Ford has reclaimed its status as the most loyal automotive brand in Q2 2025, outperforming Tesla amid market challenges, rising cross-shopping, and increasing competition from legacy automakers.
Despite dealing with some significant challenges—such as a record number of recalls and repeated repair campaigns—Ford has maintained a strong hold on customer loyalty. According to data from S&P Global Mobility, Ford was named the most loyal automotive brand during the second quarter of 2025, with a buyer retention rate of 59.6%. This marks a return to its previous position after holding the top spot for 12 consecutive years until Tesla briefly took over in 2023. The broader industry saw a slight decline in overall loyalty, dropping to 51.1%, a decrease of about 1.4 percentage points from the same period last year.
What makes Ford’s resilience notable is its ability to sustain loyalty amidst a shifting market landscape. Tesla, which once led in customer loyalty, experienced a significant decline—its retention rate falling approximately 9.4 percentage points throughout 2024 into 2025, at times dipping below the industry average. Industry analysts attribute this decline partly to CEO Elon Musk's political involvement, such as endorsing Donald Trump in mid-2024, which alienated many environmentally conscious Tesla customers. Reuters reports indicate Tesla’s loyalty rate dropped from 73% in June 2024 to just under 50% in March 2025, with a partial rebound to 57.4% in May. Nonetheless, Tesla’s position remains behind major automakers like Chevrolet and Ford.
Tesla’s struggles extend beyond loyalty figures. Its U.S. electric vehicle (EV) market share has declined to 38% in August 2025—the lowest since 2017—down from its historic dominance of over 80%. The decline is fueled by increased competition from legacy automakers such as Hyundai, Honda, Kia, Toyota, and Volkswagen, which are ramping up incentives and introducing new models. Tesla’s lack of new affordable models and ongoing political controversies have contributed to this downward trend. Additionally, global vehicle sales for Tesla decreased by nearly 9% in the first quarter of 2025, the first year-over-year decline in nearly four years, reflecting increased market competition and slowing demand.
Meanwhile, General Motors (GM) continues to demonstrate strong customer loyalty. About 68.1% of customers who switch vehicles within GM’s brand portfolio or to other GM brands remain loyal to the group. Ford, which includes Lincoln, has a slightly lower loyalty rate of 58.9%. Certain models are particularly influential in driving these figures; for example, Ford’s F-Series pickups, Expedition SUVs, and Bronco Sport each boast loyalty levels exceeding 60%. Chevrolet’s Equinox crossover also performs well, with 42.7% of buyers switching from one Equinox to another, indicating that approximately 57.3% of its buyers remain loyal to the model.
Customer behaviors are shifting, with data showing increased cross-shopping activities. In the first half of 2025, conquest rates—where buyers opt for a different brand—rose notably, by 7.6% among mainstream brands and 6.2% among luxury brands. Vince Palomarez, associate director of loyalty product management at S&P Global Mobility, explains that this trend is driven by a combination of a steady return-to-market volume and intense inter-brand competition. Consumers now appear more open to exploring alternative brands than during pre-pandemic times when loyalty was typically higher. This shift reflects pent-up demand that has been building since 2020, even as vehicle prices continue to rise.
Looking ahead, the expiration of the federal EV tax incentive—currently set at $7,500—could further influence brand loyalty. The incentive is scheduled to end soon, prompting a possible surge in EV purchases before the cutoff, which may temporarily boost loyalty for brands offering qualifying models. Conversely, some buyers might delay or forgo EV purchases due to higher post-incentive costs, potentially benefiting traditional internal combustion and hybrid vehicle markets.
Overall, Ford’s position as the leading brand in customer loyalty amid a turbulent market underscores its critical role in the automotive industry. Its ability to retain customers despite recall issues demonstrates resilience, while Tesla’s recent decline highlights the risks associated with political entanglements and rising market competition. As the industry navigates evolving consumer preferences and regulatory landscapes, legacy automakers like GM and Ford are well positioned to capitalize on shifting trends, balancing innovation and loyalty in a challenging environment.
Source: Noah Wire Services