U.S. Automotive Brand Loyalty Increases in 2024, according to LexisNexis Risk Solutions

Rhea-AI Summary

LexisNexis Risk Solutions reports that U.S. automotive brand loyalty increased to 52.6% in 2024, approaching the pre-pandemic benchmark of 54.2% from 2019. The study reveals significant shifts in consumer preferences regarding engine types.

Among 47 analyzed brands, 11 exceeded the industry average in brand loyalty, improving from nine brands in 2023. The research shows a notable transition in powertrain preferences, with internal combustion engine (ICE) loyalty dropping from 97.6% in 2019 to 85.2% in 2024. Electric vehicle loyalty experienced a slight decline from 77.7% in 2023 to 74.7% in 2024, while hybrid vehicle replacements increased by 5 percentage points to 52% in 2024.

The improved brand loyalty rates are attributed to increased inventory availability on dealer lots, offering consumers more choices compared to 2023's supply. However, vehicle affordability remains a challenge as automakers navigate rising inventories and evolving consumer preferences in the post-pandemic market.

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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

FAQ

What is the current automotive brand loyalty rate in 2024 according to LexisNexis?

According to LexisNexis Risk Solutions, the U.S. automotive brand loyalty rate increased to 52.6% in 2024, up 1.8% from the previous year.

How has ICE (Internal Combustion Engine) loyalty changed from 2019 to 2024?

ICE loyalty has significantly decreased, dropping from 97.6% in 2019 to 85.2% in 2024, representing a 12.4 percentage point decline.

What is the current electric vehicle loyalty rate in 2024?

Electric vehicle loyalty declined to 74.7% in 2024, down from 77.7% in 2023.

How many automotive brands exceeded the industry average loyalty rate in 2024?

11 out of 47 analyzed brands surpassed the industry average in brand loyalty in 2024, an improvement from nine brands in 2023.

What is the hybrid vehicle replacement rate in 2024?

Hybrid vehicle replacements reached 52% in 2024, increasing by 5 percentage points from 2023.

How close is the 2024 brand loyalty rate to pre-pandemic levels?

The 2024 brand loyalty rate of 52.6% is approaching the pre-pandemic benchmark of 54.2% observed in 2019, showing a recovery in consumer brand affinity.