Subaru, Toyota, Mercedes-Benz, and Tesla are in a tight race for automobile supremacy in the new 2024 American Customer Satisfaction Index (ACSI) Automobile Study. All four automakers score 83 out of 100 when it comes to customer satisfaction. Subaru and Toyota tie for first in the mass market segment, Mercedes-Benz, and Tesla do the same in the luxury brand market.
Overall, the 2024 ACSI report cites a slight improvement of customer satisfaction in the automotive segment over last year, up 1% to score of 80 (out of 100) as inventory levels return to normal. Satisfaction with both the mass-market (79) and luxury (81) segments is unchanged from the year before, while the smaller brands that comprise the “all others” measure lift the industry’s overall ACSI score by climbing 7% to 81.
Although the auto industry has shown signs of recovery from the pandemic, ACSI says it’s not all “top down, wind in their hair” for consumers.
“Despite automotive sales showing strong growth in 2023, many consumers remain cautious about making major purchases like new vehicles,” says Forrest Morgeson, Associate Professor of Marketing at Michigan State University and Director of Research Emeritus at the ACSI. “Inflation poses challenges and there are real concerns over new vehicles becoming outdated quicker because of how fast technology evolves. Plus, factors like economic uncertainty and range anxiety around electric vehicles contribute to this hesitation.”
Subaru and Toyota tie for No.1 in mass-market segment
With Subaru up 1% and Toyota down 1%, the two now tie for first place in the 2024 rankings with an ACSI score of 83. Researchers say the high marks are consistent with recent and current sales success. Subaru reported having 22 consecutive months of month-over-month sales growth through May 2023, and Toyota reported sales growth of 14.3% on a volume basis for the first half of 2024.
Subaru continues to rely on its reputation for safety and dependability, as Toyota maintains its focus on quality while leaning into hybrid vehicles. ACSI does note that Toyota has faced some complaint handling challenges, and that it will watch to see how the company’s move toward generative AI influences that performance moving forward.
Honda is third, up 1% to 82, followed by Mazda (up 1% to 81), Buick (up 1% to 80), and Kia (up 4% to 80). Ford (up 3% to 79), Volkswagen (up 4% to 78), and Ram (up 4% to 77) all post strong ACSI gains as well.
Despite Ram and Jeep (up 1% to 75) posting satisfaction gains, Stellantis brands occupy the four lowest positions of the segment, with Dodge slipping 1% to an ACSI score of 74 and last-place Chrysler idle at 71.
All aspects of the customer experience remain the same or improve for mass-market vehicles. Driving performance and vehicle safety are at 84, while dependability, exterior appearance, and mobile app quality score 83. The lowest-scoring metrics all show gains: gas mileage improves 3% to 80, technology rises 3% to 80, and warranties increase 1% to 79.
Mercedes-Benz and Tesla vie for luxury lead
There is also a tie in the luxury segment - with a two-way tie for first place between Mercedes-Benz (up 4%) and Tesla (unchanged) at 83. ACSI says Mercedes-Benz’s customers are particularly satisfied with the company’s hybrid vehicles. Meanwhile, Tesla’s pricing strategy may be helping with value perceptions, while improved complaint handling appears to offset some customer concerns in other areas over the past year.
Last year’s co-leader Lexus slips 1% to 82 and is now tied with Cadillac (unchanged) for second place. Audi is next, steady at 80, followed by BMW (down 1%) and Lincoln at 79 apiece. Acura sits in last place after tumbling 3% to an ACSI score of 77.
Although no aspect of the customer experience improves for luxury nameplates, scores are generally strong, at 80 or higher. Mobile app quality (86), driving performance (85), and mobile app reliability (85) lead the way, while interior (82), warranties (82), and gas mileage (80) are the lowest-scoring metrics.
Hybrid drivers more satisfied than gasoline drivers
The study also shows that hybrid drivers are happier than gasoline and all-electric drivers. ACSI says its data based on fuel source type show hybrid drivers (82) are more satisfied than gasoline drivers (80) and electric vehicle drivers (77). Additionally, hybrid vehicles have the highest average customer satisfaction for both the mass-market and luxury segments. Researchers say this is consistent with the rapid growth in hybrid sales, as hybrids are more fuel efficient than traditional gas-powered vehicles and also address customer concerns about travel distance with pure EVs.
“The surge in hybrid vehicle sales over the past year is a clear indication that consumers are seeking a balance between environmental consciousness and practical needs,” adds Morgeson. “Hybrid owners are telling us they feel they’re doing something positive for the environment while still maintaining the flexibility and convenience they require. As automakers continue to invest in hybrid technology, we expect this trend to continue.”
EpicVin CEO Jurgis Plikatis weighs in on the study results, and the preference for hybrids:
"I am glad to see the American Customer Satisfaction Index of 2024 point out several positive directions in the automotive industry that have come about in this period. Whereas the satisfaction relating to mass-market and luxury vehicles remained stable, the growth in customer satisfaction for smaller brands is a very promising trend," said Plikatis. "The report underlines the trend of people's increasing preference for hybrid cars, which is indeed in agreement with what we saw at EpicVIN. The higher satisfaction ratings from the hybrid segment indeed seem to reflect a consumer migration toward more 'green' alternatives with practical benefits nonetheless, such as fuel efficiency. This is a very good opportunity that such a dealer may avail of in answering the needs of a market that values eco-friendliness along with performance."
Plikatis goes on to say: "However, consumer caution in a world of economic uncertainty and rapid technological change presents challenges. At EpicVIN, we keep such concerns in mind and make transparency and ease of use on our platform possible. Taken together, the ACSI study again reinforces the need for further innovation and to listen to the consumer's preference, something to which we are committed with our seamless experience matching the changing face of the automotive landscape."
The ACSI Automobile Study 2024 is based on 12,173 completed surveys. Customers were chosen at random and contacted via email between July 2023 and June 2024. Read more about the study here.
