U.S. Vehicle Brand Loyalty Climbs to Five-Year High in 2025, According to LexisNexisRisk Solutions

Core Insights - U.S. vehicle brand loyalty remains steady at 51.4% in 2025, reflecting resilience despite challenges such as higher vehicle prices and evolving electric vehicle (EV) options [1][5][6] Brand Loyalty - The analysis indicates that brand loyalty is critical, with overall U.S. vehicle brand loyalty holding at 51.4%, a 0.4 percentage point increase year-over-year [2][5] - Toyota leads the industry with a loyalty rate of 60.2%, supported by stronger hybrid retention, while Tesla's loyalty has decreased to 55.9% due to increased competition in the EV market [6][5] Influencing Factors - Average new vehicle prices exceeded $50,000, and incentives dropped to 6.7% of the average transaction price, impacting consumer purchasing behavior [5][11] - Fuel-type loyalty among EV repurchasers fell significantly from 82.7% in September to 58.3% in December, while gasoline loyalty increased from 80% to 83% during the same period [5][6] Market Dynamics - Ten automotive brands surpassed the industry average loyalty rate of 51.4% in 2025, indicating varied performance across brands [5] - Loyalty in key segments like Large Pickup (54.8%) and Compact SUV (53.0%) increased, reaching their highest levels in years despite rising costs [11] EV Adoption and Retention - EV brand loyalty decreased from 76% in 2024 to 73% in 2025, highlighting the need for automakers to adapt their retention strategies as consumer fuel preferences evolve [11] - The transition to EVs is slower than anticipated due to policy uncertainties and changes in emissions standards [11] Ownership Experience - As EVs reduce the need for routine dealer service visits, automakers are encouraged to enhance post-sale engagement and deliver value throughout the entire ownership lifecycle [11]