2023 BMW 2 Series Gran Coupe in blue

In the third quarter, 12% of luxury car shoppers considered a Tesla product. That’s three percentage points lower than in the second quarter — the largest drop in consideration among luxury brands.

BMW drives all brands as shoppers look at the brand.

The Kelley Blue Book Brand Quarterly Report is a consumer perception survey that also weaves into shopping behavior to determine how a brand or model stacks up with its industry competitors on the twelve primary factors of a consumer’s purchasing decision.

Dropping may have a limited effect

Tesla’s decline may not mean much in the short term. Its shoppers behave differently than other car buyers. Many traditional luxury car shoppers search multiple brands before making a purchase, while many Tesla buyers only look at Tesla.

The company rose to become America’s best-selling luxury car maker without topping the Brand Watch survey. But its slide to sixth place could also be a sign that increased competition from other automakers is eroding its advantage in the electric car market.

CEO Elon Musk’s controversial takeover of Twitter and provocative political comments on Twitter may also have brought down Tesla.

BMW comfortably took the title, with 22% of luxury car shoppers considering a BMW product. Lexus and Cadillac tied for second place with 17%. Fifteen percent of shoppers considered an Audi, while Mercedes came close to the top five with 14 percent.

Top 10 Most Valuable Brands

Brand Percentage of shoppers who thought of it
BMW 22%
Lexus 17%
Cadillac 17%
Audi 15th%
Mercedes Benz 14%
Tesla 12%
Acura 12%
buick 11%
Infiniti 8%
origin 8%

Two Tesla models dropped out of the top ten

Shopping consideration for the Model 3 sedan was down 10% from the second quarter. Tesla’s latest model, the Model Y, has fallen off the list of the top 10 most-shopped luxury cars for the first time in two years, along with Tesla’s oldest, the Model S.

Despite some dilution in mind, the Cadillac Escalade remained the number one luxury car most shopped for for the third consecutive quarter.

In fact, luxury SUV shopping has taken over again, with 67% of luxury car shoppers considering buying an SUV. Six SUVs dominated the top 10 luxury cars in terms of shopping.

Top 10 Most Thinking Models

Affordability, fuel efficiency is becoming increasingly important

The survey also asks buyers about the factors that led to their decision. The top three factors – durability/reliability, safety and driving comfort – remained unchanged from last quarter. However, driving performance and affordability grew more important to shoppers in the third quarter.

Fuel efficiency narrowly missed the top five factors — number one in the luxury class — last quarter.

The most important considerations for new car shoppers

Rank consideration
1 Durability / Reliability
2 safety
3 Driving comfort
4 driving performance
5 Affordability

Leave a Reply

Your email address will not be published. Required fields are marked *