JD Power: COVID-19 pandemic makes drivers more loyal to the brands they already own

The auto industry has changed dramatically during the COVID-19 pandemic, and surprisingly, according to J.D. Power, the influential organization released its 2021 Brand Loyalty Study on Thursday.

According to J.D. Power, the study “measures the percentage of car shoppers who choose to trade in the same brand of vehicle as their trade-in.” The good news for auto companies is that the pandemic has increased consumer loyalty to them as drivers rely on their pre-existing relationships with dealers and place greater trust in familiar brands.

So how did mainstream automakers perform? It is reported that Subaru has topped the list for the third consecutive year with 61.8% of the votes. Other mainstream brands in the top five include Toyota (61.1%), Honda (59.3%), Ram (56.8%) and Ford (53.9%).

As for premium brands, Lexus ranked first with 51.6%, followed by Porsche (50.2%), Mercedes-Benz (47%), BMW (45.6%) and Audi (45.5%). The brands that made the most progress were Acura and Mazda – the former increased by 7.1% and the latter increased by 5.9%.

So why is this happening? In the past 18 months, consumers are less likely to go directly to dealers, they will order online or buy remotely. So they seem to be more willing to do business with familiar dealers and brands rather than try new things.

This is the third year that JD Power has released the U.S. Auto Brand Loyalty Study. The results of this study also include all vehicles traded by drivers. The transaction data for this report ranges from June 2020 to May 2021.