28 January 2025
Automotive loyalty trends to watch in 2025
Article Summary
Explore automotive loyalty trends shaping the industry in 2025—including return-to-market volumes, loyalty rates, and the growing demand for utility vehicles.
As we head into 2025, automotive marketers are facing an evolving landscape where brand loyalty and shifting consumer preferences will play pivotal roles in shaping sales strategies. In this issue, we explore the latest automotive loyalty trends—including return-to-market volumes, loyalty rates, and the growing demand for utility vehicles—providing key insights to help marketers adapt and thrive in the year ahead.
In a promising sign of recovery for the automotive industry, return-to-market (RTM) volume has climbed 4.5% year over year, surpassing 2 million units as of Q3 2024. However, this volume is still 9% below pre-pandemic levels of 2.26 million units.
As we look to the rest of 2025, brand loyalty among RTM shoppers continues to be a key factor for automotive marketers. While loyalty is gradually improving, it remains barely above 50%, meaning that half of today’s RTM shoppers are likely to switch brands. This presents a significant hurdle, particularly in the luxury sector, where loyalty has only topped 50% for two quarters since 2021 (Figure 1).
As automotive industry trends continue to evolve, staying ahead of shifting consumer preferences will be key for manufacturers aiming to retain brand loyalty in an increasingly competitive market.
The following automotive loyalty trends will be crucial to watch through the rest of 2025.
2025 automotive loyalty trends
Utility vehicles > cars
Consumer demand continues to shift towards Utility vehicles and away from sedans. Sedan RTM brand loyalty 10 years ago was over 50%. Today, it is 37% and falling, meaning nearly two out of every three sedan owners are opting for a different body style in their next new purchase. The sport utility body style leads with a loyalty score of 75%—the only style above 50%—with pickups second at 49%.
Understanding this shift in preferences toward utility vehicles will be critical for marketers to align their strategies with automotive consumer trends.
Surge of new utility models on the horizon
Over 60 new vehicle launches are slated for 2025, with 36 of these being SUV models, including 20 standalone battery-electric utility vehicles. The influx of new models presents a prime opportunity for manufacturers to enhance brand loyalty.
For example, recent analyses by S&P Global Mobility indicate that brand loyalty can improve by nearly 1 percentage point following product redesigns in the compact utility segment.
Leasing is up, while lease returns are down
Leasing stabilized at 23%-25% of purchases in 2024, still below the pre-pandemic level of 30%, but a notable increase from the historical low of 17% during the semiconductor shortage in the summer of 2022. Leasing customers exhibit 15% higher brand loyalty compared to those that buy, so the upward trend will drive loyalty scores.
However, the drop in lease activity in 2022 represents a seismic shift looming over the automotive market now. Current lease returns are at historic lows and projections for the first half of 2025 suggest a staggering 41% decline in lease maturities compared with the previous year — potentially resulting in a loss of nearly 1 million vehicles from the industry.
The premium market will likely face the brunt of this decline, with a projected 46% drop in lease returns.
More electrified models will impact brand loyalty
Tesla continues to lead the industry with brand loyalty in the mid-to-high 60s, but increasing competition is softening these thresholds Meanwhile. non-Tesla electric vehicle platform loyalty has remained above 50% for two consecutive years. As more models enter the EV market, there is an opportunity to attract shoppers who are loyal to the fuel type rather than a specific brand.
We are seeing this with hybrid vehicles today. Hybrid vehicles are gaining traction, with market share exceeding 12% through the first 10 months of 2024. Their higher conquest rate compared to other fuel types makes them an attractive option for drawing customers from rival brands. A recent S&P Global Mobility study found that hybrid customers are more likely to switch from competing brands than their gasoline-fueled counterparts.
Implications for automotive marketers
Consumers have more control over the vehicle buying process than ever before because of favorable supply and a wider array of alternative fuel options. To succeed in this changing market, automotive brands and dealers can leverage loyalty data to develop audience strategies and activate marketing campaigns with optimized pricing strategies that improve customer engagement and drive sales.
Staying informed about inventory and loyalty trends will be crucial for success in 2025.
To learn more about industry loyalty trends, register for our upcoming Loyalty Awards webinar.
This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.