The exceptionally low inventory levels plaguing the US new
vehicle industry continue to negatively impact brand loyalty.
According to S&P Global Mobility loyalty data, brand loyalty
dropped to just 49.5% in June, the lowest monthly result since
September 2014 and the second consecutive month below 50%. For the
past two months, then, consumers have been more likely to defect to
another brand than to remain loyal to the brand in their
Not all brands are suffering equally. Brand loyalty for the
twenty luxury brands overall has declined more than that for the
nineteen mainstream brands, as illustrated on the chart below. From
June 2019 to this past June, luxury brand loyalty decreased 5.9 PP
while mainstream results eased 4 PP.
Brands pulling down the luxury metric include Land Rover,
Infiniti, Acura, Audi, and BMW, all of which suffered double-digit
three-year declines. In contrast, Maserati and Tesla enjoyed
increases, led by Tesla’s 13 PP climb from June 2019.
One driver of the declines for seventeen of the nineteen luxury
brands is household migration to Tesla. This past June, Tesla was
conquesting more than three competitive luxury households for every
one household that defected, with the exception of Porsche; Tesla’s
conquest/defection with Porsche was 1.9, still an inflow to Tesla,
albeit smaller (these results exclude the four new luxury brands,
which have not been on the market for a sufficient period of time
for defections to reach a natural level). Tesla conquests are
defections from the other brands, which lower their brand loyalty
volume and rate.
This automotive insight is part of our monthly Top
10 Trends Industry Report. The Report findings are taken
from new and used registration and loyalty data.
The August report is now available. To download the report, please
This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.