Tesla now leads the auto industry by a wide margin in terms of brand loyalty, according to a new report from banking and investment giant Citi.
With increasing competition in the automotive sector, especially in the electric vehicle market, winning a loyal fan base is proving more important than ever. Luckily, a new report from banking and investment group Citi says Tesla is doing just that. Not only has Tesla surpassed traditional brand loyalty leader Ford, but it’s further from the industry average than ever before.
As originally reported, Investing.com, an analysis completed by Citi found that Tesla has a brand loyalty rate of about 67%, just over 20 percentage points higher than the industry average of 46%. This means that unlike the industry average, which is more likely to lose customers than to retain them, Tesla retains the majority of customers it acquires from other brands. Citi found that the Tesla Model 3 had the highest brand loyalty rate and the Tesla Model S the lowest.
Citi’s analysis echoes a series of similar reports earlier this year that showed Tesla had propelled Ford to the top loyalty brand spot.
According to Citi, Tesla’s brand loyalty appears to be on the rise after a brief decline in 2021. However, it should be noted that many brands suffered a similar drop in loyalty in the same year.
Moving forward, as more EV products enter Tesla’s top markets, including North America, Europe and China, the company’s goal will be to maintain its current royalty rate and protect it from competitors. And fortunately, with new Model 3 and Model Y variants on the horizon and Cybertruck poised to take the North American truck market by storm, Tesla is well positioned to maintain its dominance. I have.
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