#USA #Atlanta #electric vehicles #LexisNexis #Vehicle Brand Loyalty

U.S. Vehicle Brand Loyalty Hits Five-Year Peak

According to a recent study by LexisNexis Risk Solutions, U.S. vehicle brand loyalty has achieved a remarkable high of 51.4% in 2025, indicating robust consumer affinity towards their chosen automotive brands. Despite the backdrop of increasing vehicle prices, expanding electric vehicle (EV) options, and shifts in fuel incentives, the loyalty metrics demonstrate that American consumers remain steadfast in their preferences.

Key Findings

The third annual U.S. Automotive Brand Loyalty Study has unveiled several essential insights:

• - Steady Loyalty Levels: The brand loyalty figure rose by 0.4 percentage points from the previous year, indicating a solid grip of consumers on their preferred vehicles, even as economic pressures mount.
• - Top Performers: A total of ten automotive brands successfully outperformed the industry average, illustrating a diverse response to market conditions.
• - Shifts in Fuel Preferences: Interestingly, loyalty towards electric vehicles saw a dip from 82.7% in September to 58.3% in December, coinciding with the expiration of federal EV tax credits. Conversely, loyalty towards gasoline vehicles rebounded significantly during the same period.

Influential Factors

Several factors have influenced brand loyalty among U.S. vehicle owners:

• - Affordability Challenges: Average prices for new vehicles soared past the $50,000 mark, coupled with declining incentives, which fell to just 6.7% of the average transaction price. This change poses a challenge for consumers and brands alike, potentially impacting repeat purchases.
• - Segment Performance: Despite the economic hurdles, certain vehicle segments like Large Pickup and Compact SUVs displayed increased loyalty rates, both hitting their highest loyalty levels in years.
• - Adoption of Electric Vehicles: The transition to electric vehicles has been slower than anticipated, with various policies and incentives affecting consumer behavior. Notably, overall EV loyalty slipped from 76% in 2024 to 73% in 2025, showing a need for automakers to refine their retention strategies as consumer interest shifts.

Brand Loyalty Landscape

The analysis conducted by LexisNexis offers a detailed look at how various brands performed in the competitive landscape of 2025:

• - Toyota stands at the forefront with an industry-leading 60.2% loyalty rate, aided by strong retention among its hybrid owners, which increased from the previous year.
• - Tesla, while previously dominating the market, experienced a decline in loyalty to 55.9%, reflecting the intensifying competition in the EV sector as customers explore a broader array of electric alternatives.
• - Fuel Type Dynamics: The shift from gas to alternative fuels continued to gain traction, with 18% of those transitioning from gasoline vehicles opting for alternatives, compared to just 3% in 2020.

Looking Ahead

As automakers navigate through evolving market dynamics, they must be attuned to the pressures consumers face from increasing vehicle prices and diminishing incentives. LexisNexis emphasizes the importance of delivering customer value beyond just the sales transaction, focusing on enhancing the entire ownership journey.
In conclusion, the landscape of U.S. vehicle brand loyalty is proving to be both resilient and dynamic, reflecting the ongoing changes in consumer preferences, economic challenges, and the growing assortment of vehicle types available. Brands that can adapt effectively to these shifting conditions will not only sustain customer loyalty but could enhance it as the automotive industry continues to evolve.