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US automotive brand loyalty rates show positive shift
The industry's brand loyalty rate through June stands at 52.5%, reflecting a 1.9 percentage-point improvement over the same period in 2023, marking the first year-over-year increase since 2020.
Among individual brands, Tesla continues its run as the leader in brand loyalty with a rate of 67.8% for the first half of 2024. While all Tesla models retain more than 60% of their previous owners, the Model 3 remains the leader in the brand's lineup with a loyalty rate of 72.1%.
"Tesla has historically been a brand with strong loyal ties among their consumer base, despite a limited product portfolio," said Palomarez. "Changes in BEV prioritization among other OEMs, along with Tesla's directive to cut pricing when needed, has kept households from defecting."