Japan’s Denso, whose brand value is up 6% to $4.5 billion, retains title in 2023; Aptiv, up sharply at 30% to $1.6 billion, is the fastest-growing brand; Valeo rated as strongest in latest automotive component brand study.
05 Apr 2023 | 19429 Views | By Ajit Dalvi
Japanese brand Denso, whose brand value is up 6% to US$ 4.5 billion, has retained its title as the world’s most valuable automotive components brand for the sixth consecutive year. This finding comes from the latest edition of ‘Auto 100’, the annual comprehensive study on the most valuable and strongest automobile ...
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Japanese brand Denso, whose brand value is up 6% to US$ 4.5 billion, has retained its title as the world’s most valuable automotive components brand for the sixth consecutive year. This finding comes from the latest edition of ‘Auto 100’, the annual comprehensive study on the most valuable and strongest automobile and automotive brands produced by leading brand valuation consultancy, Brand Finance.
Denso is among the many global component majors which have invested heavily in electrification as the industry makes the transition to electric mobility. In its comments on Denso, Brand Finance says, “While challenging external factors, such as increased costs related to inflation, energy, logistics, materials and parts, have not provided plain-sailing for Denso, it has used the opportunity to pursue profit improvements and efficiency. Denso has invested heavily in electrification as it looks towards a more an electric focuses future for the automotive industry. It is also researching and moving towards innovating within advanced technology for electrified aircraft, a field that Denso expects to become a reality and is potentially poised to break into.”
Aptiv brand value zooms 30%
Aptiv has been ranked as the fastest-growing component brand, up 30% to US $1.6 billion. The company saw its revenues increase 16% in 2022 after a second year of record new business bookings. Further, recent acquisitions of Wind River Systems Inc and Intercable Automotive have positioned Aptiv for accelerated growth over the long term. While Wind River delivers software for mission-critical intelligent systems, Intercable Automotive is a leader in high voltage power distribution and interconnect technology. Both acquisitions have contributed to Aptiv’s brand value growth and are set to accelerate the transition towards a software-defined future for Aptiv and enhance its position as leader in vehicle architecture systems.
Valeo rated strongest component brand
French component manufacturer Valeo, with its brand value up 1% to US$ 2.3 billion, has been rated as the strongest brand in the sector, earning an AA-rating from Brand Finance and a Brand Strength Index score of 69 out of 100,
Last year, Valeo introduced its ‘Move Up strategic plan’, which looks to build a business that is technologically stronger, well positioned, and accelerating towards electrification. The successful implication of this throughout 2022 confirms the brand’s strong growth prospects, through which it will look to take advantage of hyper-growth market trends starting to emerge in the fields of electrification and automation. As per the Brand Finance report, "This commitment and positive direction towards electrification has likely improved stakeholder perceptions of Valeo, helping sustain its industry leading Brand Strength Score."
Disruptive megatrends like CASE in the automotive industry have meant that component manufacturers must continually develop and adapt to keep up with industry changes. Graphic: courtesy Brand Finance
Upping the ante on sustainability
As global demand for cars continued to pick up following widespread relaxation of pandemic-induced restrictions, many auto component brands have experienced significant supply chain challenges over the past year. While demand has resulted in some growth, shifting consumer preferences and technical breakthroughs have meant that brands must continually develop and adapt to keep up with industry changes.
Top of the agenda for many brands is sustainability. There is expected to be a surge in demand for EVs in the coming years and catering to this is becoming increasingly critical to auto component brands.
Consequently, there will be a significant transformation in the production of EV-specific components such as batteries, electric motors, and power electronics within the automotive component industry.
Car manufacturers are also progressively utilising lightweight materials in their vehicles to improve fuel efficiency and decrease emissions, leading to a surge in demand for such components and materials. Further, component manufacturing is set to undergo a dramatic change in relation to the development of autonomous vehicle technology, as sensors, radar systems, and other parts are produced specifically for these cars. Vehicles are also becoming more connected, which is predicted to increase demand for parts including telematics systems, and advanced driver assistance systems. Generally, the auto component industry's prospects are concentrated on satisfying the rising demand for environmentally friendly and technologically sophisticated automobiles while also enhancing efficiency and cutting costs, concludes Brand Finance.
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