{"id":11610,"date":"2023-10-04T03:47:22","date_gmt":"2023-10-04T02:47:22","guid":{"rendered":"http:\/\/www.spglobal.com\/mobility\/en\/research-analysis\/automotive-loyalty-rates-stall-despite-volume-increases.html"},"modified":"2023-10-04T03:47:22","modified_gmt":"2023-10-04T02:47:22","slug":"automotive-loyalty-rates-stall-despite-volume-increases","status":"publish","type":"post","link":"https:\/\/gamefootballmobileanimeiphone.com\/index.php\/2023\/10\/04\/automotive-loyalty-rates-stall-despite-volume-increases\/","title":{"rendered":"Automotive loyalty rates stall despite volume increases"},"content":{"rendered":"

Ending consecutive periods of year-over-year declines, brand
\nloyalty movement among U.S consumers halted in the first half of
\n2023, according to S&P Global Mobility analysis of new vehicle
\nregistration data.<\/p>\n

The industry's brand loyalty rate of 50.6% was identical to the
\nsame period in 2022, despite a 7% increase in return-to-market
\nvolume among consumers. The lack of change in loyalty is a positive
\nsign for the industry, which had been facing sharp decreases in
\nloyalty due to pandemic-related inventory shortages.<\/p>\n

A primary contributor to halting declines were luxury brands,
\nwhich saw a 2.7 percentage point (PP) increase in brand loyalty
\nyear-over-year. The mainstream sector, which accounts for the
\nlargest source of consumer return-to-market volume, saw brand
\nloyalty decline by 0.4 PP over the same period. Inconsistent
\nimprovements in available inventory were the primary factors in
\nloyalty gains and losses for the first half of 2023.<\/p>\n

“Rising inventory levels are helping to curb the loyalty
\ndeclines we've seen in previous years,” said Vince Palomarez,
\nassociate director, Loyalty product management at S&amp;P Global
\nMobility. “However, the distribution of inventory recovery varies
\nby auto manufacturer, making it difficult to see any significant
\ngains. Some brands were able to benefit from inventory recovery
\nwhile others were unable to.”<\/p>\n

\"\"<\/p>\n

Conquest volume benefited year-over-year, as a result of
\nloyalty's stagnation, rebounding from 2022's decline. Volume for
\nthe first half of 2023 saw a 7% increase versus the same timeframe
\nin 2022 as consumers were left to search outside of their normal
\nchannels to find a vehicle if inventory levels were low.<\/p>\n

\"\"<\/p>\n

“The last few years have shown that if a consumer has a need for
\na certain type of vehicle, they are not going to wait for their
\npreferred brand to supply it,” said Tom Libby, associate director
\nfor loyalty solutions and industry analysis at S&amp;P Global
\nMobility. “This has opened the door for more brands to capture
\nmarket share from traditional leaders. Years of investment in
\nquality and technology among the industry has evened the playing
\nfield, and we are seeing some of the smaller brands take advantage
\nof that.”<\/p>\n

Among individual brands, Tesla remains the leader with a loyalty
\nrate of 68.4% for the first half of 2023. While all models in
\nTesla's lineup have high retention rates, the Model 3 stands out as
\nthe clear leader with more than 74% of its returning consumers
\nremaining loyal to the brand – mostly by acquiring a Model Y.<\/p>\n

“Tesla has proven it has a strong connection with its customers,
\ndespite increasing competition in the BEV market,” said Palomarez.
\n“Calculated price drops and timely incentive offerings have helped
\nto boost interest and keep the brand's positive momentum
\ngoing.”<\/p>\n

Additional mid-year highlights:<\/p>\n