Loyalty Awards:  General Motors and Tesla Take Top Spots

General Motors and Tesla are tops when it comes to consumer loyalty, according to S&P Global Mobility's 27th annual Automotive Loyalty Awards.   (The awards previously fell under the IHS Markit name, but IHS Markit is now part of S&P Global Mobility.)

S&P Global Mobility's 27th annual Automotive Loyalty Awards

In the 27th installment of the awards, General Motors received the 'Overall Loyalty to Manufacturer' award (for the 8th year in a row) and Tesla won for 'Overall Loyalty to Make' (last year that award went to Ford.)  Tesla won multiple awards in the study, and Mercedes-Benz and Subaru found themselves among the award winners for the first time in several years.  

Industry Challenges

The latest award cycle tracked consumer buying activity from January to December 2022, a time during which researchers say the industry faced many obstacles as fewer customers returned to market and loyalty fell for the third year in a row.

"The past three years have been a challenge for the automotive industry," said Joe LaFeir, President, Automotive Insights, S&P Global Mobility. "As customers are returning back to market post pandemic and inventory levels have slowly improved from last years lows, retaining loyal customers has been more challenging than ever before."

With all the industry-wide shortages, many consumers shopped other brands if they're previously chosen brand didn't have sufficient stock.  Researchers say overall industry average loyalty dropped from 54.6% in 2019 to 50.2% in 2022.

General Motors

Calendar year 2022 marks the eighth consecutive win for GM in the Overall 'Loyalty to Manufacturer' category, and 19th win in the last 27 years.  Researchers point to consistent demand for GM sport-utility and pickup offerings along with rising Inventory levels as factors in strong loyalty gains for the manufacturer throughout 2022. The Chevrolet Equinox, Tahoe, Silverado HD, Bolt and Corvette all won model loyalty awards.

Tesla 

On top of its 'Overall Loyalty to Make' recognition, Tesla scored repeat wins for 'Highest Conquest Percentage' and 'Alternative Powertrain Loyalty to Make.'  Researchers say the combination of an active return-to-market consumer base and majority share of BEV sales were contributors to Tesla loyalty performance this year. However, the brand resonance with ethnic consumers was a key driver in its recognition for loyalty improvement and diversity retention.  

S&P Global Mobility says ethnic consumers represented 40% of all personal vehicle registrations for 2022, an increase of two percentage points from the previous year. For more than 15 years, Ethnic customer retention has been part of the loyalty awards program in various forms. For 2022, S&P Global Mobility has combined the diverse consumer base under one category 'Ethnic Market Loyalty to Make' to reflect the combined growth in the ethnic market over the last several years. Tesla was the winner of this year's award as 52% of its loyal volume came from ethnic consumers.

"Ethnic buyers have increased their market share in the industry every year for the last decade, making them an important audience in building loyalty success for the foreseeable future," said Vince Palomarez, product manager, Loyalty, at S&P Global Mobility.

Mercedes-Benz 

Mercedes-Benz, with the successful launch of the EQS Sedan and SUV, won the 'Most Improved Alternative Powertrain Loyalty to Make' award, which recognizes a brand's improvement in its ability to retain an owner to both the brand and either a BEV or hybrid powertrain.

Subaru

A big win for Subaru this year with its first win in the 'Overall Loyalty to Dealer' category - as 38 percent of Subaru owners returning to market acquired their next vehicle from the same dealer. The Subaru Outback won a model award.

2022 Award Winners

Note: *repeat winner from the 2021 awards.

Award Methodology 

This year's awards (formerly under the IHS Markit moniker) are based on a fact-based analysis of 11.7 million new retail vehicle registrations in the U.S. during the 2022 calendar year. Loyalty is determined when a household that owns a new vehicle returns to market and acquires another new vehicle of the same make, model or manufacturer. The newly acquired vehicle may be either a replacement or an addition to the household fleet.

S&P Global Mobility has been tracking automotive loyalty for 27 years. Major automakers and their marketing partners rely on these data and analyses to make informed decisions surrounding related to customer purchasing behavior, including conquest and retention. The Automotive Loyalty Awards from S&P Global Mobility are the industry only fact-based awards of their kind.

Pic:  https://www.carpro.com/hs-fs/hubfs/2023-Chevy-Silverado-ZR2-grille-carpro.j.jpg?width=2560&height=1920&name=2023-Chevy-Silverado-ZR2-grille-carpro.j.jpg