Automotive Brand Loyalty Rates Show Positive Shift, according to S&P Global Mobility

SOUTHFIELD, Mich., August 28, 2024 – Industry brand loyalty rates trended upward in the first half of 2024 following several years of flat or declining values, according to a new S&P Global Mobility analysis of new vehicle registration data through the first half of the year.

The industry’s brand loyalty rate through June stands at 52.5%, reflecting a 1.9 percentage point (PP) improvement over the same period in 2023, marking the first year-over-year increase since 2020. The year-over-year increase in loyalty is a positive sign for the industry after several years of lower loyalty levels due to inventory shortages and post-pandemic recovery.

More than half of all brands in the industry saw a year-over-year increase of 1 percentage point (PP) or better. This group included both mainstream and luxury brands, which saw increases of 1.9 PPs and 1.4 PPs, respectively. Growing inventory levels and a strong pipeline of return-to- market households were the primary factors in loyalty gains for the first half of 2024.

“Last year we saw a big jump in the number of households returning to market for a new vehicle, but the inventory was lacking,” said Vince Palomarez, associate director, Loyalty product management at S&P Global Mobility. “This year, return-to-market volume remains consistent; however, inventory levels are up more than 40%, so households have more opportunity to remain loyal to their previous brand.”