As Inventory Levels Recover, Loyal Customers Returning to Their Brand of Choice, J.D. Power Finds
Perennial brand loyalty leaders including Toyota, Honda and Lexus have each been able to grow their respective shares of loyal customers amid stagnation experienced by other brands, according to the J.D. Power 2024 U.S. Automotive Brand Loyalty Study,SM released.
“Amid ongoing inventory shortages, the most loyal customers actually stayed out of the market if they were unable to get their desired vehicle”
“Amid ongoing inventory shortages, the most loyal customers actually stayed out of the market if they were unable to get their desired vehicle,” said Tyson Jominy, vice president of data & analytics at J.D. Power. “Now that inventory levels are recovering, customers are coming back. In particular, Toyota and Honda are benefitting from increased availability of hybrid vehicles, with Honda owners swapping out their gas-powered vehicles for hybrids at nearly triple the rate of the industry average. Lexus is also benefitting from strengthened residual values, which are helping drive loyalty for the brand despite premium brands as a whole experiencing a plateau this year.”
Read More: Consensus Acquires ReachSuite to Deliver the World’s First Product Experience Platform
Highest-Ranking Brands
Porsche ranks highest among premium brand car owners for a third consecutive year, with a 57.5% loyalty rate. Mercedes-Benz (49.0%) ranks second.
Lexus ranks highest among premium brand SUV owners with a 60.2% loyalty rate. BMW (55.8%) ranks second.
Toyota ranks highest among mass market brand car owners for a third consecutive year, with a 62.5% loyalty rate. Honda (58.8%) ranks second.
Honda ranks highest among mass market brand SUV owners with a 64.2% loyalty rate. Subaru (62.6%) ranks second.
Read More: SalesTechStar Interview with Clay Sharman, Founder and CEO of Krateo AI
Ford ranks highest among truck owners for a third consecutive year, with a 65.1% loyalty rate—the highest loyalty rate in the study. Toyota (60.8%) ranks second.
The study, now in its sixth year, uses data from the Power Information Network to calculate whether an owner purchased the same brand after trading in an existing vehicle on a new vehicle. Customer loyalty is based on the percentage of vehicle owners who choose the same brand when trading in or purchasing their next vehicle. Only sales at new-vehicle franchised dealers qualify. The study includes brand loyalty across five segments: premium car; premium SUV; mass market car; mass market SUV; and truck.
The 2024 study calculations are based on transaction data from September 2023 through August 2024 and include all model years traded in.
