J.D. Power is sharing the results of its 2023 U.S. Automotive Brand Loyalty Study. Researchers say it shows that brand loyalty slipped among new vehicle buyers this year. Researchers attribute that to having more choices. They say that as new-vehicle inventory and sales rebound to pre-pandemic levels, more U.S. buyers are choosing to forego loyalty to a specific brand.
“As vehicle availability increased and more choices hit the market for consumers, loyalty among brands as a whole saw a decline this year,” said Tyson Jominy, vice president of data & analytics at J.D. Power. “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.'
That said, the highest-ranking brands continued to do well in this year's study, with Porsche, Toyota and Ford each rank highest in respective segments for a second year in a row.
"Now that some of those issues have eased, consumers are looking to get behind the wheel of something different and are no longer remaining as loyal to a brand. However, many of the highest-ranking brands perform similarly year after year. When vehicles deliver an experience that meets owner expectations, such as by offering superb build quality, owners are likely to reward brands with their loyalty," said Jominy.
Porsche ranks highest among premium brand car owners for a second consecutive year, with a 56.8% loyalty rate. Porsche had this to say about its #1 Premium brand ranking:
“Customer loyalty is of course, a team effort,” said Joe Lawrence, Executive Vice President and COO of Porsche Cars North America (PNCA). “From the assembly lines to our colleagues within our independently owned and operated Porsche Centers across America, we are grateful for their efforts as we provide our customers a world class experience.”
Mercedes-Benz (50.5%) has the second highest loyalty rate among premium brands.
Volvo ranks highest among premium brand SUV owners with a 56.5% loyalty rate. BMW (56.1%) ranks second.
Toyota ranks highest among mass market brand car owners for a second consecutive year, with a 60.0% loyalty rate. Honda (55.0%) ranks second.
Subaru ranks highest among mass market brand SUV owners with a 61.1% loyalty rate. Toyota (60.5%) ranks second.
Ford ranks highest among truck owners for a second consecutive year, with a 64.6% loyalty rate, the highest loyalty rate in the study. Toyota (60.4%) ranks second.
The fifth annual J.D. Power study uses data from the Power Information Network to calculate whether owners bought the same brand when they traded in for a new vehicle. Customer loyalty is based on the percentage of vehicle owners who picked the same brand they had before. The study only includes sales at new-vehicle franchised dealers.
Transaction data from September 2022 through August 2023, which included all model years traded in, was used to to make the 2023 calculations.
Photo Credit: Porsche.