A mid-year 2025 report from LexisNexis Risk Solutions indicates that the new vehicle brand loyalty rate reached 53.3% in the period between Jan. 1 and June 30, up 1.2 percentage points from 52.1% at the end of December 2024. The new figure is close to the 2019 pre-COVID levels of 54.3%.
The LexisNexis Risk Solutions Automotive Brand Loyalty Study maps consumer loyalty to the vehicles they drive. Using proprietary loyalty methodology, data scientists analyzed U.S. consumer vehicle purchases and garages. The study explores whether owners purchase a vehicle with the same brand or switch to a competitor.
Toyota, buoyed by the fierce brand loyalty of its RAV4 drivers, leads vehicle manufacturers with a 65.4% brand loyalty rate overall, and a 69.4% brand loyalty rate for RAV4. Nine other auto brands marked consumer loyalty scores higher than the mid-year average rate of 53.3%.
On the other hand, some automotive brands saw loyalty ratings going down. Tesla, for example, was in the top position in 2024 with 60.9% brand loyalty. In the first half of 2025, Tesla fell to seventh with a rate of 54.2%. Tesla owners disposing of and replacing their Tesla vehicle with another electric vehicle have historically stayed loyal to Tesla 88% of the time. Those same owners are now only 75% loyal, increasingly choosing competitive electric vehicles from other brands.
Expected Tariffs and Global Disruption of Supply Chain
Higher tariffs on the horizon have added significant strain on U.S. auto manufacturers’ supply chains. The global economy, and the U.S. in particular, relies on automotive parts, semiconductors and vehicles from Canada, Mexico and China. To mitigate the risk of exorbitant vehicle prices at points of purchase and during production, automakers are shifting sourcing and operations to keep production and supply chains going amidst great consumer uncertainty.
Geopolitical tensions impact the flow of critical components, including vehicle batteries and raw materials, creating serious vulnerabilities and challenges to automakers. This fragility is apparent in delays and inventory shortages, leading to fluctuations in consumer brand loyalty and an unstable industry.
EV Adoption
U.S. consumers are transitioning more slowly to electric vehicles than expected. At the same time, automakers are suffering from future unpredictability, plagued by policy changes at the federal level, emissions standards, the rollback of incentives, and governmental regulations. Consumers who remain brand loyal may elect to stay with an internal combustion engine over an EV model made by the same brand. Average transaction prices (ATP) of EVs were at a record high in April 2025 of $59,255, and fell to $57,236 in May 2025, according to Cox Automotive. Considering buyers who may wish to purchase EV models from their favorite brand subsequently may choose an alternative fuel type, automakers increased incentives by 19.4% in May.
Price Impact on Brand Loyalty
In June 2025, consumers also saw new vehicle prices soar to $48,907, according to Cox Automotive, pushing the ATP to a 1.2% increase year over year. Incentives for new vehicles were 6.9% of the average transaction price. Over the last several months, one popular segment, compact SUVs, saw higher import tariffs, decreased purchase incentives and flat prices, contributing to less affordability and a suggested reduction in brand loyalty and value, Cox reported.
The automotive industry shake-up in the first six months of 2025 creates uncertainty for consumers and OEMs alike. The next months will be challenging, with OEMs having to find new ways to generate sales.
