billion) this year, driven by stagnation in its vehicle offerings and intensifying competition from legacy automakers and emerging EV brands like BYD.
This marks a substantial decline from its peak of US$66.2 billion (NZ$116.8 billion) in 2023. The American EV manufacturer now ranks fourth among automakers and 36th overall.
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Meanwhile, Mercedes-Benz overtook Tesla with a US$53 billion (NZ$93.4 billion) valuation, despite an 11% year-on-year decline. Hyundai Group also climbed ahead, securing third place.
Factors behind Tesla’s slide
Brand Finance attributes Tesla’s diminished value to its aging vehicle lineup, including models like the Model S and Model X, which have seen minimal updates in recent years.
Tesla has more recently introduced updates to its core offerings, the Model 3 and Model Y, which constitute the bulk of its sales not only in New Zealand but in many other markets. It has also introduced a more esoteric model with the Cybercab, an autonomous vehicle whose looks are inspired in part by the much-maligned Cybertruck.
In contrast, competitors such as Mercedes-Benz and BYD are introducing fresher designs and more advanced features that capture consumer interest equally. Additionally, the polarising public image of CEO Elon Musk has further impacted the brand’s perception.
David Haigh, CEO of Brand Finance, noted that while Musk retains a strong following, his controversial actions and statements have negatively impacted the brand’s perception.
-The study also highlighted regional disparities in Tesla’s appeal. In Europe, the brand’s consideration score – an indicator of potential buyers – dropped from 21% to 16%, with brands like Mercedes and BYD performing better.
Toyota’s unrivalled position
Toyota’s consistent innovation and widespread appeal have propelled it to the top of the rankings, with models like the all-electric bZ4X and the updated Prius showcasing its commitment to eco-friendly technology and market adaptability.
With its valuation increasing by nearly a quarter, Toyota is now the 18th most valuable brand across all industries. Mercedes-Benz follows at 23rd, while Tesla’s overall position slipped to 36th.
Broader industry insights
The Brand Finance report doesn’t limit its analysis to automakers. Across all sectors, Apple leads with an astonishing valuation of $574.5 billion, followed by Microsoft, Google and Amazon.
This stark difference in valuation trends highlights how consumer preferences increasingly favour tech-driven ecosystems over traditional industries like automotive. No car brands managed to secure a spot in the top 17, highlighting the industry’s challenges in competing with tech giants.
Global rankings for car brands
The top-ranked car brands for 2025 include:
- Toyota (Japan) – 18th
- Mercedes-Benz (Germany) – 23rd
- Hyundai Group (South Korea) – 29th
- Tesla (United States) – 36th
- BMW (Germany) – 37th
- Porsche (Germany) – 40th
- Volkswagen (Germany) – 61st
- Honda (Japan) – 70th
- Ford (United States) – 86th
- Audi (Germany) – 127th
- Ferrari (Italy) – 158th
- BYD (China) – 167th
- Chevrolet (United States) – 176th
- Come on (South Korea) – 200th
- Volvo (Sweden) – 203rd
- Nissan (Japan) – 226th
- Lexus (Japan) – 230th
- Renault (France) – 346th
- Jeep (United States) – 385th
- Subaru (Japan) – 391st
These figures underscore the shifting dynamics within the automotive sector as brands navigate evolving consumer preferences and economic pressures.
Market outlook
Tesla’s challenges signal the importance of refreshing product lines and managing leadership’s public image.
Meanwhile, Toyota’s ascendancy reaffirms the value of strategic innovation and reliability. As the industry faces growing competition from tech and EV-focused brands, maintaining consumer trust will remain crucial.
