New report from Brand Finance reveals that nearly half of the fastest-growing tyre brands globally are Chinese
- Michelin retains the title of the world’s most valuable and strongest tyre brand with stable performance
- Bridgestone and Continental Tires round off podium in 2nd and 3rd for brand value
- Giti treads ahead as the fastest-growing tyre brand in the ranking, following a 19% brand value increase
- Sailun, Linglong Tire and Sentury Tire accelerate with overseas demand surge
5th June 2024, LONDON - For the seventh consecutive year, Michelin has secured its position as the world’s most valuable tyre brand, with a brand value of USD 7.9 billion, according to new data from Brand Finance, the world’s leading brand valuation consultancy. The French brand's value has remained stable year-on-year, despite various factors impacting the market and performance, including declining sales within the road transportation segment and reduced replacement market unit sales.
This year, Michelin is also the world’s strongest tyre brand, achieving a Brand Strength Index (BSI) score of 85.6 out of 100. Despite a 2.5-point decline in its BSI score, mainly due to a dip in forecasted revenue, Brand Finance research indicates that Michelin excels in Familiarity and Recommendation. In its home market, Michelin also commands the highest price acceptance.
Bridgestone and Continental Tires have secured the 2nd and 3rd positions in the ranking, respectively, following an 8% and 13% increase in brand value. Bridgestone’s brand value has risen to USD 7.6 billion, narrowing the gap to just USD 254 million behind long-standing leader Michelin.
Like all major tyre manufacturers, Bridgestone has faced challenges due to the unprecedented rise in raw material prices and high inflation. The company has taken robust measures to address these issues through flexible supply management, which has contributed to a 5% increase in year-on-year revenue.
Continental Tires, with a brand value of USD 4.7 billion, has earned better scores in Familiarity, Consideration, and Reputation, driving an increase in its BSI score, up 3.2 points from 2023 to 79.1 out of 100.
With a staggering 19% increase, Giti's brand value has leapt to USD 924 million, making it the fastest-growing tyre brand in the world this year, ranking 9th overall. Solid revenue growth forecasts, particularly in the Chinese market, support this significant growth. The brand also increased its BSI score by 6.3 points.
Giti has exhibited a particularly robust performance in China, its largest market by revenue. Brand Finance’s research shows that Giti received a very high Recommendation score in China, reflecting customers’ high satisfaction with the brand. Familiarity and Consideration are also exceptionally high, showcasing that Giti has achieved substantial market recognition and acceptance in the region.
Sailun (brand value up 10% to USD 801 million), Linglong Tire (brand value up 11% to USD 799 million) and Sentury Tire (brand value up 17% to USD 377 million) have also witnessed remarkable brand value growth driven by substantial overseas demand. The Chinese tyre industry experienced a prosperous year in 2023, marked by the expansion of overseas operations, high demand, and favourable domestic conditions for industry development. Notably, exports to South America increased by 33%.
Alex Haigh, Managing Director, Brand Finance Asia, commented:
"In a landscape where global tyre giants face challenges, the success of Chinese brands shines brightly. Their remarkable growth amid adversity underscores the resilience and dynamism of the Chinese tyre industry. With innovative approaches and a focus on sustainability, Giti emerges as the fastest-growing brand, buoyed by robust performance in China. Meanwhile, Linglong Tire, Sentury Tire, and Sailun are expanding their global footprint, leveraging cost-effectiveness to secure significant market share. As inflation grips traditional markets, the ascent of these Chinese brands heralds a new era of competition and opportunity in the global tyre market."
ENDS
Note to Editors
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes over 100 reports, ranking brands across all sectors and countries. The world’s top 25 most valuable and strongest tyre brands are included in the Brand Finance Tyres 25 2024 report.
Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors.
The full ranking, additional insights, charts, more information about the methodology, and definitions of key terms are available in the Brand Finance Tyres 25 2024 report.
