Toyota has reclaimed its position as the world’s most valuable automotive brand, overtaking both Mercedes-Benz and Tesla, according to the latest Automotive Industry 2025 report by leading brand valuation consultancy Brand Finance. The Japanese automaker’s brand value surged by 23% to USD 64.7 billion, driven by strong sales and a strategic focus on hybrid vehicles.
As the industry grapples with a 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 company’s ability to optimize production and maintain profitability despite rising material costs has reinforced its leadership. AI-driven supply chain management and a diverse product mix have also contributed to Toyota’s sustained growth.
Tesla, which previously held a dominant position in brand value rankings, experienced a significant decline of 26%, bringing its valuation down to USD 43.0 billion and placing it in third position. The decline has been attributed to missed revenue expectations, intensified competition in the EV sector, and aggressive price cuts in key markets, particularly China. Additionally, shifting political dynamics in the United States, including the potential rollback of EV subsidies under a Trump administration, have added to Tesla’s challenges.
