According to the S&P Global Mobility and Automotive Loyalty Awards, published on Feb. 27, Tesla has dethroned Ford in the category of overall loyalty to make, which Ford has held for 12 years.
General Motors kept the title of overall loyalty to manufacturers for the eighth consecutive year and 19th time in the past 27 years due to inventory levels for GM’s sport utility and pickup trucks meeting consumer demand.
For the third year in a row, the industry suffered a decline in customer loyalty as consumers battled with yet another year of supply chain, production, and delivery difficulties caused by the COVID-19 pandemic and other global problems.
Automotive loyalty has been tracked by S&P Global Mobility for 27 years, which examined 11.7 million new retail vehicle registrations in the U.S. from January 2022 to December 2022. Loyalty is determined when a household purchases a second new vehicle with the same make, model, or manufacturer as the first.
According to Vince Palomarez, product manager for loyalty at S&P Global Mobility, car supply bottlenecks impacted automakers like Ford since customers were compelled to purchase elsewhere. “This is more of a reflection of the times and the state of the industry. Inventory problems have an impact. Loyalty took a hit.”
Moreover, Tesla won again in the categories of “Alternative Powertrain Loyalty to Make” and “Highest Conquest Percentage.” Since Tesla witnessed a huge gain, the data demonstrates that Tesla customers return to the market quicker than normal. If the industry average is 38 months, Tesla customers only have to wait 24 months for their purchase.
Palomarez added that the novel Tesla charging system must be taken into account. When a customer purchases the equipment, it is compatible with that brand. Highlighting that Tesla has a devoted following. They have had ten years to establish a name for themselves as an EV manufacturer, leading to widespread acclaim for the Tesla brand.
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