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Brand Loyalty Still Drives Automotive Sales Success, According to J.D. Power

Brand loyalty is a key objective of automakers not only because it leads to a…

  • August 4, 2019

Brand loyalty is a key objective of automakers not only because it leads to a customer repurchasing or leasing another vehicle from the same manufacturer but because that customer is more likely to recommend the brand to friends and family members shopping for a new vehicle.

To acknowledge this key component of the automotive lifecycle, J.D. Power has announced the results of the inaugural J.D. Power 2019 U.S.

Automotive Brand Loyalty Study, with Lexus (luxury) and Subaru (mass market) ranking highest in their respective segments.

Other luxury brands in top five include Mercedes-Benz, BMW, Porsche and Audi.

Other mass market brands in the top five include Toyota, Honda, RAM and Ford.

“Customer loyalty is perhaps the most important metric for manufacturers because it incorporates many factors that lead customers to become brand ambassadors,” said Tyson Jominy, Vice President of Data & Analytics at J.D. Power. “When a brand can connect emotionally with owners through the vehicle’s content, capabilities or prestige level, owners are much more likely to come back and purchase that same brand again.”

Subaru ranks highest among mass market brands—and highest overall—with a loyalty rate of 61.5%. Lexus ranks highest among luxury brands with a 47.6% loyalty rate.

Using data from the Power Information Network, the study calculates whether an owner purchased the same brand after trading in an existing vehicle on a new vehicle purchase or lease.

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