Although the last time a new car was launched was in 2020, Tesla’s small car list does not reduce users’ preference for this car company.

Only selling a few car models, Tesla is enough to make customers fascinated - Holding an important index that makes luxury car manufacturers desire - Photo 1.

Illustration

Automobile brand loyalty refers to the rate at which consumers return to purchase products from a brand they previously owned. And now in the automotive sector, GM is leading the way thanks to a diverse portfolio of brands including Chevrolet, Cadillac, GMC and Buick.

In the premium segments, brand loyalty is uncommon and has even become a thing of the past for most automakers. According to WardsAuto expert Alysha Webb, “In the luxury brand segment, in the first 4 months of the year, less than half of customers returned to the old brand. However, there is an exception for Tesla with a 68% brand loyalty rate.”

Through 2023, 7.5% of BMW-owning customers will switch to Tesla, up from 6.8% the previous year. Lexus also had to sadly watch as 7.2% of its former customers chose a Tesla this year, up from 5.8% in 2022. And 8.9% of Mercedes-Benz drivers chose a Tesla this year. today, compared to 7.8% in 2022.

Land Rover found 4.8% of customers purchased a Tesla as their next car, but this is down slightly from 6.1% last year. Even considering this scenario, luxury car owners are looking to buy Tesla cars.

Only selling a few car models, Tesla is enough to make customers fascinated - Holding an important index that makes luxury car manufacturers desire - Photo 2.

The problem here is that Tesla has not launched a new vehicle since the Model Y in early 2020. All of its products have been revised although the product line remains unchanged: premium sedan, popular crossovers and sedans. Currently, Tesla doesn’t offer a wide range of products: it’s currently lacking pickup trucks, full-size SUVs, small crossovers, and other desirable products.

This is indicating that Tesla’s influence among other luxury automakers is remarkable. This will gradually become a threat to luxury car manufacturers in the electric vehicle business. Automobile manufacturers such as BMW and Mercedes have gradually responded by launching a series of new product categories and plan to introduce more models in the near future.

Mercedes-Benz currently has 5 electric car models at dealers: EQB, EQE, EQE SUV, EQS and EQS SUV. Although these cars offer more luxury amenities than Teslas and come at a higher price, many Mercedes households may want to stay with the brand when purchasing their electric vehicle. And whether these product launches from established automakers will help retain more of their respective households will take more time to answer.