Loyalty to luxury car brands is declining, but Tesla is an exception

Loyalty to luxury car brands is decreasing, except for Tesla

【PhoneAuto News】Car brand loyalty reveals the likelihood of a household with a specific brand of car choosing the same company for their next purchase. Currently, General Motors is in the lead, mainly due to its diversified product portfolio, including Chevrolet, Cadillac, GMC, and Buick.

In the luxury goods industry, brand loyalty is not as high. Alysha Webb from WardsAuto stated, “In the luxury brand field, in the first four months of this year, less than half of the households purchased the same brand when returning to the market.” However, there is a notable exception – Tesla, with a brand loyalty of 68%.

From 2023 to the present, 7.5% of BMW households have switched to Tesla, higher than the previous year’s 6.8%; 7.2% of Lexus owners have chosen Tesla, compared to 5.8% last year; 8.9% of Mercedes-Benz drivers have chosen Tesla, while this proportion was 7.8% in 2022.

4.8% of Land Rover households are buying Tesla as their next car, but this figure is slightly lower than last year’s 6.1%. Nevertheless, it can be said that households with luxury cars are still purchasing Tesla.

It is worth noting that since the launch of the Model Y in early 2020, Tesla has not released any new cars. Although the product lineup remains unchanged, all models have been updated. Currently, Tesla offers a limited variety of products: it currently lacks pickup trucks, full-size SUVs, compact crossovers, and other desirable products.

Nevertheless, Tesla’s influence among other luxury car manufacturers is still noteworthy. However, this may change in the coming years. Car manufacturers such as BMW and Mercedes-Benz have recently launched a series of products and plan to introduce more products soon.

Mercedes-Benz currently has five electric vehicles available at dealerships: EQB, EQE, EQE SUV, EQS, and EQS SUV. Although these cars offer more luxury amenities and have higher prices than Tesla, more Mercedes-Benz families may prefer to continue purchasing electric vehicles from this brand. It is worth looking forward to whether these products launched by traditional car manufacturers will help retain more respective families.

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