Category: AutomotiveMexico

Vehicle Dependability in Mexico Improves but Infotainment a Key Issue for Younger Owners, JD Power Finds

2023-11-21

MEXICO CITY: 22 Nov. 2023 — While the pandemic upended automotive industries around the globe, vehicle dependability in Mexico proved to be a bright spot, according to the JD Power 2023 Mexico Vehicle Dependability StudySM (VDS), released today. The study shows an overall industry average of 213 problems per 100 vehicles (PP100), though infotainment remains the category with the most problems (39 PP100), particularly among younger customers.

The study, now in its ninth year, measures problems experienced during the past 12 months by original owners of vehicles in Mexico after 12-36 months of ownership. For 2023, the study was redesigned to more accurately capture 184 specific problem areas across nine major vehicle categories: exterior; driving experience; features/controls/displays (FCD); driving assistance; infotainment; seats; climate; interior; and powertrain. Overall dependability is determined by the number of problems experienced per 100 vehicles, with a lower score reflecting higher quality.

“Millennials¹ and Gen Z owners have grown up in the digital age and their expectations are higher when it comes to infotainment operating correctly,” said Gerardo Gomez, senior director and country manager at JD Power de Mexico. “This is a critical opportunity for automakers to make progress in this area and improve the overall owner experience, as these two generations will make up a greater share of vehicle buyers in the future.”

When examining frequency of problems by generation, the study reveals that Gen X and Boomer vehicle owners identify fewer problems (204 PP100 and 156 PP100, respectively), while Millennial (232 PP100) and Gen Z (213 PP100) owners cite the most problems. Across all generations, infotainment was the most problematic vehicle category. Driving assistance was the least problematic.

The study also finds that infotainment updates are key to boosting customer satisfaction. Although infotainment is a problematic area, a software update from the automaker can improve the experience. Among 33% of owners whose vehicles received a software update since purchase, infotainment performed “much better than expected.” That figure declines to 20% among owners whose vehicles had not received any infotainment updates.

Highest-Rankings Brands

Mercedes-Benz ranks highest in vehicle dependability among premium brands with a score of 136 PP100. Audi ranks second (147 PP100).

Ford ranks highest in vehicle dependability among mass market brands with a score of 137 PP100. Suzuki (175 PP100) and Toyota (175 PP100) each rank second in a tie.

Segment Awards

Listed below are the highest-ranked models in each segment.

Compact: Toyota Prius
Entry Sub-Compact: Chevrolet Spark
Crossover: SEAT Arona
Midsize SUV: Nissan X-Trail
Entry SUV: Ford EcoSport
Upper Sub-Compact: Toyota Yaris

The 2023 Mexico Vehicle Dependability Study is based on responses from 6,440 original owners of 2020 to 2022 model-year vehicles. The study was fielded from October 2022 through July 2023.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit https://mexico.jdpower.com/.

Media Relations Contacts
Fabiana Duran; Mexico City; +52 55 1012 0885; [email protected]
Geno Effler, JD Power; U.S.A.; 714-621-6224; [email protected]

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

1 JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-Present). Millennials (1982-1994) are a subset of Gen Y.

 

Service Quality Continues to be Most Important Factor to Achieve Vehicle Owner Satisfaction in Mexico, JD Power Finds

2023-09-07

jillian.breska

MEXICO CITY: 7 Sept. 2023 — New-vehicle owners are very satisfied with the level of service franchised automotive dealers are delivering in Mexico, according to the JD Power 2023 Mexico Customer Service Index (CSI) Study,^SM released today. Satisfaction among owners of premium vehicles is 899 (on a 1,000-point scale) and 872 among owners of mass market vehicles.

The study has been redesigned this year to include a greater emphasis on measuring different service types, such as valet or traditional service visits. Other key additions include more detailed insight into customer preferences for various aspects of the service visit; factors that drive customer trust with dealers; and reasons why customers chose a dealership instead of a nondealer facility for service. 

“The quality of vehicle service at dealerships continues to be a key factor in increasing customer satisfaction,” said Gerardo Gomez, senior director and country manager at JD Power de Mexico. “More than half of mass market vehicle owners—and 42% of premium vehicle owners—return to the selling dealership for servicing and expect vehicle repairs to be performed correctly the first time around. Dealerships need to understand that this is key for customers.”

Following are some key findings of the 2023 study:

• Warranty coverage/no-charge services continue to increase: Market conditions are driving manufacturers to continue to improve the warranty service conditions. For example, nearly half (48%) of premium brand customers are receiving service via their warranty, without having to pay for any service. The percentage of customers of mass market brands who receive service via their warranty is 28%, down from 23% in 2022.
• Dealer service market has contracted: A reduction in frequency of dealer service visits and amount spent per visit, coupled with fewer one- to three-year-old vehicles on the road, has led to a potential significant contraction of the total value market from a year ago. This is estimated on the current service visits to authorized dealers and which could generate revenue of 12,480 million Mexican pesos—which is 17.7 % lower than a year ago.
• Back to basics: Once their vehicle is ready for pick-up, customers expect to be escorted to its location by facility personnel or have the vehicle retrieved for them, both resulting in high customer satisfaction. Satisfaction drops 136 points when facility personnel merely point out the location of a customer’s vehicle, which was experienced by nearly 10% of customers.
• Mass market dealerships closing satisfaction gap: Satisfaction among customers of premium brand dealerships is higher across all dealer processes than among customers of mass market brand dealerships. However, the overall satisfaction gap between premium and mass market dealerships has narrowed to 27 points. Customers of premium brand dealerships have higher satisfaction than those of mass market brand dealerships for service quality (+37 points); service advisor (+26); and service facility (+25).
• Influencing customer trust: New in this year’s study is a breakdown of attributes that affect customer trust with dealerships. Findings indicate that reassurance by dealerships that they will perform complex repairs correctly is affecting the quality of service, which is the main driver of overall customer trust with dealerships (20%). This is followed by customers’ ease and safety of dropping off their vehicles (17%). Premium brand dealerships score lowest in trust among customers when it comes to providing honest communication, while mass market dealerships lag in taking responsibility when a mistake is made and effectively resolving it.
• Room for improvement: Dealers can improve satisfaction by focusing on key aspects of the customer service journey, including vehicle pick-up; service facility; and service initiation. When an advisor handles the payment for service, there is a 69-point increase in satisfaction—but only 41% of premium brand dealerships and 29% of mass market brand dealerships achieve this task. There is a 47-point increase in satisfaction when wireless internet is accessible and a 32-point increase when advisors meet customers at their vehicles upon arrival.

Highest-Ranking Brands

BMW ranks highest in the premium segment with a score of 919. GMC (913) ranks second and Mercedes-Benz (904) third.

Jeep and Kia rank highest in the mass market segment, each with a score of 900. Honda (893) ranks third. 

Now in its eighth year, the Mexico Customer Service Index (CSI) Study is a comprehensive analysis of the service experience among owners of one- to three-year-old vehicles and evaluates customer satisfaction with their authorized dealer by examining five key measures (in order of importance): service quality (31%); service facility (20%); service initiation (18%); service advisor (17%); and vehicle pick-up (15%).

This year’s study is based on the evaluations of 4,906 new-vehicle owners of 2020, 2021 or 2022 model-year vehicles who took their vehicle for service to an authorized dealer facility in the past 12 months. The study was fielded from October 2022 through July 2023.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit https://mexico.jdpower.com/.

Media Relations Contacts
Fabiana Duran; Mexico City; +52 55 1012 0885; [email protected]
Geno Effler, JD Power; U.S.A.; 714-621-6224; [email protected]

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

 

Dealers and Independent Service Facilities Vying for Half of Service Market in Mexico, JD Power Finds

2023-06-20

jillian.breska

MEXICO CITY: 23 June 2023 — The gap in customer service satisfaction between franchised dealers and independent auto service providers narrows to 28 points (on a 1,000-point scale) this year, according to the JD Power 2023 Mexico Customer Service Index—Long-Term (CSI-LT) Study,^SM  released today. Customer satisfaction with franchised dealers is 872 compared with 844 for independent service facilities. While independent service facilities are closing the gap, they still score lower than franchised dealers in all five factors of the study.

At the same time, 50% of vehicle owners show no loyalty to either authorized dealerships or independent service providers, presenting a marketplace that is up for grabs. These vehicle owners switch between the two service providers, however, dealerships’ percentage of business increased 3 percentage points year over year. Based on the type of service needed, owners show a propensity to visit authorized dealers for more complex work than independent service shops, such as heating/ventilation/air conditioning (11.3% of dealer work); recalls (10.4%); collision repair (6.9%); and audio/entertainment system (5.1%). Owners who switch are choosing to take their vehicle to independent service facilities for more basic wear-and-tear work, such as lube/oil/filter change (65.5%); tire replacement (21.3%); and tire repair (16.2%).

“The service business in Mexico is extremely competitive with both authorized dealers and independent service shops vying for half of the marketplace,” said Gerardo Gomez, senior director and country manager at JD Power de Mexico. “While satisfaction is similar among customers of both, customers who aren’t loyal to a particular provider emphasize that dealers and independent service shops must pay close attention to what matters most to get their business. Simple facility improvements or offering a mobile messaging app to schedule service appointments and alert customers of service completion can help with the acquisition and retention of customers.”

As drivers reach pre-pandemic levels commuting in Mexico, the overall service business is shrinking, according to the study. The total amount that customers are spending on servicing their vehicle for the year decreases 27% from a year ago. The reduction in overall spending is influenced by an 11% decrease in the total number of visits to service facilities, declining to 3.17 visits per year vs. 3.41 visits in 2022.

Following are some key findings of the 2023 study:

• Vehicle owners more satisfied when alerted of needed service: A dealership alert informing an owner of an upcoming service improves satisfaction by 28 points when compared with an owner’s learning about service intervals on their own. Owners are most satisfied when proactive dealership service facilities contact them (893) than owners who have to review the factory maintenance schedule to learn when the next service should happen (865). Providing this type of helpful advice is currently only being done 16% of the time by dealerships. “This is a tremendous opportunity for dealerships to reach owners and improve satisfaction levels for their service,” Gomez said.
• Satisfaction improves when scheduling an appointment via an app: Providing an option to schedule a service appointment through a mobile messaging app instead of a phone call can help dealers improve customer satisfaction by 25 points.
• Offering transportation is important: New to the study is the measurement of dealers and independent service providers offering to provide transportation for owners while their vehicle is being serviced. Customers of dealers have satisfaction that is 32 points higher when transportation is offered—but that occurs only 42% of the time. When transportation is offered to customers of independent facilities, satisfaction increases 29 points—but transportation is offered only 27% of the time.
• Areas for satisfaction improvement: When a service advisor is attentive to a customer’s needs—which happens 94% of the time—satisfaction increases 71 points. This key performance indicator (KPI) is the only factor that has appeared in the top 4 KPIs each of the past four years. Other areas for notable satisfaction improvement include offering wireless internet (+49 points); cleaning up the shop (+16) and providing complimentary snacks (+15).

Highest-Ranking Brands

Toyota ranks highest in overall satisfaction among franchised dealers for a second consecutive year with a score of 913. Audi (891) ranks second and Mazda (890) ranks third.

The Mexico Customer Service Index—Long-Term (CSI-LT) Study, now in its fifth year, has been redesigned to hyper-focus on today’s current service experience among owners of three- to 12-year-old vehicles. The study measures satisfaction with service at franchised dealer or aftermarket service facilities for maintenance or repair work among owners and lessees. It evaluates customer satisfaction with their dealer or non-dealer service center by examining five key measures (in order of importance): service quality (33%); vehicle pick-up (19%); service advisor (18%); service initiation (15%); and service facility (14%).

The study is based on the evaluations of 3,409 interviews with new- and used-vehicle owners in Mexico about their three- to 12-year-old vehicles. The study was fielded from October 2022 through February 2023.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit https://mexico.jdpower.com/.

Media Relations Contacts
Fabiana Duran; Mexico City; +52 55 1012 0885; [email protected]
Geno Effler, JD Power; U.S.A.; 714-621-6224; [email protected]

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

 

Broken Promises on Vehicle Deliveries Stall New-Vehicle Sales Satisfaction in Mexico, JD Power Finds

2023-04-27

MEXICO CITY: 27 April 2023 — Missed vehicle deliveries are putting the brakes on buyer satisfaction, which should motivate dealers to improve their communications throughout the shopping experience in order to buoy overall satisfaction, according to the JD Power 2023 Mexico Sales Satisfaction Index (SSI) Study,^SM released today. A key performance indicator (KPI) for satisfaction is the sales delivery process which declines to 893 (on a 1,000-point scale) from 897 a year ago. The promised delivery day and time is met 88% of the time by dealers, 2 percentage points lower than a year ago and the only KPI to decline in the study. Delivering a customer’s new vehicle on the day and time promised improves satisfaction 164 points.    

“Solutions abound for how dealerships can improve satisfaction during the shopping experience and one way is through proactive communication,” said Gerardo Gomez, senior director and country manager at JD Power Mexico. “Clearly communicating with shoppers throughout the vehicle delivery process can have a tremendously positive effect on sales satisfaction. And, communicating with customers through their preferred channel—including text messaging or technology at the dealership—can keep them more satisfied with the sales process and less inclined to defect to another retailer.”

The study reveals modest year-over-year increases in two areas that make up 25% of the sales satisfaction index: paperwork (+5 points) and working out the deal (+2). “There are a couple of bright spots in the sales satisfaction experience this year, however the number of areas that improved is one fewer than a year ago. Brands need to treat this as an inflection point by addressing other areas including key customer touchpoints like facilities, websites and delivery process,” Gomez said.

Following are some key findings of the 2023 study:

• Digital shopping journeys vary by generation: While buyers overall continue to migrate away from visiting a brand’s website or calling a dealer, text messaging a dealership is on the rise during the past three years. However, the largest group (22%) choosing to text message with a dealership is Gen Z¹ at 22%. While Gen Y and Gen X are more likely to visit the brand and/or dealer website during the act of shopping for a new vehicle. Brands can improve satisfaction with their website by 102 points when including vehicle pricing. Offering an online chat feature can increase satisfaction 43 points. “This is a message to dealers that they need to be ready to accommodate customers through all of the digital sales channels,” Gomez said.
• Buying without taking a test drive: The percentage of new-vehicle shoppers taking a test drive has declined to 57% from 67% in 2021. During the same time, the number of new-vehicle buyers going to a dealership in person increased to 100% from 98%. One of the primary reasons for fewer test drives is that a vehicle was not available at the dealership. “What once was a given for buying a new vehicle has now dramatically decreased in the buying process,” Gomez said. “Test drives are a great way to build relationships with customers by showcasing and answering any questions about the vehicle. A good sales experience can lead to future service visits.      
• Tactics that diminish dealer reputations: Dealers using bait-and-switch techniques to lure in new-vehicle shoppers and then charging them more than the advertised or original price of the vehicle have their Net Promoter Score^®2 cut nearly in half. Not only is advocacy for the dealership being diminished, but the effect on satisfaction is a decline of 117 points. Additionally, the price paid affects the percentage of buyers who say they “definitely will” return to the dealership for future service—a major revenue stream for franchised dealerships. There are fewer new-vehicle buyers mentioning that they will return when paying more than the advertised or original price (48%) than buyers paying the original price (68%).
• Leasing increases but barriers exist: While leasing is still relatively low in the market, lease volume has increased 2 percentage points year over year among buyers of mass market vehicles. New to the study this year is the analysis of reasons why buyers are not choosing leasing as a payment option. Barriers to increasing leasing portfolios include: the leasing plan was not attractive (28%); a leasing purchase option was not offered (27%); and the advisor did not explain the leasing characteristics (15%). Satisfaction among buyers with leases (874) is slightly above those who took out a loan (869).
• Half of new-vehicle shoppers are avoiding at least one brand: The top three reasons why a buyer is staying away from a brand are: unreliability (23%); brand reputation (18%); and expensive to purchase (17%).

Study Rankings

Mercedes-Benz ranks highest overall and among premium brands with a score of 930.

Honda ranks highest among mass market brands with a score of 902. MG Motor (894) ranks second and Toyota (880) ranks third.  

The Mexico Sales Satisfaction Index (SSI) Study, now in its 10^th year, provides automotive manufacturers and consumers with an objective measure of the satisfaction levels of new-vehicle buyers. The study emphasizes the relevance of the online vehicle shopping experience and examines customer satisfaction with the selling dealer across six measures (listed in order of importance): delivery process (27%); dealer personnel (25%); facility (16%); working out the deal (13%); paperwork (12%); and brand website (7%).

The study is based on evaluations of 3,263 new-vehicle buyers in Mexico considering 2021-2023 models, after one to 12 months of ownership. The study was fielded from October 2022 through February 2023.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies. JD Power has offices in North America, Europe and Asia Pacific.

Media Relations Contacts
Fabiana Duran; Ciudad de México; +52 55 1012 0885; [email protected]
Geno Effler, JD Power; U.S.A.; 714-621-6224; [email protected]

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

¹JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2004). Millennials (1982-1994) are a subset of Gen Y.
²Net 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.