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Tesla Premium Brand With Highest Loyalty Among Customers

Tesla is positioned as the premium vehicle brand that has the most loyalty from its customers worldwide; but what could be the reason for this decline in more classic, legacy car companies? Different studies help analyze the situation.

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Historically, customers of premium or luxury brands have shown high levels of loyalty to their preferred car companies. This trend has been steadily decreasing over the years: trend changes in the mechanics of cars, price increases or a paradigm shift in the brand's DNA may have been the cause of this decrease, which directly impacts the rate of return of buyers. Porsche, Audi and Mercedes-Benz among others, have been greatly harmed by this decrease; but contrary to this trend, Tesla is the only premium manufacturer that has actually registered an increase in loyalty to the brand.

This statistic has come from S&P Global Mobility and has been compiled by Evannex. They have basically analyzed the data collected from January 2020 to April 2022. The authors of this study describe the period of time analyzed as "unusual", since just two months after starting the study the Covid-19 pandemic broke out and completely changed all the plans and forecasts estimated by the automotive brands. But maybe there is actually something else.

During the aforementioned period of time analyzed the brands suffered problems in the supply chain that had a direct impact on production: lack of stock, parts, and delays in the making and delivery of vehicles. This situation in turn determined that many customers who were thinking of renewing their car refused, for some reason, to wait several months until the registration of their unit and finally looked for an alternative in other car companies.

The boom that the electric car sector has experienced in the last two years has also been something remarkable, since more classic premium brands did not have such a wide range of "zero emission" models. This has meant that Tesla (and its very good marketing techniques, which is important to point out) has positioned itself in the eyes of many customers eager to turn to a 100% electric cars (that their favorite company could not provide yet, in many cases). This could explain why 63% of current Tesla owners – a very high number in terms of statistics - admit they would be willing to buy a model made by Elon Musk's brand again.

Tesla Model S, courtesy of Tesla Inc.

Visual Capitalist has quoted a Mercedes-Benz spokesman who has assured that "so far, basically throughout the world, we have not had problems running production". However, in the published study it is clearly concluded that the German firm has seen loyalty from its customers actually reduced by up to 7% in the last two and a half years.

Despite this issues, the different studies mentioned have not actually found the key to the reason for this general decline in loyalty to the different brands, at least in the premium sector. In addition to Tesla, the other two brands that basically "approved" the level of loyalty in general terms, were Maserati (although with an adjusted percentage; and taking into account that it currently does not have electric cars available) and Genesis, which has begun its expansion worldwide with electric models, such as the GV70, that has already arrived in Europe and will soon be available in the US.

Source: visualcapitalist

All images courtesy of Tesla Inc.

Nico Caballero is the VP of Finance of Cogency Power, specializing in solar energy. He also holds a Diploma in Electric Cars from Delft University of Technology in the Netherlands, and enjoys doing research about Tesla and EV batteries. He can be reached at @NicoTorqueNews on Twitter. Nico covers Tesla and electric vehicle latest happenings at Torque News.

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Comments

conceal.org (not verified)    August 28, 2022 - 8:27AM

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