For many luxury car enthusiasts, loyalty to a certain brand can run deep, but the tides appear to be changing. t looks like the strength of a brand name isn’t the main selling point for luxury cars
anymore. According to a recent study from J.D. Power, brand loyalty among most luxury brands is declining, while younger brands like Genesis
and Tesla are gaining momentum. Buy why would premium car buyers be less interested in the brand on the hood ornament than ever before? Read on with the car ownership experts at Jerry as we unpack this recent phenomenon.
Why are luxury car consumers eschewing brand loyalty?
The online publication visualcapitalist.com
compiled some of the data from the J.D. Power APEAL study to see what automakers were making gains in terms of brand loyalty, and which ones were losing ground. The Automotive Performance, Execution and Layout (APEAL) study is a survey that aggregates data from real-world car buyers and asks them to rank their feelings of satisfaction across 37 different categories after the first 90 days of ownership.
Another study from S&P Global Mobility reported that on average, brand loyalty among premium brands is falling across the segment.
While it's hard to pinpoint one exact reason why brand loyalty overall could be falling, automakers across the board have been struggling to meet demand due to supply chain issues.
In the luxury segment especially, it makes sense that buyers would be more willing to switch teams for a similar car that's in stock.
Luxury car companies tend to be much lower volume in production and have much longer waitlists, meaning that anyone who can’t afford to wait is out of luck.
Land Rover, for example, experienced the largest drop in loyalty in spite of positive reviews. Not only is the company competing in a highly-saturated SUV market, but the new 5th generation Range Rover that would likely bring in new customers didn’t debut in time for this study.
Which brands performed well?
Of all luxury brands, Genesis, Tesla, and Maserati were the only brands that saw an increase in brand loyalty.
In the case of Genesis, the upmarket offshoot of Hyundai has won over many new and returning customers by making reliable and affordable cars that still feel luxurious.
The brand has only been around since 2015, and perhaps its freshness and willingness to adopt electric cars have helped to propel itself to the top of the list.
In Tesla’s case, sales of electric vehicles are up globally, and Tesla just happens to be the largest seller of EVs. A commitment to vertical integration
has also helped the brand weather upsets like supply chain disruptions and inventory shortages better than most. Some older brands that have built a reputation around making high-performance models and sportscars have been slower to adopt electric cars, as much of the consumer base is looking for a very specific driving experience that you can only get from a gas-powered engine.
More and more, however, consumers are gravitating towards electric cars as an eco and wallet-friendly alternative to gas-guzzling racers.
MORE: These Are the Most Underrated German Cars
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