Brand Loyalty is Declining for Most Luxury Automakers
New research conducted by S&P Global Mobility has found that brand loyalty—measured as the percentage of buyers that go back to the same brand for their next vehicle—is falling across the luxury segment.
In this infographic, we’ve visualized the results of this research, which spans from January 2020 to April 2022.
Brand Loyalty Losers
The following brands have all experienced a drop in brand loyalty over the time period.
For additional context, we’ve also included each brand’s score in the J.D. Power 2022 Initial Quality Study. This is measured based on the number of problems experienced per 100 vehicles (PP100) in the first 90 days of ownership.
|Brand||Percentage Point Change|
in Brand Loyalty
|🇬🇧 Land Rover||-9.2||193|
|🇮🇹 Alfa Romeo||-6.6||211|
Land Rover experienced the biggest drop in loyalty, despite a better than average PP100 rating. One potential reason is timing—the brand’s premier model, the Range Rover, has been in its fourth generation since 2012. The SUV has become relatively dated, though a new fifth generation was recently revealed for the 2022 model year.
Two Volkswagen Group brands, Audi and Porsche, also fared poorly in terms of loyalty. This is somewhat surprising, as both brands offer a portfolio of both gasoline and electric models. Many competitors, such as Acura, Lexus, and Maserati, have yet to release an EV.
Brand Loyalty Winners
Three brands have managed to buck the trend, as shown below.
|Brand||Percentage Point Change|
in Brand Loyalty
We can draw parallels between Tesla and Apple, in that both have incredibly loyal followers.
For instance, between March 2021 to April 2022, 62% of buyers/households who returned to market and previously owned a Model 3 purchased a new Tesla. That’s an impressive statistic, especially when we consider Tesla’s history of build quality issues.
Maserati appears to be in the same boat. The Italian automaker has strengthened its brand loyalty by 4.3 percentage points, despite having the luxury segment’s worst PP100. Perhaps build quality matters less than we think.
Another Factor to Consider
Ongoing supply chain issues could also be contributing to wide-spread declines in loyalty. Rather than waiting several months (or in the case of EVs, years), buyers may switch to a different brand that has cars in stock.
We are still monitoring it week to week, but up to now basically worldwide, we had no issues running production.
– Joerg Burzer, Mercedes-Benz
Many automakers have reported that their supply issues are diminishing, though new economic challenges have risen. For example, surging inflation has pushed the price of a new car to record highs. Combined with rising interest rates (cost of borrowing), this could negatively impact the demand for new cars.
Visualizing Population Density Patterns in Six Countries
These maps show the population density of several countries, using 3D spikes to denote where more people live.
As of 2022, Earth has 8 billion humans. By 2050, the population is projected to grow to 10 billion.
In the last 100 years, the global population more than quadrupled. But none of this growth has been evenly spread out, including within countries.
This series of 3D maps from Terence Teo, an associate professor at Seton Hall University, renders the population density of six countries using open-source data from Kontur Population. He used popular programming language R and a path-tracing package, Rayshader, to create the maps.
France and Germany: Population Density Spikes and Troughs
Let’s take a look at how the population spreads out in different countries around the world. Click the images to explore higher-resolution versions.
France is the world’s 7th largest economy and second-most-populous country in the EU with 65 million people. But a staggering one-fifth of the French population lives in Paris and its surrounding metro—the most populous urban area in Europe.
Many residents in the Paris metropolitan area are employed in the service sector, which makes up one-third of France’s $2.78 trillion gross domestic product.
Unlike France, Germany has many dense cities and regions, with Berlin, Munich, Stuttgart, and Cologne all having over a million residents. Berlin is the most populated at 3.5 million residents in the city proper, and 6 million in the wider urban area.
That said, the relatively recent reunification of West and East Germany in 1991 meant that post-WWII growth was mostly concentrated in West Germany (and West Berlin).
Italy and Chile: Coast to Coast
In Italy, another phenomenon affects population density and urban development—a sprawling coastline.
Despite having a large population of 59 million and large metropolitan areas throughout, Italy’s population spikes are closer to the water.
The port cities of Genoa, Napoli, and Palermo all have large spikes relative to the rest of the country, as does the capital, Rome. Despite its city center located 15 miles inland from the sea, it extends to the shore through the district of Ostia, where the ancient port of Rome existed.
Meanwhile in Chile, stuck between the Andes to the east and the Pacific Ocean to the west, population spikes corroborate with its many port towns and cities.
However, the country is more concentrated than Italy, with 40% of its residents congregating around the capital of Santiago.
Turkey and Canada: Marred by Mountains and Climes
Though Chile has difficulties with terrain, it is relatively consistent. Other countries have to attempt to settle many different climes—regions defined by their climates.
Mountains to the south and east, a large, semi-arid plateau, and even a small desert leave few centers of urban growth in Türkiye.
Predictably, further west, as the elevation comes down to the Aegean and Mediterranean Seas, population spikes begin to heighten. The largest of course is the economic and cultural hub of Istanbul, though the capital Ankara is also prominent with more than 5 million residents.
In Canada, the Rocky Mountains to the west and freezing cold temperatures in the center and north account for the large country’s relative emptiness.
Though population spikes in Western Canada are growing rapidly, highly populous urban centers are noticeably concentrated along the St. Lawrence River, with the Greater Toronto Area accounting for more than one-sixth of the country’s 39 million people.
According to the World Bank, more than half of the world’s population currently lives in cities, and that trend is only growing.
By 2050, 7 out of 10 people are projected to live in cities. This congregation makes cities a beehive of productivity and innovation—with more than 80% of the world’s GDP being generated at these population centers.
It’s in this context that mapping and studying urban development becomes all the more important, particularly as policymakers try their hand at sustainable urban planning.
As Teo puts it:
“By showing where people are (and are not), they show us where political and economic power is concentrated, and perhaps where and who our governments represent.”
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