RedBook Australia has unveiled the Marque Equity Index (MEI), a new metric designed to evaluate the value of vehicle brands. The MEI is positioned as a tool that leverages real-world market data to offer insights into brand recognition and vehicle values.

RedBook, a longstanding provider of insights into the Australian automotive market for over 75 years, aims to assist original equipment manufacturers (OEMs), banks, insurance companies, and other stakeholders with the MEI. The index is intended to help these entities navigate market trends and optimise decision-making processes.

The MEI measures brand strength by analysing resale value data. An example of this analysis is the comparison between the Toyota 86 and Subaru BRZ, where the Toyota 86 holds a 9.8% premium over the Subaru BRZ's -2.1%. This suggests a significant difference in brand perception and resale value between the two models.

Top-performing brands such as Toyota, Suzuki, and Volkswagen have shown strong resale demand, attributed to brand loyalty and reliability. In contrast, challenger brands like Chery, LDV, and GWM have lower MEI scores, which could be due to limited consumer recognition.

Premium brands, including Ferrari and Lamborghini, maintain high resale values. This is attributed to their exclusivity and craftsmanship, factors that contribute to their strong brand equity. Meanwhile, Tesla's MEI score is influenced by rapid technological changes, an evolving model lineup, and high initial depreciation rates.

Adrian Givoye, General Manager of RedBook Australia, commented on the launch of the MEI: "MEI offers a unique view of how brand reputation affects market performance. By leveraging decades of valuation expertise, we're providing a powerful new metric that quantifies the influence of brand equity on used vehicle values. Helping our customers better understand how perception impacts resale values, allowing them to make data-driven decisions."

Givoye further stated, "RedBook’s Marque Equity Index provides valuable insight into brand strength, supporting marketers and agencies alike to refine their strategies and better assess risk and opportunity in today’s dynamic automotive market."

RedBook operates as a subsidiary of carsales, functioning in eight countries and offering data across various vehicle types. The introduction of the MEI is part of RedBook's continued efforts to provide comprehensive market insights and support strategic decision-making in the automotive sector.