Porsche is the world’s most valuable luxury brand

Porsche is the world’s most valuable luxury and premium brand, according to the latest Brand Finance Luxury & Premium rankings.

Valued at $36.8bn, the German carmaker tops the annual survey for the sixth consecutive year. It is ranked ahead of Louis Vuitton ($26.3bn), which retains second overall in the ranking. Chanel ($19.4bn) climbed to third spot, pushing Gucci ($17.8bn) down to fourth.

Tenth-placed Ferrari is the next automotive brand in the survey of 50 companies, ahead of Lamborghini (18th), Bentley (24th), Rolls-Royce (32nd), Maserati (35th) and Aston Martin (44th). With its brand value more than doubling to $4.1bn, Lamborghini is the fastest-growing company in the rankings.

Brand value is the net economic benefit that a brand owner would achieve by licensing the brand in the open market, according to Brand Finance, which compiles and publishes the survey.

“Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors,” Brand Finance said, adding that Porsche continues to push its strategy of modern luxury.

“The brand combines an outstanding product with a highly personal customer experience. Porsche is expanding its product portfolio with new sports car concepts, but will also continue to focus on limited editions and expand its Sonderwunsch programme, which champions highly tailored cars where customers get involved in the design,” Brand Finance says.

Porsche reported a 27.4% rise in annual profit to €6.8bn and revenue of €37.6bn in 2022. Deliveries rose 2.6% to almost 310,000 units, a record for the German carmaker.

Already one of the world’s most profitable automakers, Porsche plans a long-term operating return on sales of more than 20% with its new Road to 20 programme. The company, a huge money spinner for the Volkswagen Group, is targeting revenue of €40bn-€42bn this year and a margin of 17%-19%.

The company’s stock has risen more than 40% since it started trading on the Frankfurt Stock Exchange at €82.50 a share last September. Porsche overtook Volkswagen as Europe’s most valuable carmaker within a week of its IPO.