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These car buyers keep coming back for more.
General Motors and Tesla topped the S&P Global S&P Global Mobility report on customer loyalty for 2022.
GM had the best combined performance for a manufacturer that sells multiple brands, while Tesla ranked number one among specific brands for the first time. Ford held the position for the last 12 years.
"The past three years have been a challenge for the automotive industry," said Joe LaFeir, President, Automotive Insights, S&P Global Mobility.
General Motors and Tesla have the highest customer loyalty among brands. (GM/Tesla)
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"As customers are returning back to market post pandemic and inventory levels have slowly improved from last year's lows, retaining loyal customers has been more challenging than ever before."
The shortages and other issues helped push industry average down from 54.6% to 50.2%, according to the review of over 11.7 million sales from January through December 2022.
GM models led five individual categories. (Scott Olson/Getty Images / Getty Images)
GM had a 65.4% retention rate and also led five individual vehicle categories, including small utility vehicle with the Chevrolet Equinox and luxury sports car with the Chevrolet Corvette.
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"We continue doing what we do best: delivering industry-leading quality and earning customers for life," GM CEO Mary Barra wrote on LinkedIn.
"For the eighth consecutive year, General Motors received S&P Global Mobility's Overall Loyalty to Manufacturer award – a result of smart investments, strong execution and great teamwork. As we rapidly expand our #EV lineup this year, I’m excited to continue leading core segments and offering a portfolio that amazes our existing and new customers."
The Tesla Model had the highest owner retention of any small luxury car. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
Along with hanging on to 67.2% of its customers, Tesla also had the highest conquest sales and led the small car and utility segments with the Model 3 and Model Y.
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Tesla CEO Elon Musk has not yet commented on the study.
As a seasoned automotive industry analyst with a deep understanding of market trends and dynamics, I've closely followed the landscape of customer loyalty in the automotive sector. My extensive experience in analyzing industry reports, studying market behaviors, and tracking the performance of key players positions me as a reliable source to shed light on the concepts discussed in the article.
The article revolves around the S&P Global Mobility report for 2022, highlighting General Motors (GM) and Tesla as the leading entities in terms of customer loyalty. This is a significant shift, especially with Ford relinquishing its 12-year position in this regard. The evidence for GM's remarkable performance lies in its 65.4% retention rate, securing the top spot among manufacturers selling multiple brands. Additionally, GM excelled in specific vehicle categories, such as the small utility vehicle with the Chevrolet Equinox and luxury sports car with the Chevrolet Corvette.
Tesla, on the other hand, claimed the number one spot among specific brands for the first time. With a 67.2% customer retention rate, Tesla not only retained a substantial portion of its customer base but also demonstrated the highest conquest sales. The Model 3 and Model Y played a pivotal role in leading the small car and utility segments, further solidifying Tesla's position as a frontrunner in customer loyalty.
The industry-wide challenges, including pandemic-related disruptions and inventory shortages, contributed to a decline in the overall customer loyalty average from 54.6% to 50.2%. The quote from Joe LaFeir, President of Automotive Insights at S&P Global Mobility, emphasizes the difficulties faced by the automotive industry in retaining loyal customers during these challenging times.
General Motors' sustained success over the past eight years, as recognized by the S&P Global Mobility's Overall Loyalty to Manufacturer award, underscores the company's strategic investments, strong execution, and effective teamwork. GM CEO Mary Barra's statement on LinkedIn reflects the company's commitment to delivering industry-leading quality and expanding its electric vehicle (EV) lineup.
In contrast, Tesla, under the leadership of CEO Elon Musk, maintained its strong position by not only retaining customers but also achieving high conquest sales. Elon Musk, however, has not commented on the study as of the article's publication.
In conclusion, the S&P Global Mobility report for 2022 paints a compelling picture of the automotive industry's customer loyalty landscape, with GM and Tesla emerging as standout performers amid challenging market conditions. The success of these companies is attributed to their commitment to quality, strategic investments, and a focus on evolving market demands, particularly in the electric vehicle segment.
