Report: U.S. Automotive Brand Loyalty Increased Again in 2024

U.S. consumer automotive brand loyalty increased again in 2024, trending toward pre-pandemic baselines. (Photo by Brandon Paul on Unsplash)

A study by LexisNexis Risk Solutions, a provider of data and analytics for the insurance and automotive industries, shows that U.S. consumer automotive brand loyalty increased again in 2024, trending toward pre-pandemic baselines.

The study also sheds light on shifting consumer preferences regarding engine type, as traditional reliance on internal combustion engines (ICE) wanes in favor of hybrid or electric vehicles (EVs).

Key takeaways from the LexisNexis Risk Solutions Automotive Brand Loyalty Study include:

  • Automotive brand loyalty rate rose 1.8% in 2024 to 52.6%, approaching the pre-pandemic benchmark (54.2%) observed in 2019.
  • Out of the 47 brands analyzed, 11 surpassed the industry average in brand loyalty, improving over 2023 findings, where only nine brands achieved the same result.
  • As consumers transition to EV and hybrid powertrains to satisfy their transportation requirements, legacy ICE powertrains have steadily fallen since 2019 (97.6%) to 85.2% in 2024.

PLATFORM SHIFTS CONTINUE

To track fuel type migration, the study analyzed new vehicle owners who replaced one new vehicle with another. Fuel type loyalty was determined when the fuel type of the replaced vehicle matched that of the new one.

  • ICE loyalty dropped from 97.6% in 2019 to 85.2% in 2024. Compared to 2019 (97.6%), ICE has fallen 12.4 percentage points.
  • Electric vehicle loyalty saw a slight decline, declining from 77.7% in 2023 to 74.7% in 2024.
  • Hybrid vehicle replacements jumped 5 percentage points from 2023 to 52% in 2024.

KEY OBSERVATIONS

“In light of 2023, the increased inventory on dealer lots is providing consumers with a wider range of options, which is a significant shift from the challenges they faced in 2023 when limited supply often led to brand switching,” said Dave Nemtuda, AVP, Connected Car, LexisNexis Risk Solutions. “While affordability remains a headwind for many consumers seeking new or used vehicles, the industry’s upward trend in brand loyalty is a positive signal of brand strength. This is especially critical as automakers navigate rising inventories and evolving consumer preferences, particularly toward EV and hybrid powertrains in the post-pandemic market.”

By Jef White

Jef White is the executive editor of THE SHOP magazine.