Second Annual Brand Loyalty Study Highlights
Brand Affinity Returns to Near Pre-Pandemic Levels
ATLANTA, Jan. 13,
2025 /PRNewswire/ -- LexisNexis® Risk Solutions,
a leading provider of data and analytics for the insurance and
automotive industries, announced that U.S. consumer automotive
brand loyalty has increased in 2024, trending toward pre-pandemic
baselines. The study also examines the shifting consumer
preferences regarding engine type as traditional reliance on
internal combustion engines (ICE) wanes in favor of hybrid or
electric vehicle (EV). Through automotive brand loyalty study,
LexisNexis Risk Solutions offers automakers (OEMs) a unique view of
the relationship between U.S. consumers and their changing vehicle
preferences.
U.S. automotive brand loyalty rate rose
1.8% in 2024 to 52.6% vs. the pre-pandemic benchmark (54.2%)
observed in 2019.
Key Takeaways
- The 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, LexisNexis® Risk Solutions 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."
About LexisNexis Risk Solutions
LexisNexis® Risk
Solutions harnesses the power of data, sophisticated analytics
platforms and technology solutions to provide insights that help
businesses across multiple industries and governmental entities
reduce risk and improve decisions to benefit people around the
globe. Headquartered in metro Atlanta, Georgia, we have offices throughout the world
and are part of RELX (LSE: REL/NYSE: RELX, a global provider
of information-based analytics and decision tools for professional
and business customers. For more information, please
visit www.risk.lexisnexis.com, and www.relx.com.
Media Contacts:
Andrew
Cao
LexisNexis Risk Solutions
Phone: +1 650.232.9469
andrew.cao@lexisnexisrisk.com
Dean Carney
Brodeur Partners for LexisNexis Risk Solutions
Phone: +1.646.746.5607
Dcarney@brodeur.com
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SOURCE LexisNexis Risk Solutions
