Vehicle brand loyalty, approaching former pandemic levels, demonstrates a recovering consumer confidence in the auto industry.

In a recent mid-year report, LexisNexis Risk Solutions has highlighted potential instability in the automotive industry, citing factors such as tariffs and geopolitical tensions as potential causes for fluctuations in consumer brand loyalty.

The report, which analysed vehicle ownership and purchase data, revealed that consumer new vehicle brand loyalty reached 53.3% between January and June 2025, marking the highest level since the pandemic and a slight increase from 51.2% in December 2024.

However, Tesla, once a leader in brand loyalty, has seen a decline. Tesla owners historically replaced their Tesla EVs with new Tesla vehicles 88% of the time, but this has now decreased to 75%, as consumers express increasing satisfaction with other EV brands. As a result, Tesla now ranks behind six other car manufacturers in terms of brand loyalty.

The report does not specify the six car manufacturers with higher brand loyalty rates than Tesla, nor does it provide details on the other car manufacturers with high brand loyalty rates.

Affordability challenges, such as higher import tariffs, higher prices, and reduced discounts and incentives, can affect brand loyalty, according to the report. Higher import tariffs and prices can potentially weaken consumers' loyalty to specific brands.

Toyota, on the other hand, has the highest brand loyalty rate among all car manufacturers, with an overall rate of 65.4%. RAV4 owners showed particularly strong loyalty to Toyota, with 69.4% choosing Toyota when purchasing a new car.

The average transaction price of a new vehicle in June 2025 was $48,907, a 1.2% increase from June 2024.

In Germany, the brand with the highest loyalty rate among new car buyers remains unidentified in the provided search results. However, Mercedes-Benz is noted to have a very stable sales and customer base, suggesting strong loyalty, despite some customer concerns about price and quality. No direct statement naming the top brand by loyalty was found in the given sources.

The report underscores a shift in consumer preferences towards a wider variety of EV brands, suggesting a potentially unstable future for industry leaders like Tesla. The findings emphasise the importance of maintaining quality and affordability in an increasingly competitive market.

Vehicle brand loyalty, approaching former pandemic levels, demonstrates a recovering consumer confidence in the auto industry.