US Automotive Brand Loyalty Shows Strong Recovery Trend in 2024

U.S. Automotive Brand Loyalty Shows Strong Recovery Trend in 2024

According to the latest findings from LexisNexis® Risk Solutions, a leading provider of data and analytics in the insurance and automotive industries, brand loyalty among U.S. consumers for automobiles has shown a significant resurgence in 2024. The data indicates an upward trend in automotive brand loyalty rates, which have improved to 52.6%, approaching the pre-pandemic benchmark of 54.2% seen in 2019. This increase reflects a positive shift in consumer sentiment and trust in automotive brands, paving the way for a stronger market outlook.

Shift Towards Hybrid and Electric Vehicles

The study not only highlights overall brand loyalty trends but also sheds light on evolving consumer preferences with respect to vehicle types. Notably, there is a declining reliance on traditional internal combustion engines (ICE), which have witnessed a sharp decrease in loyalty from a staggering 97.6% in 2019 to 85.2% in 2024. In a parallel context, the inclination towards hybrid vehicles has surged, with loyalty for hybrid replacements increasing by 5 percentage points from 2023, standing at an impressive 52% in 2024.

This transition is indicative of a broader societal shift, where consumers are gradually prioritizing more sustainable and environmentally friendly vehicle options. As electric vehicle (EV) adoption continues to rise, the automotive industry is witnessing profound changes, as evidenced by the recent statistics showing the slight decline in electric vehicle loyalty from 77.7% in 2023 to 74.7% in 2024.