2019 Indonesia Initial Quality Study

Design-Related Issues Become More Prevalent in Initial Quality, JD Power Finds

2019-10-29

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SINGAPORE: 29 Oct. 2019 — New vehicle owners in Indonesia continue to cite design-related problems, which now account for almost half of the total initial quality problems, according to the JD Power 2019 Indonesia Initial Quality StudySM (IQS), released today. The share of design-related problems rises steadily to 46% from 27% in 2015, and up from 39% in 2018, with 13 of the top 20 problems this year related to design. The top problems in the design-related issues are associated with seats, connectivity and air-conditioning in the vehicle.

Initial quality measures the number of problems experienced per 100 vehicles (PP100) during the first two to six months of ownership, with a lower score reflecting higher quality. In this year’s study, the industry average increases to 64 PP100 from 62 PP100 in 2018. Problems are almost equally split between design (30 PP100) and manufacturing (34 PP100) categories.

Manufacturing-related problems are declining over last year as a result of improvements in function-related issues, which account for 10.2 PP100 (16.6 PP100 in 2018). Largest improvements are seen in the following areas: speakers, front windshield wipers/washers, rear window wiper/washer and horns. In contrast, more customers are reporting noise-related issues this year (8.7 PP100) in comparison to last year (6.9 PP100). Customers who report any noise-related problem with their vehicle report lower overall quality and reliability rating (7.9 on a 10-point scale), as compared to those who do not experience these issues (8.4 on a 10-point scale).

This year’s study also finds that vehicle owners below 35 years of age cite more problems (81 PP100) than vehicle owners who are 35 or older (54 PP100). Noise-related problems mentioned by younger owners are nearly twice that cited by older customers (12.4 PP100 Vs. 6.4 PP100).

“Even though manufacturers are consistently improving vehicle quality, they must note the feedback from younger Indonesian vehicle owners, who make up 40% of all new-vehicle buyers,” said Srabani Bandyopadhyay, Country Manager, Indonesia, at JD Power. “Younger customers travel more, which results in prolonged vehicle use and increased sensitivity toward problems associated with noise, vibration, material degradation and connectivity.”

Following are additional key findings of the 2019 study:

  • Frequent commuters report more problems: Customers who drive their new vehicles more than 7,000km, on average, cite more initial quality problems (76 PP100) than owners who travel fewer than 7,000km (61 PP100). Most problems are in the categories of engine and transmission (14.4 PP100), exterior (11.3 PP100) and interior (11.3 PP100).
  • Bigger vehicles have more problems: Customers who own vehicles in segments such as SUVs and MPVs cite more problems (68 PP100), compared with owners of smaller cars (58 PP100) with more problems in vehicle interior (+6.3 PP100); features, controls and displays (+3.5 PP100); and heating, ventilation and air conditioning (+2.7 PP100).
  • Good product quality enhances likelihood to promote brand: The Net Promoter Score®[1] (NPS) measures customers’ likelihood to recommend both their vehicle make and model on a 0-10 scale. Promoters (vehicle owners who provide a rating of 9-10 points on the likelihood that they will recommend the vehicle model) average 61 PP100, compared with 92 PP100 by detractors (those who provide a rating of 0-6 points on their likelihood to recommend the model).

Study Rankings

The Daihatsu Sigra (46 PP100) ranks highest in the entry compact segment. The Honda HR-V (40 PP100) ranks highest in the entry SUV segment. Mitsubishi Pajero Sport (43 PP100) ranks highest in the SUV segment and the Mitsubishi Xpander (51 PP100) ranks highest in the entry MPV segment.

The 2019 Indonesia Initial Quality Study is based on responses from 2,230 new vehicle owners who purchased their vehicle between September 2018 and July 2019. The study includes 43 passenger cars and utility vehicle models representing eight brands. The study was fielded between March and September 2019.

The study serves as the industry benchmark for new vehicle quality by examining problems experienced by new vehicle owners within the first two to six months of ownership in two distinct categories: design-related problems and defects and malfunctions. It includes more specific diagnostic questions around eight problem categories: exterior; driving experience; features/controls/displays; audio/communication/ entertainment/navigation; seats; heating/ventilation/air conditioning; interior; and engine/transmission. The overall initial quality score is determined by problems reported per 100 vehicles (PP100), with a lower number of problems indicating higher quality. 

Media Relations Contacts

Shahilia Bhagat; JD Power; Singapore; 65-3165-0120; [email protected]

Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [email protected]

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

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[1] Net Promoter,® Net Promoter System,® Net Promoter Score,® NPS,® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.