Recently, at The Tire Cologne in Germany, Brand Finance, an international brand value evaluation consulting agency, released a list of the world's top 25 tire brands. Michelin remains the world's most valuable and strongest tire brand for the seventh consecutive year.
Michelin tops the list for seven consecutive years
The latest report shows that Michelin has maintained its title as the world's most valuable and powerful tire brand with its stable performance. Bridgestone and Continental Tires ranked second and third respectively based on their brand value.
Despite various factors affecting the market and performance, including a decline in sales in the original equipment segment and lower unit sales in the replacement market, Michelin remained the world's most valuable tire brand for the seventh consecutive year with a brand value of $7.9 billion.
This year, the Michelin Brand Strength Index (BSI) scored 85.6 points (out of 100 points). Despite a 2.5 percentage point drop in its BSI score, largely due to a forecast revenue decline, the Brand Finance study showed that Michelin performed well in terms of familiarity and recommendation.
The brand value of Bridgestone and Continental Tires increased by 8% and 13% respectively, ranking second and third on the list. Bridgestone's brand value has risen to $7.6 billion, narrowing the gap with long-time leader Michelin to $254 million.
Like other tire makers, Bridgestone is facing challenges due to unprecedented rise in raw material prices and high inflation. The company took strong steps to address these issues through flexible supply management, and operating income increased 5% year-over-year.
Continental Tire, with a brand value of $4.7 billion, received better scores in familiarity, consideration and reputation, driving an improvement in its BSI score, which rose 3.2 points from 2023 to 79.1.
Encouraged by strong performance in China, Giti became the fastest growing brand. Following a 19% increase in brand value, Giti became the fastest growing tire brand in the ranking, ranking 9th.
Chinese brands shine
Nearly half of the world's fastest-growing tire brands are Chinese brands. In 2023, China's tire industry experienced a prosperous year, with overseas business expansion, strong demand, and favorable domestic industry development. Especially noteworthy was the 33% increase in exports to South America.
Brand Finance 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. "
Meanwhile, Linglong Tire, Sentury Tire and Sailun are expanding their global footprint, leveraging cost-effectiveness to secure a huge market share.
In 2024, Sailun's brand value increased by 10% to US$801 million, Linglong Tire's brand value increased by 11% to US$799 million. Sentury also achieved significant brand value growth driven by overseas demand, with its tire brand value rising 17% to US$377 million. Unfortunately, Zhongce Rubber is not on this list.
"As inflation grips traditional markets, the ascent of these Chinese brands heralds a new era of competition and opportunity in the global tyre market." commented Brand Finance.
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