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.
New Vehicle Fuel Type Loyalty CY2024. Fuel type loyalty was determined when the fuel type of the replaced vehicle matched that of the new one. Hybrid vehicle replacements jumped 5 percentage points from 2023 to 52% in 2024. Source: LexisNexis® Risk Solutions Loyalty Market Reporting, as of December 2024
New Vehicle Build Loyalty CY 2024. U.S. consumer automotive brand loyalty has increased in 2024, trending toward pre-pandemic baselines. 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. Source: LexisNexis® Risk Solutions Loyalty Market Reporting, as of December 2024
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 [email protected]
Dean Carney Brodeur Partners for LexisNexis Risk Solutions Phone: +1.646.746.5607 [email protected]
SOURCE LexisNexis Risk Solutions
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