Vehicle Supply Boosts Brand Loyalty

Top Japanese auto brands are benefitting from revived inventories as more consumers return to the market to buy cars of choice from their preferred brands, many opting for hybrids.

The sixth annual J.D. Power brand loyalty report returns Toyota to the top of the mass-market brand car ranking, and its premium line, Lexus, to lead premium SUVs. Honda tops mass-market SUV brands, followed closely by Subaru in second place.

The automakers, which already enjoyed high loyalty rates, have been able to build on their consumer bases, J.D. Power said.

“In particular, Toyota and Honda are benefitting from increased availability of hybrid vehicles, with Honda owners swapping out their gas-powered vehicles for hybrids at nearly triple the rate of the industry average,” said J.D. Power Vice President of Data and Analytics Tyson Jominy in a press release on the results.

“Lexus is also benefitting from strengthened residual values, which are helping drive loyalty for the brand despite premium brands as a whole experiencing a plateau this year.”

Toyota posted a 63% loyalty rate, Lexus a 60% rate, and Honda a 64% rate; Honda also came in second behind Toyota in the mass-market car segment at 60% loyalty.

Meanwhile, German brands dominated the premium cars segment, led for the third straight year by Porsche with a 58% loyalty rate, followed by Mercedes at a 49% loyalty rate. BMW ranks second for premium SUVs at 56%.

J.D. Power bases the study on Power Information Network data on the percentage of consumers who buy new vehicles from the same brand as their last cars. It examines statistics only from franchised dealer sales.

Ford is the only U.S. automaker to top a segment in the study, returning as the highest-ranked pickup truck brand for its third consecutive year with a 65% loyalty rate, the highest for any brand in the study. Toyota is close on its bumper at a 61% rate.