Category: AutomotiveChina

Premium Vehicle Customer Service Satisfaction Significantly Improves, JD Power Finds

2023-09-28

jillian.breska

SHANGHAI: 28 Sept. 2023 — Customer service satisfaction in China has improved 2 points overall to 759 (on a 1,000-point scale) from a year ago, according to the JD Power 2023 China Customer Service Index (CSI) Study,^SM released today. Satisfaction among owners of premium vehicles has significantly increased to 785, up 17 points year over year, while scores for mass market vehicles (753) declined 2 points from 2022.

The China Customer Service Index (CSI) Study, now in its 23^rd year, measures satisfaction with after-sales service at authorized dealers in the past 12 months among owners of one- to four-year-old vehicles.

The study finds that the factors for reservation, service quality and service value have the highest declines in satisfaction among both international mass market brands and Chinese domestic brands. Specifically, declines in these three factors for international mass market brands are down between four and six points from 2022 (to 746, 756 and 752, respectively) and have declined between three and five points year over year for Chinese domestic brands (to 746, 753 and 749, respectively).

“We find that owners of internal combustion engine (ICE) vehicles in China have higher service expectations and it is becoming more difficult to improve overall satisfaction among this group of owners,” said Ann Xie, general manager of the digital retail consulting practice at JD Power China. “With the continuous innovation in service of new energy vehicles (NEVs), such as the digital reservation, service package, membership integrating system and service benefits. Owners of ICE vehicles have higher expectations for services, and how to further improve service satisfaction has become a challenge.”

Following are additional findings of the 2023 study:

• ICE vehicle automakers should put more effort into app operation: In 2023, the installation rate of apps in ICE vehicles is 46.7% (up 8.9 percentage points from 2022), daily use rate is 8.7% (up 1.5 percentage points from 2022) and the appointment online rate is just 8.4% (up 0.7 percentage points from 2022). There is a wide gap in operation between ICE vehicle apps and EV apps, with EV apps’ 32.4% daily use rate and 11.1% appointment online rate. The study shows that usage of the app leads to more service needs and additional revenue for the dealership, as 57.5% of daily active owners say they will accept recommendations for additional service.
• Service package significantly improves customer satisfaction: Satisfaction averages 782 among customers with a service package who paid for service but declines to 759 among customers without a service package who paid for service. However, the ICE vehicle service package purchase rate is only 10.1%, which is 12.3% lower than that for NEV service packages (22.4%).
• First-time purchasers are more likely to receive service recommendations: Even if first-time vehicle purchasers who receive service recommendations from the service advisor do not accept them, satisfaction is 2 points higher than that of first-time purchasers who do not receive recommendations. Satisfaction among those who have accepted recommendations increases 18 points.
• Three signals of customer loss: Customers who have used unauthorized stores for routine maintenance, general repair or accident car repair are more likely to be lost to authorized dealerships. The churn rate for these lost customers is 26.5%, which is 2.3 times higher than the average for authorized dealerships. Lost customers are most likely to be high-value owners, or those who spend nearly two times more than the industry average per year on service.

Study Rankings

Audi ranks highest in customer service satisfaction among premium brands with a score of 798. Land Rover ranks second with a score of 786.Cadillac (785) and Mercedes-Benz (785) rank third in a tie.

GAC Honda ranks highest in customer service satisfaction among mass market brands with a score of 778.

FAW Hongqi, GAC Trumpchi and Geely rank highest in a tie among Chinese domestic brands and rank second among mass market brands, each with a score of 771.

The China Customer Service Index (CSI) Study measures customer satisfaction based on six factors: service team (19%); service
facility (18%); welcome and diagnostic (18%); service quality (16%); service value (16%); and reservation (12%).1

The 2023 China Customer Service Index (CSI) Study is based on responses from 37,889 vehicle owners of 45 automotive brands in 81 major cities who purchased their new ICE vehicle between December 2018 and May 2022. The study was fielded from January through June 2023.

JD Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, Asia Pacific and Europe. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts
Mengmeng Wang, JD Power; China; +86 21 8026 5719; [email protected]
Geno Effler, JD Power; USA; 001-714-621-6224; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

¹The weights are presented in rounded form, and the actual calculation is based on decimal places.

 

China Vehicle Dependability Remains Stable, JD Power Finds

2023-10-31

jillian.breska

SHANGHAI: 30 Oct. 2023 – The number of overall industry problems in China is 180 problems per 100 (PP100) vehicles, the same number of problems as the 2022 study, according to the JD Power 2023 China Vehicle Dependability Study^SM (VDS), released today.

The study, now in its 14th year, measures the number of problems experienced per 100 vehicles during the past six months by owners of 13- to 48-month-old vehicles. A lower score reflects higher vehicle quality. The study covers 177 specific problems grouped into nine major vehicle categories: exterior; interior; driving experience; features/controls/displays (FCD); infotainment; climate; seats; powertrain; and driving assistance.

According to the study, malfunction problems have increased to 106 PP100 in 2023 from 102 PP100 in 2022. There is a significant increase in malfunction problems in three categories: seats (+4.4 PP100);  interior (+2.5 PP100); and climate (+1.6). Conversely, design problems are 74 PP100, a decline of 4 PP100 from 2022.

“Although manufacturers regard quality above everything else, some do not pay enough attention to quality after the warranty period,” said Elvis Yang, general manager of auto product practice at JD Power China. “However, such problems directly affect owners’ concerns about the long-term dependability and durable quality of their vehicle. Manufacturers need to pay more attention to long-term quality and improve quality management standards.”

Following are additional findings of the 2023 study:

• Four assisted driving problems need to be addressed: The top four assisted driving problems cited by vehicle owners are blind spot monitoring; the parking cameras’ lens gets dirty easily; the accuracy of the front collision warning; and the stability of the cruise. Some of these problems can be improved through software upgrades.
• Chinese domestic brands have highest number of problems by low and medium mileage: Chinese domestic brands with mileage below 20,000 kilometers and between 40,000 – 80,000 kilometers experience more problems than other international brands,192 PP100 and 215 PP100, respectively.
• Dealers can provide system update services to improve the owner experience: Vehicle owners can upgrade functions such as navigation/maps; audio/entertainment systems; Bluetooth; and in-car smart voice assistance through multiple channels. Nearly 90% of owners say they have a better experience after updating the system in the dealer store, and 74% of owners say they have better experience after an over-the-air (OTA) technology online upgrade.

Highest-Ranked Brands and Models

Porsche ranks highest in vehicle dependability among premium brands with 137 PP100, while BMW (140 PP100) and Land Rover (140 PP100) each rank second in a tie.

FAW Toyota is the highest-ranked mass market brand with 142 PP100.Changan Ford (157 PP100) ranks second and GAC Toyota (166 PP100) ranks third.

WEY is the highest-ranked Chinese domestic brand with 180 PP100. Lynk & Co (181 PP100) ranks second, while Chery (182 PP100) and FAW Hongqi (182 PP100) each rank third in a tie.

In the 2023 study, 22 models from 14 brands are eligible for awards across 19 segments.

• BMW models ranking highest in their respective segments are BMW 5 Series; BMW 7 Series; and BMW X1.
• Changan Ford models ranking highest in their respective segments are Ford Mondeo and Ford Edge.
• FAW Toyota models ranking highest in their respective segments are Toyota Vios/Vios FS; Toyota Corolla; Toyota IZOA; and Toyota RAV4.
• Mercedes-Benz models ranking highest in their respective segments are Mercedes-Benz A-Class and Mercedes-Benz GLC-Class.
• SAIC Volkswagen models that rank highest in their respective segments are Volkswagen Polo and T-CROSS.

Other models that rank highest in their respective segments are Baojun 730; Cadillac XTS; GAC Trumpchi GS4; Geely Binyue; Honda Odyssey; Hyundai ix35; Land Rover Range Rover; Skoda Kamiq; and Toyota Camry.

The 2023 study is based on responses from 37,973 vehicle owners who purchased their vehicle between December 2018 and May 2022. The study includes 247 models from 46 different brands and was fielded from January through June 2023 in 81 major cities across China.

JD Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, Asia Pacific and Europe. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts
Mengmeng Wang, JD Power; China; +86 21 8026 5719; [email protected]
Geno Effler, JD Power; USA; 001-714-621-6224; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-inf

 

Initial New Vehicle Quality Notably Increases from 2022 in China, JD Power Finds

2023-08-30

jillian.breska

SHANGHAI: 31 Aug. 2023 – Overall new-vehicle quality in China improves in 2023, with the greatest improvement in the infotainment system category. The overall initial quality average is 204 problems per 100 vehicles (PP100), which is a notable 9 PP100 fewer than in 2022, according to the JD Power 2023 China Initial Quality Study^SM (IQS), released today.

The study, now in its 24th year, measures initial vehicle quality by examining problems experienced by new-vehicle owners within the first two to six months of ownership. Overall initial quality is determined by problems cited per 100 vehicles, with a lower number of problems indicating higher quality.

The higher quality performance this year is mainly due to the improvement of design-related problems, which is 13 PP100 fewer than last year. The study also finds that the quality of plug-in hybrid electric vehicles (PHEV) is better than that of internal combustion engine (ICE) vehicles: The overall scores for PHEVs and ICE vehicles average 194 PP100 and 205 PP100, respectively. This is the third consecutive year that PHEV quality is better than ICE quality. While PHEVs have significant advantages in lower PP100 in the exterior and interior problem categories, PP100 for PHEVs and ICE vehicles are similar in intelligence, driving experience and powertrain.

“This year, we are very pleased to see that design-related problems have significantly improved, which illustrates that automakers are carefully listening to the voice of customers and putting effort toward improving their satisfaction,” said Elvis Yang, general manager of auto product practice, JD Power China. “Owners’ complaints about vehicle quality problems are more diverse and complex now, so automakers need better understand the needs of owners and improve the quality in a more comprehensive way.”

Following are additional findings of the 2023 study:

• Infotainment system notably increases: Among the problem categories, infotainment system (-4.2 PP100) has the greatest improvement while problems in the driving experience (+1 PP100) has risen for a second consecutive year.
• Top 20 problems for ICE vehicles and new energy vehicles (NEVs) notably similar: Nearly 80% of the top 20 problems for ICE vehicles and NEVs are the same in 2023.The most problematic for both ICE vehicles and NEVs—unpleasant interior smell/odor and road noise—have been among the top three problems for the past three years.
• Vehicle owners of different national brands have different tolerances for quality problems: The Net Promoter Score® (NPS)¹ for all national brands decreases as the number of problems increases. However, owners of Korean and domestic brands are less tolerant regarding quality. The NPS for these two brands among owners who cite problems with their vehicle is significantly lower than among those who do not cite problems. Owners of Japanese and German brands have some tolerance for quality problems and there is a narrow gap in NPS between owners who cite problems and those who do not.
   

Highest-Ranked Brands and Models

Porsche ranks highest in initial quality among premium brands with 172 PP100, followed by Lexus (178 PP100) and Cadillac (190 PP100).

GAC Honda (186 PP100) is the highest-ranked mass market brand for a fourth consecutive year. Dongfeng Honda (187 PP100) ranks second. Buick and FAW Toyota rank third in a tie, each with 195 PP100.

Chery is the highest-ranked Chinese domestic brand with 200 PP100. Geely (201 PP100) ranks second and GAC Trumpchi (202 PP100) ranks third.

There are 18 models from 13 brands receiving awards across 18 segments in the 2023 study.

• Chery models ranking highest in their respective segments are Chery Arrizo 5 and Chery Tiggo 5x.
• Dongfeng Honda models ranking highest in their respective segments are Honda Civic and Honda CR-V.
• FAW Toyota models ranking highest in their respective segments are Toyota Corolla and Toyota IZOA.

• GAC Honda models ranking highest in their respective segments are Honda Fit and Honda Accord.
• Mercedes-Benz models ranking highest in their respective segments are Mercedes-Benz E-Class and Mercedes-Benz GLA-Class.

Other models ranking highest in their respective segments are Buick New GL8; Changan CS75; Dongfeng Forthing Lingzhi; Geely Boyue/BoyueX; Lexus ES; Porsche Macan; Volkswagen Tayron X; and Volvo XC90 (Import).

The China Initial Quality Study (IQS) measures new-vehicle quality by examining problems in two segments: design-related problems and defects/ malfunctions. Specific diagnostic questions include 218 problem symptoms across nine categories: features/ controls/ displays; exterior; interior; infotainment system; seats; driving experience; driving assistance; powertrain; and climate.

The 2023 study is based on responses from 34,648 owners who purchased their vehicle between June 2022 and March 2023. The study includes 230 models from 48 different brands and was fielded from December 2022 through May 2023 in 81 major cities across China.

JD Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, Asia Pacific and Europe. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts
Mengmeng Wang, JD Power; China; +86 21 8026 5719; [email protected]
Geno Effler, JD Power; USA; 001-714-621-6224; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

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

 

New Energy Vehicle Technology in China Continues to Pull Ahead, JD Power Finds

2023-08-03

jillian.breska

SHANGHAI: 3 Aug. 20233— The overall industry Tech Experience Index (TXI) Innovation Index score this year reaches a study record high of 528 (on a 1,000-point scale), an increase of 23 points from 2022, according to the JD Power 2023 China Tech Experience Index (TXI) Study,^SM released today. The index scores for new energy vehicles (NEV) and internal combustion engine vehicles (ICE) are 556 and 519, respectively. The index for NEVs expands its lead over ICE vehicles by 37 points, up 10 points from 2022.

The study, now in its fourth year, focuses on new-vehicle owners’ perceptions of 30 advanced technologies and eight basic technologies when first introduced in the market. The TXI Innovation Index—which consists of the Technology Execution Index¹ and Market Depth Index,² both of which are equally weighted—measures how effectively each automotive brand brings these technologies to market. The index combines the level of adoption of new technologies for each brand with the excellence in execution. The execution metric examines how much owners like the technologies and how many problems they experience while using them.

The study finds that the scores in the Market Depth Index is 151 and reaching record highs with an increase of 31 points from 2022. Meanwhile, Technology Execution  has notably increased, to 854 in 2023 from 829 in 2022.

“With the transformation and upgrading of China’s auto market, smart vehicles equipped with advanced technologies are becoming important choices for consumers when buying vehicles. According to this year’s China New Vehicle Intender Study,^SM the impact weight of tech experience on vehicle purchases has risen by two percentage points to 14%,” said Elvis Yang, general manager of auto product practice at JD Power China. “For automakers, installing advanced technologies in their vehicles does not necessarily mean that owners’ user tech experience will be positive. Finding what technologies owners really want and presenting them in a way they can easily be used will improve their tech experience.”

Following are additional findings of the 2023 study:

• Built-in online navigation system and intelligent voice assistant have become the two configurations with the highest awareness:  In 2023, the penetration rates of built-in online navigation system and intelligent voice assistant have reached 59% and 51% respectively, becoming the two advanced technologies with the highest awareness. These two, in addition to the onboard communication app (39%) and OTA(Over-The-Air technology) update (38%) are the top four awareness configuration combinations by vehicle owners.
• Overall quality of technologies has improved: The industry problem rates this year is 30.1 problems per 100 vehicles (PP100), which has decreased by 2.3 PP100 from 2022, reflecting improved quality. The quality for smart cockpit is 23.9 PP100, improving by 3.2 PP100, while smart driving is 10.8 PP100, improving by 5.6 PP100.
• Complaints about difficult to use/understand problems increase: Complaints related to difficult to use/understand have increased for two consecutive years, reaching 34% for smart cockpit and 36% for smart driving. These increases shows that as advanced technologies penetrate from the early market to the mainstream market, such advanced technologies are exposed to more users. Ease of use and understanding has become the key point regarding whether these technologies will become widely accepted.

Highest-Ranked Brands

Mercedes-Benz ranks highest among premium internal combustion engine (ICE) models with a score of 574, followed by Lincoln (557) and BMW (545). Lynk & Co ranks highest among mass market ICE models with a score of 559, followed by TANK (545) and GAC Trumpchi (543). NIO (629) ranks highest among premium new energy vehicles (NEVs); no other brand in this segment performs above segment average. Li Auto and Xpeng rank highest in a tie among mass market NEVs, each with a score of 643. ZEEKR (641) ranks third.

The 2023 China Tech Experience Index (TXI) Study is based on responses from 35,155 ICE vehicle owners who purchased their vehicle between June 2022 and March 2023, as well as 7,189 NEV owners who purchased their vehicle between July 2022 and January 2023. The study includes 230 ICE models from 48 brands and 76 NEV models from 36 brands. The study was fielded from December 2022 through May 2023 in 81 major cities across China.

The China Tech Experience Index (TXI) Study, which complements the JD Power China Initial Quality Study ^SM (IQS) and the JD Power China Automotive Performance, Execution and Layout (APEAL) Study, ^SM is used extensively by automakers and suppliers worldwide to provide an overview of how vehicle owners in China perceive the advanced technology features in their new vehicles and to help the industry address any problematic areas before the technologies are made widely available across automotive portfolios, thus improving the future owner experience.

JD Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, Asia Pacific and Europe. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts
Mengmeng Wang, JD Power; China; +86 21 8026 5719; [email protected]
Geno Effler, JD Power; USA; 001-714-621-6224; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

¹ The Technology Execution Index is formulated from respondents’ overall experience and the total problems experienced with the advanced technologies they have and use. The index weights are derived from survey responses using multivariate linear regression. As a result, the index weights could differ by study market or study year.

²The Market Depth Index is a measurement of the penetration level of advanced technologies. The calculation encompasses the popularity of equipping and usage of advanced technologies.

 

Satisfaction Gap between New Mass Market and Premium Vehicles Continues to Grow, JD Power Finds

2023-08-16

jillian.breska

Overall satisfaction with new mass market vehicles has improved, but the gap between mass market and premium brands continues to widen, according to the JD Power 2023 China Automotive Performance, Execution and Layout (APEAL) Study,^SM released today. The overall APEAL satisfaction score is 738 (on a 1,000-point scale), up 8 points from 2022, the highest score in the past four years. The score among premium brands has increased to 757 points this year from 744 points in 2022. The gap between premium brands and mass-market international brands (738 points) has widened to 19 points from 12 points last year and the gap with domestic brands (722) is 35 points, up from 715 points year over year.

The study, now in its 21st year, examines owners’ assessments of their new-vehicle experience within the first two to six months of ownership, specifically their emotional attachment to and level of excitement with their new vehicle. The resulting data is used extensively by manufacturers to help them design and develop more appealing models.

“With the growth of new energy vehicle (NEV) sales, the competition between internal combustion engine vehicles (ICE) and NEVs is becoming fiercer,” said Elvis Yang, general manager of auto product practice at JD Power China. “Makers of ICE vehicles need to pay more attention to vehicle design and experience to maintain their position. Meanwhile, second- and third-tier cities are the main areas to purchase ICE vehicles. Automakers need to accurately grasp the preferences of this consumer group, optimize configuration experience to increase product appeal.”

Following are key findings of the 2023 study:

• ICE and NEV each have their own strengths: Although the APEAL score for ICE vehicles has improved this year—738 vs. 730 a year ago—the gap with NEVs (776) has expanded to 38 points. The breakthrough directions of the two types of vehicles are different. NEVs score higher in design; setting up and starting; and driving experience, while traditional ICE vehicles score higher in fuel economy and driving range; security; in-vehicle infotainment system; and driving comfort.
• New energy SUVs are significantly ahead of gas-powered SUVs in design: Year over year, the APEAL score for gas-powered SUVs (736) has increased 6 points, while the score for new energy SUVs (783) has significantly improved 38 points. Design is the main reason for the gap between the two types of SUVs. Design is also the main reason for buyers to reject gas-powered SUVs. Buyers prefer several design aspects for new energy SUVs rather than those available on gas-powered SUVs, such as the color, and the size and shape of the side windows.
• First-time buyers in second-tier cities pay more attention to the practicality of functions: As the main market for ICE vehicles, first-time purchasers in second-tier cities are mostly young people with rigid demands. Daily commuting is their main vehicle use. Among these buyers, APEAL attributes scoring higher this year are infotainment systems, up 14 points from 2022, and keeping you safe, up 13 points. More practical functions such as safety configuration; controlling the vehicle in and out of tight spaces; assisted driving functions; and infotainment systems are the most frequently cited features used by these buyers.

Study Rankings

Porsche ranks highest in APEAL among premium brands with a score of 763. Audi (760) ranks second and BMW (758) ranks third.

Buick is the highest-ranking mass market brand with a score of 755. Dongfeng Nissan (747) and GAC Honda (747) each rank second in a tie.

Geely ranks highest among Chinese domestic brand with a score of 744. Chery (741) ranks second and Roewe (740) ranks third.

The segment-level APEAL awards by brand are for Audi A6L, Audi Q3, Buick All New GL8, Buick Envision Plus, Buick Excelle GT, Changan CS35 Plus, Changan CS75, Chery Tiggo 7 Plus, Chery Tiggo 8, Geely Emgrand and Geely Preface.

Other models that rank highest in their respective segments are BMW 3 Series, Dongfeng Forthing Lingzhi, Honda Crider, Honda Inspire, Mercedes-Benz GLC-Class, Porsche Cayenne, and Toyota Wildlander.

The 2023 China Automotive Performance, Execution and Layout (APEAL) Study measures owners’ emotional attachment to and level of excitement with their new vehicle across 37 attributes in 10 vehicle experience groups: exterior; setting up and starting; getting in and out; interior; performance; driving feel; keeping your safe; infotainment; driving comfort; and fuel economy.

The study is based on responses from 35,155 owners of gas-powered vehicles who purchased their new vehicle between June 2022 and March 2023. The study includes 230 models from 48 different brands and was fielded from December 2022 through May 2023 in 81 major cities across China. Additionally, data from the JD Power China New Energy Vehicle—Automotive Performance, Execution and Layout (NEV-APEAL) Study,^SM which measures the APEAL satisfaction of NEV owners, is included for comparison in this study.

To learn more about the China Automotive Performance, Execution and Layout (APEAL) Study, please contact: [email protected]

JD Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, Asia Pacific and Europe. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts
Mengmeng Wang, JD Power; China; +86 21 8026 5719; [email protected]
Geno Effler; JD Power; USA; 001-714-621-6224; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

 

Overall New Energy Vehicle Owner Satisfaction Decreases, JD Power Finds

2023-08-24

SHANGHAI: 24 Aug. 2023 — Overall customer experience satisfaction among new energy vehicle (NEV) owners is down 26 points year over year to 770 (on a 1,000-point scale), according to the JD Power China New Energy Vehicle Customer Experience Value Index (NEV-CXVI) Study,^SM released today. While automakers continue to introduce NEVs and take more market share, the gap between customers’ expectations and their subsequent experiences has expanded and satisfaction has declined.

 

The study utilizes the CXVI to evaluate the experience of NEV owners between two and 12 months of ownership. Index scores are based on evaluations of different customer groups on a variety of measures at three NEV customer experience stages: purchase, usage and after-sales service. The study focuses on providing the automotive industry with specific action guidelines for satisfying emotional needs of customers in various scenarios and is designed to provide advisement to continuously build a more efficient and holistic customer-oriented experience.

 

The overall CXVI score for Chinese domestic brands in 2023 is 768, down 27 points from 795 in 2022, while the index score for international brands is 779, which is 23 points lower than the score in 2022.

 

The study also finds that the usage experience stage (775) is the peak of the entire ownership experience, while purchase experience scores 764, ranking lowest among the three stages. In the purchasing experience stage, the purchase negotiation–specifically unclear price, terms or benefits–ranks the lowest with a score of 758.

 

“Previously, satisfaction scores were more of a reflection of service quality” said Ann Xie, general manager of the digital retail consulting practice at JD Power China. “Now we find that Increased satisfaction leads to more referrals, which brings more sales leads and orders to increase profitability.”

 

Following are additional findings of the 2023 study:

• Direct sale brings a better user experience: The CXVI score for direct-sale brands is 787, which is significantly higher than for the dealership brands (771) and mixed-sale brands (761). The direct-sale brands have advantages in both the NEV purchase and usage stages because of price clarity and professional instruction. However, in the after-sales service stage, the mixed-sale brands score 783, which is 3 points higher than the direct-sale brands, because the mixed-sale brands meet the basic needs better, such as convenience and repair.
• Satisfaction higher among first-time purchasers for after-sales service: Service satisfaction among first-time purchasers is 774, significantly higher than that of repurchasers (759) and additional purchasers (754). Additionally, the experience of first-time purchasers for service initiation, service process and service quality are better than that of repurchasers and additional purchasers.
• Owners with NEVs in the price range of 200,000-300,000 yuan have higher recommendation intentions:  Slightly more than one-third (35%) of owners of NEVs with a purchase price of 200,000 to 300,000 yuan are willing to share comments on their vehicle and service with others, which is a higher percentage than among owners of NEVs in the range of 100,000 to 200,000 yuan (30%) and more than 300,000 yuan (31%). Additionally, brands with high NEV-CXVI scores (higher than 775), the average Net Promoter Score[1] reaches 35, and the NPS of brands with low NEV-CXVI scores (below 759) is 19.

 

 

Highest-Ranked Brands

ZEEKR ranks highest in customer experience value among Chinese brands with a score of 792. DEEPAL (791) ranks second and NIO (789) ranks third.

Mercedes-Benz ranks highest in customer experience value among international brands with a score of 794. Tesla (788) ranks second.

 

The 2023 study is based on responses from 5,059 new energy vehicle owners who purchased their vehicle between April 2022 and March 2023. The study includes 49 brands and was fielded in April-May 2023 in 81 major cities across China.

The 2023 China New Energy Vehicle Customer Experience Value Index (NEV-CXVI) Study measures the purchase stage across five categories (in order of importance): delivery (21%); purchase plan (19%); customer follow-up (19%); product experience (15%); information collection (14%); and showroom experience (13%).The measures for the usage stage are (in order of importance): energy service (40%); customer service (31%) and customer equity (29%); and the measures for the service stage include service initiation (35%); service quality (35%) and service process (30%).

JD Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, Asia Pacific and Europe. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

 

Media Relations Contacts

Mengmeng Wang, JD Power; China; +86 21 8026 5719; [email protected]

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

 

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

 

[1] 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.

 

The Quality of Newly Launched NEVs Lags Behind Carry-Over Models, JD Power Finds

2023-06-01

jillian.breska

SHANGHAI: 1 June 2023 – The overall average quality of new energy vehicles (NEVs) this year, measured as problems per 100 vehicles (PP100), is 173 PP100, an increase of 21 PP100 from 2022, according to the JD Power 2023 China New Energy Vehicle Initial Quality Study (NEV-IQS),^SM released today. A lower number of problems indicates higher quality.

The study, first published in 2019, is based on the annual JD Power U.S. Initial Quality Study^SM (IQS). The NEV-IQS measures new-vehicle quality by examining problems experienced by NEV owners in China within the first two to six months of ownership.

The study shows that the number of NEV-related problems have increased. The quality problems of newly launched NEV models is 184 PP100, which is 15 PP100 higher than that of carry-over models. The quality of all-new models lags that of carry-over models in almost all categories measured in the study, especially in driving experience, which is 3.6 PP100 higher than carry-over models. Additionally, the number of quality problems in carry-over models has also increased year over year, up 20 PP100 from 2022.

“The competition in the NEV market is heating up, with various automakers constantly launching new models and improving the product matrix to seize market share,” said Elvis Yang, general manager of auto product practice at JD Power China. “The quality of new models is lower than of carryover models and a shorter R&D period and adaptation of complex technological configuration are contributing to this decline. Automakers need to pay more attention to user experience and quality management as they accelerate the launching of new models.”

Following are some key findings of the 2023 study:

• Interior smell and excessive road noise are most-often-cited problems: Unpleasant interior smell (9.3 PP100) is cited most often by NEV owners. This and excessive road noise (7.5 PP100) are two problems that have been cited among the top three quality problems for five consecutive years. Additionally, these two problems are also among the most-often-cited problems by owners of  fuel-powered cars, reflecting the fact that vehicle owners in China have similar quality requirements for their vehicles regardless of power source.
• Midsize SUV segment is most competitive between BEV and PHEV: Currently, the midsize SUV segment has the largest sales proportion of battery-operated vehicles (BEVs) and plug-in hybrid electric vehicles ( PHEVs) and it is also the segment with the most newly launched NEVs. Compared with 2022, sales of midsize BEV SUVs have increased 8.7% and sales of midsize PHEV SUVs have increased 7.3%. With regard to PP100, midsize PHEV SUVs perform better on basic quality (e.g., driving experience, climate, seats), while midsize BEV SUVs perform better on powertrain.*
• Proportion of replacement purchases grows fastest: In 2023, the proportion of replacement purchase customers has grown the fastest in NEV market and the average transaction price is higher than that for first-time purchase and additional purchase customers. However, the overall quality satisfaction of replacement purchase vehicles is worse, 180 PP100, higher than for first-time purchases (by 6 PP100) and additional purchases (by 15 PP100).

Highest-Ranked NEV Models

Models that rank highest in their respective segments are:

• Small BEV segment: Leap Motor T03
• Compact BEV segment: NETA U
• Midsize BEV car segment: XPeng P5
• Midsize/Large BEV SUV segment: Volkswagen ID.4 X
• Premium BEV segment: NIO ES6
• Mass Market PHEV segment: AITO M5

In the Premium PHEV and BEV MPV segments, criteria for awards were not met, thus no awards are given this year.

The China New Energy Vehicle Initial Quality Study (NEV-IQS) measures new-vehicle quality by examining problems experienced by NEV owners in two segments: design-related problems and defects/ malfunctions. Specific diagnostic questions include 236 problem symptoms across 10 categories: features/ controls/ displays; exterior; interior; infotainment system; seats; driving experience; driving assistance; powertrain; battery/ charging; and climate.

The study is based on responses from 7,191 vehicle owners who purchased their vehicle between July 2022 and January 2023. The study includes 76 models from 36 different brands, among which 53 models have sufficient samples. The study was fielded from January through March 2023 in 81 cities across China.

JD Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, Asia Pacific and Europe. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts
Mengmeng Wang, JD Power; China; +86 21 8026 5719; [email protected]
Geno Effler, JD Power; USA; 001-714-621-6224; [email protected]

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*Sales data: Sales volume of 81 cities surveyed during the delivery period of qualified samples (July 2022-January 2023).