SOUTHFIELD, Michigan., 28 August 2024 /PRNewswire/ – Industry brand loyalty rates showed an upward trend in the first half of 2024 after several years of stagnation or decline, according to a new analysis of new vehicle registration data for the first half of 2024 by S&P Global Mobility.

The industry’s brand loyalty rate was 52.5% through June, an improvement of 1.9 percentage points (pp) over the same period in 2023 and the first year-on-year increase since 2020. The year-on-year increase in loyalty is a positive sign for the industry after several years of lower loyalty levels due to inventory shortages and the post-pandemic recovery.

More than half of all brands in the industry saw a year-over-year increase of 1 percentage point (pp) or more. This group included both mainstream and luxury brands, which saw gains of 1.9pp and 1.4pp, respectively. Growing inventory levels and a strong pipeline of households returning to the market were the main factors driving loyalty gains in the first half of 2024.

“Last year we saw a big jump in the number of households coming back into the market to buy a new vehicle, but the inventory was too low,” said Vince PalomaresAssociate Director, Loyalty Product Management at S&P Global Mobility. “This year, reintroduction volumes remain consistent; however, inventory levels are up more than 40%, giving households more options to stay loyal to their existing brand.”

Conquest trends negatively affected

Increased brand loyalty had a negative impact on conquest volumes, as both sectors recorded declines in the first half of the year compared to the same period last year. Luxury brands, which saw an 18% year-on-year increase in the first half of 2023, suffered the largest decline, falling 6.4% in the first half of 2024. Mainstream brands, on the other hand, saw conquest numbers fall 1% compared to the first half of 2023, although they were still down year-on-year.

“The positive increase in loyalty came at the expense of conquests,” said Tom LibbyAssociate Director of Loyalty Solutions and Industry Analysis at S&P Global Mobility. “The past few years have shown that it is possible to increase both loyalty and acquisition when the pool of market returns also increases. In the first half of 2024, there was little to no change in market returns, so either loyalty or acquisition would be affected.”

Among individual brands, Tesla remains the leader in brand loyalty with a loyalty rate of 67.8% in the first half of 2024. While all Tesla models retain more than 60% of their previous owners, the Model 3 remains the leader in the brand’s range with a loyalty rate of 72.1%.

“Tesla has always been a brand with strong loyalty among customers, despite a limited product portfolio,” Palomarez said. “Changes in BEV prioritization among other OEMs, as well as Tesla’s directive to lower prices when necessary, have discouraged households from defecting.”

Further mid-year highlights:

• General Motors leads all multi-brand manufacturers in terms of manufacturer loyalty with 67.7% in the first half of 2024
• Jaguar, Land Rover and Lincoln are among the companies with the highest gains in brand loyalty compared to the previous year and were able to increase their rates by more than 6 PPs.
• The Lincoln Nautilus is currently the leader in terms of model loyalty with 46.7%

About S&P Global Mobility

At S&P Global Mobility, we deliver valuable insights from unmatched automotive data that enable our clients to anticipate change and make informed decisions. Our expertise helps them optimize their business, reach the right consumers and shape the future of mobility. We open the door to automotive innovation, revealing today’s buying habits and helping clients plan for tomorrow’s emerging technologies.

S&P Global Mobility is a division of S&P Global (NYSE: SPGI). S&P Global is the world’s leading provider of credit ratings, benchmarks, analytics and workflow solutions for the global capital, commodity and automotive markets. With each of our offerings, we help many of the world’s leading organizations navigate the economic landscape so they can plan for tomorrow today. For more information, visit www.spglobal.com/mobility.

Media contact:

Michelle Culver
S&P Global Equity
248.728.7496 or 248.342.6211
[email protected]

Source: S&P Global Mobility