Toyota Retains Most Of Its Consumers

Anthony Fontanelle
December 10, 2007

Japanese automaker Toyota is on the verge of becoming the world's largest automaker. Earlier this year, it was already reported that the Japanese auto making juggernaut has already surpassed General Motors in terms of the number of vehicles sold across the world. In order for Toyota to become the largest automaker by next year, it needs to continue attracting consumers to their dealerships while retaining their previous customers.

This is what Toyota is doing better than all other automakers according to a recent study conducted by J.D. Power and Associates. The 2007 Customer Retention Study as it is called is a measure of how automakers were able to retain their consumers. The research firm measures this by finding out the percentage of previous consumers who have replaced their vehicles from the same brand. This study is now on its fifth year and last year's topnotch brand is Toyota making it a back-to-back achievement for the Japanese automaker.

According to the study, even with the massive recalls called by the Japanese automaker, they still managed to retain more consumers this year than they did last year. Toyota's score increased by one percent this year compared to 2006 according to the study. The automaker's retention index is now at 64.6 percent. Meanwhile, Toyota's luxury division Lexus is ranked second with 63.0 percent and Honda is a close third with its 62.8 percent score. Both Lexus and Honda did not move from their spot last year.

Neal Oddes, the director of product research and analysis for J.D. Power and Associates, pointed out that the higher customer retention index achieved by Toyota is a great feat as new vehicle sales has gone down this year. "Toyota's high customer retention rate is particularly notable, considering that new-vehicle sales have declined in the past year," said Oddes. "Toyota maintains its high retention rates by providing high-quality vehicles and service to its existing customers, which in turn generates favorable word-of-mouth recommendations that attract new customers."

Three Japanese auto brands are at the top which just goes to show that Asian automakers, especially Japanese ones, are giving American automakers a run for their money. Apart from the achievements by Toyota, Lexus, and Honda which also has its luxury division in Acura, the makers of Acura CL Acc cabin filters, other Japanese automakers are also making great strides forward.

Mazda and Suzuki both have increased their consumer retention scores. Since 2003, Mazda has increased its score by a nine percentage point while Suzuki increased by 19. Suzuki's increase since 2003 is the biggest among automakers in the five years that the study was conducted.

Source:  Amazines.com