In the bustling auto world of 2023, Tesla has emerged as the king of brand loyalty. Topping the charts in the first half of the year, a whopping 68.4% of Tesla drivers remain loyal to the brand, eclipsing the industry’s average loyalty rate of 50.6%.
But not all Tesla models are made equal. The Model 3 sedan shines bright, boasting an impressive model loyalty rate of over 74%. And here’s a fun tidbit: many loyal Model 3 fans eventually make the leap to the Tesla Model Y.
Vince Palomarez, S&P Global Mobility’s associate director of loyalty product management, offers some insight into Tesla’s success.
He points out, “Tesla has proven it has a strong connection with its customers despite increasing competition in the BEV market.” He goes on to say, “Calculated price drops and timely incentive offerings have helped to boost interest and keep the brand’s positive momentum going.”
Yet, Tesla isn’t the only automaker making waves. General Motors (GM) and Buick Land Rover have both seen boosts in brand loyalty. While the Lincoln Nautilus and Ford F-Series have been dubbed leaders in model loyalty.
To provide some historical context: the auto industry saw brand loyalty peak at 54.7% in 2019 and 54.8% in 2020. However, a dip began in 2021 with rates dropping to 52.7% and then further to 50.6% in 2022. But here’s the catch: these declines are suspected to stem from the pandemic’s aftermath, with supply chain disruptions playing a significant role.
So, while Tesla zooms ahead, it’s evident that the world of EVs and automakers is more dynamic than ever. As we drive into the future, it’ll be fascinating to see how the landscape evolves.