Toyota, Honda, Lexus, and Porsche experience a resurgence in consumer loyalty
In the latest J.D. Power 2024 U.S. Automotive Brand Loyalty Study, Toyota, Honda, and Lexus have shown remarkable growth in customer loyalty, outpacing other brands amidst stagnation in the industry.
The study, which covers brand loyalty across five segments—premium car, premium SUV, mass market car, mass market SUV, and truck—places Toyota in a strong position. The Japanese automaker ranks highest among mass market brand car owners for a third consecutive year, with a 62.5% loyalty rate. Toyota also secures the second spot among truck owners, boasting a 60.8% loyalty rate.
Honda, another standout performer, ranks highest among mass market brand SUV owners with a 64.2% loyalty rate. Lexus, a luxury brand under the Toyota umbrella, leads premium brand SUV owners with a 60.2% loyalty rate.
These automakers' success can be attributed to their unwavering commitment to exceptional reliability, strong customer satisfaction, and a focus on technology, safety, and brand strength. Lexus, in particular, has seen a 6% increase in luxury brand satisfaction, scoring an impressive 87, reflecting high consumer regard for long-term ownership experience. Toyota consistently ranks near the top for reliability, thanks to durable models like the RAV4, Camry, and Tacoma. Honda aligns its strategies with Toyota's focus, further reinforcing customer loyalty.
Exceptional reliability and dependability, strong customer satisfaction scores, effective marketing and business strategies, and competitive warranties are the key factors driving this loyalty. Toyota and Honda vehicles' durability and resale value, coupled with their trusted reputation, encourage customers to stay with the brands longer. Moreover, many buyers, now opting for extended loans, find dependability increasingly important.
Lexus and Toyota's competitive warranties, such as Lexus's hybrid and EV components warranty up to eight years/100,000 miles, foster confidence in durability and resale value. Honda owners are swapping out their gas-powered vehicles for hybrids at nearly triple the industry average, further underscoring the brands' appeal.
Despite inventory shortages, these automakers have managed to sustain and even increase brand loyalty. As inventory levels recover, customers are returning, with Toyota and Honda benefitting from increased availability of hybrid vehicles.
J.D. Power, a global leader in automotive data and analytics, conducted the study using data from the Power Information Network. The study's calculations are based on transaction data from September 2023 through August 2024 and include all model years traded in.
Porsche ranks highest among premium brand car owners for a third consecutive year, while BMW and Mercedes-Benz trail behind, respectively. In the premium SUV segment, Lexus leads, with BMW in second place. Subaru follows closely in the mass market SUV segment. Ford maintains its position as the top truck brand.
The study only considers sales at new-vehicle franchised dealers. Notably, Lexus is benefiting from strengthened residual values, which are helping drive loyalty for the brand despite premium brands as a whole experiencing a plateau this year.
In conclusion, Toyota, Honda, and Lexus continue to shine in the automotive industry, demonstrating resilience and customer loyalty even in the face of inventory shortages. Their commitment to reliability, customer satisfaction, and long-term value sets them apart and ensures their position as preferred choices for many consumers.
Finance plays a significant role in the loyalty shown towards Toyota, Honda, and Lexus, as customers appreciate the brands' vehicles for their durability and resale value, which encourages buyers to invest in extended loans with the brands. The automotive industry's focus on technology, safety, and brand strength has also contributed to Toyota and Honda's success in the finance sector, as their competitive warranties foster consumer confidence in long-term ownership.
In the transportation industry, Toyota has shown remarkable growth, securing the highest position among mass market brand car owners and the second spot among truck owners, all thanks to their reliable and dependable models. Honda, on the other hand, focuses its strategies on aligning with Toyota's success, with Honda owners swapping out their gas-powered vehicles for hybrids at nearly triple the industry average, furthershowcasing the brands' appeal.
