The automotive industry in the United States is slowly recovering to pre-pandemic levels of inventory and sales. This recovery has had an impact on consumer behavior regarding brand loyalty. According to the latest study from J.D. Power, more car buyers are now prioritizing variety over steadfast brand loyalty.
The study reveals that supply chain disruptions, which limited vehicle choices and forced owners to keep their cars for longer, contributed to this shift in loyalty. As these issues are resolved, more options are becoming available to customers. Despite this trend away from brand loyalty, certain automakers have managed to maintain a strong hold on their customer base.
In the premium segment, Porsche takes the top spot among premium brand car owners for the second consecutive year, with an impressive 56.8 percent loyalty rate. Mercedes-Benz follows closely behind with a solid 50.5 percent loyalty rate. In the premium SUV segment, Volvo tops the chart with the highest loyalty rate of 56.5 percent, while BMW comes in second with 56.1 percent.
In the mass-market segment, Toyota emerges as the leader among mass-market brand car owners with a robust 60.0 percent loyalty rate. Honda replaces Kia in the second position with a 55 percent loyalty rate. Subaru retains its crown in the mainstream SUV segment with an impressive 61.1 percent loyalty rate. Ford continues to dominate the truck segment for the second year in a row with a loyalty rate of 64.6 percent.
According to Tyson Jominy, the VP of data and analytics at J.D. Power, “As vehicle availability increased and more choices hit the market for consumers, loyalty among brands as a whole saw a decline this year. Additionally, owners were tied down to their vehicles for longer than normal due to ongoing supply chain disruptions, and as a result, were more likely to experience problems with their vehicles.”
The J.D. Power Brand Loyalty Study uses data from the Power Information Network to assess whether car owners stick with the same brand when trading in their current vehicle for a new one. Now in its fifth year, the study covers brand loyalty in five distinct segments: premium car, premium SUV, mass-market car, mass-market SUV, and trucks.