SOUTHFIELD, Mich., Aug. 28,
2024 /PRNewswire/ -- Industry brand loyalty rates
trended upward in the first half of 2024 following several years of
flat or declining values, according to a new S&P Global
Mobility analysis of new vehicle registration data through the
first half of the year.
The industry's brand loyalty rate through June stands at 52.5%,
reflecting a 1.9 percentage point (PP) improvement over the same
period in 2023, marking the first year-over-year increase since
2020. The year-over-year increase in loyalty is a positive sign for
the industry after several years of lower loyalty levels due to
inventory shortages and post-pandemic recovery.
More than half of all brands in the industry saw a
year-over-year increase of 1 percentage point (PP) or better. This
group included both mainstream and luxury brands, which saw
increases of 1.9 PPs and 1.4 PPs, respectively. Growing inventory
levels and a strong pipeline of return-to-market households were
the primary factors in loyalty gains for the first half of
2024.
"Last year we saw a big jump in the number of households
returning to market for a new vehicle, but the inventory was
lacking," said Vince Palomarez,
associate director, Loyalty product management at S&P Global
Mobility. "This year, return-to-market volume remains consistent;
however, inventory levels are up more than 40%, so households have
more opportunity to remain loyal to their previous brand."
Conquest trends adversely affected
The increase in brand loyalty adversely affected conquest
volume, as both sectors experienced year-over-year declines in the
first half compared to the same period last year. The Luxury
brands, which experienced an 18% year over year increase for the
first half of 2023, faced the largest decline, dropping 6.4% in the
first half of 2024. Meanwhile, mainstream brands, while still
declining year over year, saw conquest levels fall 1% vs. the first
half of 2023.
"The positive jump in loyalty came at the expense of conquests,"
said Tom Libby, associate director
for loyalty solutions and industry analysis at S&P Global
Mobility. "Past years have shown that increases in both loyalty and
conquests are possible if the pool of return-to-market rises as
well. The first half of 2024 showed little to no change in return
to market, so either loyalty or conquest were going to be
affected."
Among individual brands, Tesla continues its run as the leader
in brand loyalty with a rate of 67.8% for 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 lineup with a
loyalty rate of 72.1%.
"Tesla has historically been a brand with strong loyal ties
among their consumer base, despite a limited product portfolio,"
said Palomarez. "Changes in BEV prioritization among other OEMs,
along with Tesla's directive to cut pricing when needed, has kept
households from defecting."
Additional mid-year highlights:
- General Motors leads all multi-brand manufacturers in
manufacturer loyalty for the first half of 2024, at 67.7%
- Jaguar, Land Rover, and Lincoln are among the highest year-over-year
gainers in brand loyalty, each improving rates by more than 6
PPs
- The Lincoln Nautilus is the current leader in model loyalty at
46.7%
About S&P Global Mobility
At S&P Global Mobility, we provide invaluable insights
derived from unmatched automotive data, enabling our customers to
anticipate change and make decisions with conviction. Our expertise
helps them to optimize their businesses, reach the right consumers,
and shape the future of mobility. We open the door to automotive
innovation, revealing the buying patterns of today and helping
customers plan for the emerging technologies of tomorrow.
S&P Global Mobility is a division of S&P Global (NYSE:
SPGI). S&P Global is the world's foremost provider of credit
ratings, benchmarks, analytics and workflow solutions in the global
capital, commodity, and automotive markets. With every one 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 Mobility
248.728.7496 or 248.342.6211
Michelle.culver@spglobal.com
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SOURCE S&P Global Mobility