Brand loyalty reaches 10-year high
Customer loyalty to automotive brands reached a 10-year high 52.8 percent during the first quarter of 2015, according to IHS Automotive. A number of brands also experienced 10-year highs in loyalty rates to include: Chevrolet, GMC, Infiniti, Jeep, Land Rover, Lexus, Lincoln, Mazda, Mitsubishi, Nissan, Porsche, Subaru and Volvo.
The increased number of different models within brands makes it easier for households that may need a different type of vehicle to maintain their loyalty, said Tom Libby, manager of Automotive Loyalty and Industry Analysis at IHS. The increased popularity of leasing also helped, as lessees are more brand loyal than retail owners. IHS estimates the current leasing penetration at 22.5 percent.
In addition, improved new vehicle quality is keeping consumers happy with their vehicle choice over time, which results in higher loyalty, Libby said.Download Bulletin PDF