S&P Global Mobility Recognizes 28th Annual Automotive Loyalty Awards Winners; General Motors, Tesla and Lincoln Nautilus take Top Awards for Loyalty in 2023
- General Motors and Tesla win top loyalty awards for Manufacturer and Make categories respectively.
- Industry loyalty levels increase to 51.0% in 2023, up by 0.8 percentage points from 2022.
- Tesla dominates in BEV sector with multiple loyalty awards for the second consecutive year.
- New award introduced for 'Overall Loyalty to Model' won by Lincoln Nautilus.
- Acura, Nissan, and Mitsubishi recognized for improved loyalty in various categories.
- S&P Global Mobility's fact-based analysis tracks 12.6 million new retail vehicle registrations in the U.S.
- Automotive industry competitiveness and customer retention highlighted through loyalty awards.
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Insights
The recent announcement by S&P Global Mobility regarding the 28th annual Automotive Loyalty Awards highlights several key trends that are relevant to market research in the automotive industry. The increase in overall brand loyalty to 51.0% in 2023 is a significant metric, as it suggests a rebound in consumer confidence and brand affinity within the automotive sector. This recovery could be attributed to the industry's adaptation to post-pandemic market conditions, including supply chain stabilization and inventory improvements.
From a market research perspective, General Motors' ninth consecutive win in the 'Overall Loyalty to Manufacturer' category indicates a successful brand strategy, emphasizing the importance of a diverse and appealing product lineup. The heavy sport-utility and pickup lineup, which caters to a broad segment of the market, has likely contributed to GM's strong loyalty gains throughout 2023. This suggests that other manufacturers may need to evaluate their product mix and marketing strategies to compete effectively.
The success of Tesla in multiple categories, especially in the BEV (Battery Electric Vehicle) sector, underscores the growing consumer shift towards alternative powertrains and the brand's strong market positioning. Tesla's ability to attract ICE (Internal Combustion Engine) customers to the BEV space is noteworthy, as it reflects the brand's cross-segment appeal and potential to lead in the electric vehicle market transition. The recognition of models like the Lincoln Nautilus for model-level retention also offers insights into consumer preferences within specific segments, such as the luxury mid-size utility category.
The loyalty awards serve as a barometer for consumer sentiment and brand strength within the automotive industry. General Motors' consistent performance over the years and Tesla's repeat wins in several categories, including 'Highest Conquest Percentage', indicate a strong consumer base and effective customer retention strategies. The recognition of the Lincoln Nautilus for 'Overall Loyalty to Model' suggests that model-specific loyalty can be an important focus area for automakers, potentially influencing product development and marketing strategies.
For stakeholders, the implications of these awards are multifaceted. Investors may view the awards as indicators of brand health and competitive positioning, which could influence stock valuations and long-term investment decisions. Manufacturers can leverage this data to refine their customer retention strategies and align product offerings with consumer preferences. Additionally, the awards provide OEMs (Original Equipment Manufacturers) with actionable insights into the effectiveness of their loyalty programs, which can drive marketing and sales initiatives.
It is also worth noting the introduction of new categories such as 'Most Improved Alternative Powertrain Loyalty to Make', which Mitsubishi won with the launch of the redesigned Outlander PHEV. This reflects the industry's increasing focus on electrification and the competitive landscape of alternative powertrain vehicles. The emphasis on alternative powertrains suggests a strategic pivot within the industry that is likely to have a long-term impact on market dynamics and investment trends.
The financial implications of the Automotive Loyalty Awards are significant for the automotive industry. Strong brand loyalty can lead to increased revenue through repeat sales and a higher lifetime value of customers. For example, General Motors' continued dominance in the 'Overall Loyalty to Manufacturer' category indicates a stable customer base, which can translate to more predictable revenue streams and potentially better financial performance.
Furthermore, Tesla's dominance in loyalty and conquest rates, particularly in the BEV sector, could signal market leadership and a competitive edge that may attract investor interest. The market's response to such awards can influence stock prices as investors consider these factors in their valuation models. The awards may also affect the financial strategies of automakers, as companies with high loyalty rates might have more leeway to invest in customer experience and innovation, knowing that their customer base is relatively secure.
It's important to note that while the awards are a positive signal, they should be considered alongside other financial metrics and market conditions. Investors and stakeholders should also evaluate sales volumes, profit margins and market share to gain a comprehensive understanding of a company's financial health and growth prospects.
Acura and Mitsubishi win first awards, while Tesla repeats in several categories
Tracking consumer buying activity from January-December 2023, the industry is showing continued signs of recovery, as both retail sales and loyalty increased year-over-year.
"The last few years have shown us that customers are becoming more comfortable to consider and purchase a new vehicle outside their preferred brand," said Joe LaFeir, President, Automotive Insights, S&P Global Mobility. "However, concerted efforts from OEMs to improve retention through unique marketing initiatives, alongside improving inventory levels and great new products, are resulting in a stabilizing of loyalty levels, after several years of decline."
Steady increases in inventory levels yielded a positive impact to industry loyalty levels for the first time since 2019, according to the S&P Global Mobility analysis. Overall brand loyalty was at
General Motors' win for the 'Overall Loyalty to Manufacturer' category marks its ninth consecutive award and 20th out of the last 28th years. High migration patterns across its four brands, in addition to a heavy sport-utility and pickup lineup, led to strong loyalty gains for the manufacturer throughout 2023.
Tesla's popularity in the BEV sector helped the brand to success in both the loyalty and conquest space. For 2023, the Tesla brand scored repeat wins for 'Overall Loyalty to Make', 'Highest Conquest Percentage', "Alternative Powertrain Loyalty to Make' and 'Ethnic Market Loyalty to Make.' The popularity of both the Model 3 and Model Y among current owners, along with the brand's ability to attract many ICE customers to the BEV space, contributed to Tesla's multiple awards for the second year in a row.
In this year's Loyalty Awards, S&P Global Mobility added a new award to acknowledge a single model's leadership in model level retention, with the "Overall Loyalty to Model" award. The Lincoln Nautilus was recognized in this new category as the winner following its back-to-back recognition in 2022 and 2023 for the 'Luxury Mid-Size Utility' segment award. In 2023, more than
"These awards truly exemplify the industry's competitiveness and desire to improve customer retention. The awards reflect substantial fact-based analysis, which allows us to understand and determine conquest and loyalty rates, while providing guidance to OEM marketers and their agency partners to help improve loyalty programs and customer retention," said Vince Palomarez, product management associate director, Loyalty, at S&P Global Mobility.
Multiple brands were recognized in this year's awards for their achievements in loyalty for the first time. Acura was the winner in the 'Most Improved Make Loyalty' category, due to a healthy increase in available inventory for the brand in 2023 compared to the previous year. Nissan was awarded 'the Overall Loyalty to Dealer' award, as more than
The launch of the redesigned Outlander PHEV propelled Mitsubishi to win 'Most Improved Alternative Powertrain Loyalty to Make' award, recognizing a brand's improvement in its ability to retain an owner to both the brand and either a BEV or hybrid powertrain.
A complete list of 2023 award winners follows:
MANUFACTURER AND MAKE LOYALTY AWARDS | WINNER |
Overall Loyalty to Manufacturer | General Motors* |
Overall Loyalty to Make | Tesla* |
Overall Loyalty to Model (new award for 2023) | Lincoln Nautilus |
Ethnic Market Loyalty to Make | Tesla* |
Most Improved Make Loyalty | Acura |
Overall Loyalty to Dealer | Nissan |
Highest Conquest Percentage | Tesla* |
Alternative Powertrain Loyalty to Make | Tesla* |
Most Improved Alternative Powertrain Loyalty to Make | Mitsubishi |
SEGMENT MODEL LOYALTY AWARDS | WINNER |
Small Utility | Nissan Rogue |
Mid-Size Utility | Jeep Grand Cherokee |
Full-Size Utility | Ford Expedition |
Mid-Size Pickup | Ford Maverick |
Light-Duty Pickup | Ford F-Series* |
Heavy-Duty Pickup | GMC Sierra 2500/3500 |
Van | Chrysler Pacifica |
Sports Car | Dodge Challenger* |
Small Car | Chevrolet Bolt* |
Large Car | Honda Accord |
Luxury Small Utility | Lincoln Corsair |
Luxury Mid-Size Utility | Lincoln Nautilus* |
Luxury Full-Size Utility | Land Rover Range Rover* |
Luxury Sports Car | Porsche 911 |
Luxury Small Car | Cadillac CT5 |
Luxury Mid-Size Car | Lexus ES* |
Luxury Full-Size Car | Mercedes-Benz S-Class* |
Note: *Asterisk denotes a repeat winner from the 2022 awards.
Loyalty Awards Methodology
The S&P Global Mobility Loyalty Awards are the industry's only fact-based awards and reflect an analysis of 12.6 million new retail vehicle registrations in the
S&P Global Mobility has been tracking automotive loyalty for 28 years. Major automakers and their marketing partners rely on these data and analyses to make informed decisions related to customer purchasing behavior, including conquest and retention. For more information, please visit this link.
About S&P Global Mobility
At S&P Global Mobility, we provide invaluable insights derived from unmatched automotive data, enabling our customers to anticipate change and make decisions with conviction. Our expertise helps them to optimize their businesses, reach the right consumers, and shape the future of mobility. We open the door to automotive innovation, revealing the buying patterns of today and helping customers plan for the emerging technologies of tomorrow.
S&P Global Mobility is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information, visit www.spglobal.com/mobility.
Media Contact:
Michelle Culver
S&P Global Mobility
248.342.6211
Michelle.culver@spglobal.com
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SOURCE S&P Global Mobility
FAQ
Which company won the 'Overall Loyalty to Manufacturer' award?
Which brand repeated wins for 'Overall Loyalty to Make' category?
Which brand was recognized in the 'Overall Loyalty to Model' category?
What was the percentage increase in industry loyalty levels in 2023 compared to 2022?
Which brand won the 'Most Improved Make Loyalty' category?
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