Category: China

Domestic Brands in China Narrow the Gap with International Brands in Overall New-Vehicle Appeal

1970-01-01

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SHANGHAI: 30 November 2012 — Chinese domestic brands have substantially narrowed the gap with international brands in overall vehicle appeal, according to the JD Power Asia Pacific 2012 China Automotive Performance, Execution and Layout (APEAL) Study^SM released today.

Now in its 10th year, the China APEAL Study examines how gratifying a new vehicle is to own and drive, based on owner evaluations during the first two to six months of ownership. The study examines 82 attributes across 10 vehicle performance categories: vehicle exterior; vehicle interior; storage and space; audio/ entertainment/ navigation; seats; HVAC; driving dynamics; engine/ transmission; visibility and driving safety; and fuel economy.

Domestic brands achieve an average APEAL score of 781 points, an historic high for brands of Chinese automakers. Domestic brands have made significant improvements in the audio/ entertainment/ navigation and seats categories, each increasing by 11 points from 2011. There are also improvements in the driving dynamics and engine/ transmission categories, with each increasing by seven points from 2011. The APEAL score for international brands drops to 839 points in 2012 from 847 in 2011, due to declining satisfaction in the vehicle exterior and storage and space categories.

The China automotive industry achieves an overall APEAL score of  822 points (on a 1,000-point scale) in 2012, a 3-point decline compared with 2011.

“The significant price decline that the industry has experienced during the past year is causing a negative impact on owner satisfaction with their vehicle,” said Dr. Mei Songlin, vice president and managing director of JD Power China operations.  “Of 12 segments examined, seven experienced a continuous decline in median vehicle price within the nine-month study period.  If an owner sees the price of their newly purchased vehicle depreciating dramatically over the months after the purchase, their appreciation of the vehicle’s appeal will be negatively affected.”
 
The 2012 China APEAL Study finds that satisfaction with the interior and exterior of newly launched models has declined year over year. The study also shows that satisfaction with all new models is lower than satisfaction with redesigned models, which were generally tailored to meet the preferences of consumers in China.

“A new model will do much better in appealing to consumers in China if local consumer preferences are considered in the design stage, before it is launched to the market,” said Dr. Mei. “Although global platforms are effective, we may be reaching the point where vehicles must be designed to better adapt to the Chinese buyers’ preferences.”

Collectively, Korean brands achieve the highest average APEAL score by country of origin for a second consecutive year, with an index score of 851 points, which is a 9-point decline from 2011. Korean brands outperform the industry average in eight of the 10 vehicle performance categories, particularly in storage and space, in which Korean brands score 35 points higher than the industry average. European brands collectively average 846 points, followed by U.S. (837) and Japanese (829) brands.

Luxury brands achieve the four highest-rank positions among the 67 brands examined in the study. Audi ranks highest with a score of 884, followed by BMW (870), Lexus (864) and Mercedes-Benz (859).

Among the 12 segments included in the 2012 study, 10 segments are award-eligible. Models from Shanghai General Motors receive awards in four segments. SGM-Chevrolet earns two awards: the Sail in the premium compact segment and the Epica in the lower premium midsize segment. Buick earns two awards: the Excelle XT/GT in the midsize segment and GL8 in the MPV segment. Models from Beijing Hyundai earn two awards: the Sonata in the upper premium midsize segment and the ix35 in the SUV segment. Another Korean make Dongfeng Yuedai Kia (Kia K2) earns the award in the entry midsize segment. Domestic models Chery QQ3 and Wuling Sunshine rank highest in the compact and mini van segments, respectively. The Audi model A6L ranks highest in the luxury segment.
  

The highest-ranked models by segment in 2012 are:

• Compact segment: Chery QQ3
• Premium compact segment: Chevrolet Sail
• Entry midsize segment: Kia K2
• Midsize segment: Buick Excelle XT/GT
• Lower premium midsize segment: Chevrolet Epica
• Upper premium midsize segment: Hyundai Sonata
• Luxury segment: Audi A6L
• SUV segment: Hyundai ix35
• MPV segment: Buick GL8
• Mini van segment: Wuling Sunshine

The APEAL Study finds that new-vehicle performance has a strong impact on consumer loyalty and advocacy. The more satisfied owners are with the performance of their vehicle, the more likely they are to recommend it to others and repurchase from the same brand in the future. Net recommendation and repurchase rates average 38 percent and 19 percent, respectively, for models with the highest levels of satisfaction (APEAL scores averaging 837 or higher). However, net recommendation and repurchase rates drop to 18 percent and 3 percent, respectively, for models with the lowest levels of satisfaction (APEAL scores averaging 790 or lower).

“Key areas of focus for automakers in the Chinese market are seats and vehicle interior,” said Tony Zhou, automotive research director of JD Power China operations. “In particular, improving seats may help the industry go a long way in achieving higher customer satisfaction. The 2012 study finds that seats account for four of the top 10 attributes with the lowest customer satisfaction.”

The 2012 China Automotive Performance, Execution and Layout (APEAL) Study is based on evaluations from 20,270 owners who purchased a new passenger vehicle between October 2011 and June 2012. The study examines 12 vehicle segments, which include 217 passenger vehicle models and 67 brands. The study was fielded from April to August 2012 in 43 major cities across China.

JD Power and Associates’ benchmark studies evaluate products and services based on customer feedback on their experiences to help businesses make informed decisions about product and service improvements. The research is conducted through an entirely independent process that is funded by JD Power, which is key to the company’s independence and unbiased position. Typically, studies are derived from a random national sample of customers who use products and services across a number of industries. Study results are based solely on the opinions of customers. The opinion of JD Power is not included in the study results.

The China Automotive Performance, Execution and Layout (APEAL) Study is one of the customer-based benchmark studies conducted by JD Power Asia Pacific in China. Other 2012 studies conducted by JD Power Asia Pacific include:

• The China Customer Service Index (CSI) Study, which examines satisfaction with the after-sales service experience among vehicle owners between 12 and 24 months of ownership, was released in July.
• The China New-Vehicle Intender Study (NVIS), which examines pre-purchase perceptions and considerations, was released in June.
• The China Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new-vehicle sales process, was released in August.
• The China Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners during the first two to six months of ownership, was released in October.
• The China Original Equipment Tire Satisfaction Index Study (OE-TSI),, which measures satisfaction among original equipment tire owners during the first 12 to 24 months of ownership, was released in November.
• The China Vehicle Dependability Study (VDS), which evaluates overall vehicle dependability during the first 25-36 months of ownership, will be published in mid-December.

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

About JD Power and Associates

Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, JD Power and Associates and Platts, a leader in commodities information. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

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No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. www.jdpower.com/corporate

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Chinese Domestic Brands Improve in Vehicle Dependability, Further Narrowing the Gap with International Brands

1970-01-01

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SHANGHAI: 21 December 2012 — Chinese nameplates show significant improvements in long-term durability for a second consecutive year and continue to narrow the gap with international brands, according to the JD Power Asia Pacific 2012 China Vehicle Dependability Study^SM (VDS) released today. 

Now in its third year, the study measures problems experienced during the past six months by original owners of vehicles after 25 to 36 months of ownership,¹ and includes 202 different problem symptoms across eight categories: engine and transmission; vehicle exterior; driving experience; features, controls and displays; audio and entertainment; seats; heating, ventilation and cooling (HVAC); and vehicle interior. Overall dependability is determined by the level of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.

In 2012, overall vehicle dependability averages 196 PP100, an improvement of 32 PP100 from 2011. The gain is mainly attributable to improvement in the engine/transmission and driving experience categories, with problem incidence decreasing by an average of 9 PP100 and 8 PP100, respectively, from 2011.

The compact vehicle segment improves a significant 173 PP100 from 2011, notably contributing to the industry-wide gain in vehicle dependability in 2012.  Reported problems in the mini van segment have decreased by 85 PP100 from 2011. The compact and mini van segments had most frequently reported problems in 2011.

Chinese domestic brands have narrowed the gap in vehicle dependability with international brands to 80 PP100 in 2012 from 139 PP100 in 2011. Among domestic brands, vehicle dependability in 2012 improves to an average of 250 PP100 from 327 PP100 in 2011, while international brands average 170 PP100 in 2012, an 18 PP100 improvement from 2011.

“Domestic brands continue to show improvement in both initial quality and long-term dependability,” said Tony Zhou, director of automotive research at JD Power China operations. “While there is still room for significant improvement for Chinese nameplates in specific categories, such as engine and transmission, vehicles produced by domestic brands are becoming demonstrably more attractive to Chinese consumers.”

Highest-Ranked Nameplates and Models

Models from Japanese manufacturers receive seven awards from the 11 award segments. Chinese domestic brands rank highest in three segments. Among European brands, German nameplate Audi earns one award. Models ranking highest overall in their respective segment include:

• Compact: Suzuki Alto
• Premium Compact: Tianjin Weizhi
• Entry Midsize: Toyota Vios
• Midsize: Nissan Tiida
• Lower Premium Midsize: BYD F6
• Upper Premium Midsize: Toyota Camry Classic
• Entry Luxury: Audi A4L
• Luxury: Toyota Crown
• SUV: Toyota Highlander
• MPV: Honda Odyssey
• Mini Van: Hafei Minyi

BMW is the highest-ranked nameplate in vehicle dependability among the 54 nameplates included in the study, achieving just 98 PP100.  GAC Toyota (107 PP100) ranks second and Mercedes-Benz (113 PP 100) ranks third.  Audi and Subaru rank fourth in a tie with 117 PP100 each. Five domestic brands ranks above industry average in vehicle dependability.

Frequently Reported Problems

The most frequently reported problems in 2012 are: windshield wipers or washers are broken or not working properly; the engine loses power when air conditioning is turned on; air conditioning doesn’t get cold enough fast enough; brakes are noisy; and exterior light problem due to bulb failure.  These top problem areas are consistent with those in the 2011 study.

Many of the key vehicle dependability problems and problem symptoms are consistent with the top problems identified in the JD Power Asia Pacific 2012 China Initial Quality Study^SM (IQS), which measures problems customers experience during the first two to six months ownership.  Specifically, six of the top 10 problem symptoms in initial vehicle quality also rank among the top problem areas in vehicle dependability, including: engine loses power when air conditioning is turned on; air conditioning doesn’t get cold enough fast enough; brakes are noisy; air from vents smells stale or moldy; excessive fuel consumption; and excessive wind noise.

When compared with the U.S. market, there are several problem areas unique to the Chinese market, namely: engine loses power when air conditioning is turned on; emergency/parking brake; and horn malfunctions.

The study also finds that 45 percent of owners indicate they have replaced at least one vehicle component during the past six months. The most frequently replaced components include exterior lights; horns; interior lights; clutch; and battery.²

“Frequent component replacements increase direct warranty costs for automakers, and also increase the likelihood of customer-reported problems and diminished brand loyalty,” says Dr. Mei Songlin, vice president and managing director of JD Power China Operations. “Reducing problem incidence with these replaceable components may pay off in the long term by driving favorable perceptions toward vehicle dependability.”

Among owners who indicate that they have experienced no problems with their vehicle, 30 percent say they “definitely will” recommend their vehicle to family and friends. In contrast, this proportion declines to 18 percent among owners who indicate experiencing more than one problem.

The 2012 China Vehicle Dependability Study is based on evaluations from 14,127 owners of vehicles purchased between June 2009 and August 2010 and includes 147 models from 54 different brands. The study was fielded between June and September 2012 in 37 cities across China.

JD Power and Associates’ benchmark studies evaluate products and services based on customer feedback on their experiences to help businesses make informed decisions about product and service improvements. The research is conducted through an entirely independent process that is funded by JD Power, which is key to the company’s independence and unbiased position. Study results are based solely on the opinions of customers. The opinion of JD Power is not included in the study results.

The China Vehicle Dependability Study (VDS) is one of the customer-based benchmark studies conducted by JD Power Asia Pacific in China for the automotive industry. Other 2012 automotive studies conducted by JD Power Asia Pacific include:

• The China New-Vehicle Intender Study (NVIS), which examines pre-purchase perceptions and considerations, was released in June.
• The China Customer Service Index (CSI) Study, which examines satisfaction with the after-sales service experience among vehicle owners between 12 and 24 months of ownership, was released in July.
• The China Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new-vehicle sales process, was released in August.
• The China Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners during the first two to six months of ownership, was released in October.
• The China Original Equipment Tire Satisfaction Index Study (OE-TSI), which measures satisfaction among original equipment tire owners during the first 12 to 24 months of ownership, was released in November.
• The China Automotive Performance, Execution and Layout (APEAL) Study, which measures what excites and delights owners about their new vehicle’s performance and design during the first two to six months of ownership, was released in late November.

About JD Power Asia Pacific

About JD Power and Associates

Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, JD Power and Associates and Platts, a leader in commodities information. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

Follow us on Twitter: @JDPower

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. www.jdpower.com/corporate

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Customer Satisfaction toward After-Sales Services Declines in China Due to Rising Customer Expectations

2013-07-31

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SHANGHAI: 31 July 2013 — Overall customer satisfaction with after-sales service at authorized dealerships in China declines in 2013, largely due to rising customer expectations toward the service experience, according to the JD Power Asia Pacific 2013 China Customer Service Index (CSI) Study^SM.

The China Customer Service Index Study, now in its 13^th year, measures satisfaction among vehicle owners (between 12 and 24 months of ownership) who visit an authorized dealer’s service department for maintenance or repair work during the past six months. The 12-24 month ownership typically represents a substantial portion of the vehicle warranty period. The study examines five factors to determine overall satisfaction with dealer service (in order of importance): service quality; service facility; vehicle pick-up; service advisor; and service initiation. The customer satisfaction score measures the performance among authorized dealers on meeting customers’ expectations of their after-sales experience.

Overall customer satisfaction with after-sales service in China drops to 815 on a 1,000-point scale in 2013 from 832 in 2012, driven largely by a decline in satisfaction with Chinese domestic brands and Japanese and European brands. Customer satisfaction with Chinese domestic brands declines by 31 points to 751 in 2013. Customer satisfaction with Japanese brands averages 831, compared with 860 in 2012. European brands experience a 17-point decrease to 832 in 2013, while U.S. brands achieve an average score of 851, a one-point decrease from 2012. Among all brands of origin, only Korean brands collectively show improvement in customer satisfaction, with a year-over-year increase of 13 points to 874.

The declines in satisfaction with European, Chinese domestic and Japanese brands are attributed to the significant increase in customer expectations of their service experiences. The study identifies key performance indicators (KPIs) that contribute to overall customer satisfaction with the after-service experience. When implementing 13 KPIs, European brands experience a 37-point decrease in customer satisfaction, compared with 2012. When they implement 13 KPIs, satisfaction with Japanese and Chinese domestic brands decreases by 34 points and 33 points, respectively. When U.S. and Korean brands implement the same number of KPIs customer satisfaction remains consistent year over year.

“The competitive landscape continues to be aggressive, driven by product proliferation and rising customer expectations, making it imperative for manufacturers and dealerships alike to develop points of differentiation on delivering a superior customer experience in after-sales services,” said Tony Zhou, director of automotive research at JD Power China, Shanghai. “The industry should also be attuned to macroeconomic dynamics and be agile in adapting dealer-service processes and standards in response to the changing business environment.

In the first five months of 2013, China had 6.7 million new passenger vehicles on the road, a 17 percent increase from the same period in 2012. Despite the aggressive dealer network expansion, this increase in the number of vehicles has put immense pressure on capacity at dealer service departments.”

Zhou noted that customer loyalty is particularly important because after-sales service is a significant profit center for dealerships. After-sales services account for 50 percent of overall dealer profit, increasing from 44 percent in 2012, according to the JD Power Asia Pacific 2012 Dealer Attitude Study. ^SM

Customer satisfaction with their after-sales experience has a direct impact on dealers’ service volume. Service volume among dealers with high customer satisfaction (831 points and above) averages 14,692 service visits per year per dealership, compared with 11,224 service visits among those with low satisfaction (773 points and below).

To improve customer satisfaction, priority should be placed on building a personal relationship with customers. The top KPI is service advisor paying full attention to each customer and focusing on customer’s individual needs, which has a 65-point and 40-point impact on overall satisfaction for luxury brands and mass market brands, respectively.

“China is going to introduce the car warranty policy in October, supporting customers’ rights to return defective vehicles and seek a refund or replacement,” said Mei Songlin, vice president and managing director of JD Power China, Shanghai. “Dealers are at the front line of ensuring a positive customer experience. Meeting or surpassing customer needs is critical to mitigating the potential adverse effect of this new policy on customer loyalty and profitability for brands and dealers alike.”

For the first time, the CSI Study separates luxury brands from mass market brands. The objective of the segmentation is to address the differences in customer expectations regarding after-sales service in the two market segments.

Overall customer satisfaction with after-sales service among luxury brands averages 849, while mass market brands average 811.

Audi ranks highest in the luxury segment with a score of 880, and performs particularly well in all five factors. BMW ranks second (873) and Cadillac third (872).

Among mass market brands, Dongfeng Peugeot ranks highest at 882, performing particularly well in service advisor, service initiation and vehicle pick-up. Following Dongfeng Peugeot in the rankings are Guangqi Honda (881) and Dongfeng Citroën (879).

The 2013 China Customer Service Index (CSI) Study is based on street intercept and face-to-face interviews with 15,370 new-vehicle owners who purchased their vehicle between February 2011 and May 2012, and examines 71 passenger vehicle brands. The study was fielded between February and May 2013 in 43 major cities in China.

The Customer Satisfaction Index (CSI) Study is one of eight consumer-based benchmark studies conducted by JD Power Asia Pacific in China. Other 2013 studies conducted by JD Power Asia Pacific include:

• The China Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new-vehicle sales process, was released in late June.
• The China New-Vehicle Intender Study (NVIS), which examines customers’ pre-purchase perceptions and considerations, will be released in late August.
• The China Original Equipment Tire Satisfaction Index (OE-TSI) Study, which measures customer satisfaction with original equipment tires, will be released in September.
• The China Manufacturer Website Evaluation Study (MWES), which measures the effectiveness of OEM websites on the basis of the Voice of the Customer, will be released in late September.
• The China Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners during the first two to six months of ownership, will be released in October.
• The China Automotive Performance, Execution and Layout (APEAL) Study, which measures what excites and delights owners about their new vehicle’s performance and design during the first two to six months of ownership, will be released in November.
• The China Vehicle Dependability Study (VDS), which evaluates overall vehicle dependability during the first 25-36 months of ownership, will be published in December.

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, Australia, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]. Please follow JD Power at http://e.weibo.com/jdpowerchina.

About JD Power

JD Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., JD Power has offices in North/South America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw Hill Financial.

About McGraw Hill Financial

McGraw Hill Financial (NYSE: MHFI) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com.

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power. www.jdpower.com/corporate.

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Initial Quality with Domestic Brands in China Improves Significantly, Narrowing the Gap with International Brands

2013-10-31

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SHANGHAI: 31 October 2013 — Domestic automakers are making strides in improving vehicle initial quality, as Chinese brands significantly narrow the gap with international brands helping drive the overall industry average problem rate in China to a record low, according to the JD Power Asia Pacific 2013 China Initial Quality Study^SM (IQS) released today.

The study, now in its 14^th year, examines 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. The overall initial quality score is determined by problems reported per 100 vehicles (PP100), with a lower rate of problem incidence indicating higher quality.

Overall initial quality of domestic brands improves to 155 PP100 in 2013, a significant decrease of 57 PP100 from 2012. Initial quality of international brands also improves year over year, to 104 PP100 in 2013 from 117 PP100 in 2012. The gap is quality scores between domestic brands and international brands has narrowed to 51 PP100 in 2013 from 95 PP100 in 2012.

The improvement of Chinese domestic brands is largely driven by a significant reduction in the number of problems related to the engine/ transmission and heating, ventilation and air conditioning (HVAC) system, each decreasing by 12 PP100.

“Chinese domestic brands achieve tremendous improvement in vehicle quality in 2013, with four domestic brands–GAC Motor, Venucia, Roewe and Luxgen[1]–performing above industry average,” said Dr. Mei Songlin, vice president and managing director of JD Power China. “We have seen the gap with international brands continually narrow during the past 14 years from 396 PP100 in 2000.”

Overall initial quality across the industry averages 119 PP100 in 2013, which represents the lowest number of problems since the inception of the study in 2000.

When examining initial quality by country of manufacturer origin, Korean brands have the highest overall initial quality with an average of 85 PP100, which is an 8 PP100 improvement from 2012. Japanese brands average 104 PP100 and improve by 9 PP100 from 2012. European and U.S. brands each average108 PP100, with improvements of 11 PP100 and 28 PP100, respectively, from 2012.

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power. www.jdpower.com/corporate.

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[1] No domestic brand exceeded industry average in the JD Power Asia Pacific 2012 China Initial Quality Study.^SM

Chinese Domestic Auto Brands Gain Ground in Designing Appealing Cars

2013-11-29

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SHANGHAI: 29 November 2013 — When it comes to the appeal of new vehicles, Chinese domestic auto brands have narrowed the gap with international brands to its slimmest level since 2003, according to the JD Power Asia Pacific 2013 China Automotive Performance, Execution and Layout (APEAL) Study^SM released today.

Now in its 11^th year, the study examines how gratifying a new vehicle is to own and drive, based on owner evaluations during the first two to six months of ownership. The study examines 82 attributes across 10 vehicle performance categories: vehicle exterior; vehicle interior; storage and space; audio/ entertainment/ navigation; seats; HVAC; driving dynamics; engine/ transmission; visibility and driving safety; and fuel economy.

The overall APEAL score among Chinese domestic brands averages 772 points (on a 1,000-point scale), compared with 816 among international brands. The 44-point gap between domestic and international brands is the smallest in the history of the study and down from a 58-point gap in 2012.

Collectively, Korean brands achieve the highest average APEAL score by country of origin, with an average score of 838 points. European brands average 823 points, followed by U.S. (805) and Japanese (800) brands. Chinese brands average 32 points below industry average, an improvement from 2012 when they were 41 points below industry average.

The overall new-vehicle APEAL score in 2013 averages 804 points in 2013, decreasing by 18 points from 2012. This significant drop in vehicle APEAL is attributed to consumers in China having becoming more discerning, particularly because they  have an ever-increasing range of new vehicles from which to choose.

“With more than 500 passenger vehicle models in the market[1], it has become more difficult to woo Chinese consumers,” said Dr. Mei Songlin, vice president and managing director of JD Power China.  “Our data shows that new-vehicle shoppers consider 2.62 brands, on average, before making their purchase decision, compared with 2.48 in 2012. Such comparisons have resulted in customers becoming more critical when rating their experience with their vehicle.”

The significant year-over-year price decline in the auto industry has also negatively impacted owner satisfaction with their vehicle, according to the 2013 study.

“If an owner sees the price of their newly purchased vehicle declining dramatically, their appreciation of the vehicle’s appeal is negatively affected,” said Dr. Mei. “Of the 12 segments included in the study, nine have experienced a decline in vehicle prices during the nine-month study period.”

The study finds that new-vehicle performance has a strong impact on customer loyalty and advocacy. The more satisfied owners are with the performance of their vehicle, the more likely they are to recommend it to others and repurchase from the same brand in the future. Among owners whose vehicle achieved an APEAL score of 861 or higher, 31 percent say they “definitely will” repurchase a vehicle from the same manufacturer again, and 54 percent say they “definitely will” recommend their model to family and friends. In comparison, repurchase and recommendation intentions drop to 6 percent and 15 percent, respectively, among owners whose vehicle achieved an APEAL score of lower than 749.

“Key areas of focus for automakers in the Chinese market are smell of interior, fuel economy and seat materials,” said Tony Zhou, automotive research director at JD Power China. “In particular, improving smell of interior may improve customer satisfaction, as it is an area that receives low ratings from vehicle owners.”

Luxury brands earn the six highest-ranked positions among the 65 brands examined in the study. Land Rover ranks highest among nameplates, with a score of 857, followed by Audi and Mercedes-Benz (in a tie) with 848 each. Volvo (847) ranks fourth and Cadillac (845) fifth.

Two Chinese domestic brands—Luxgen and Zhonghua—rank above industry average. 

Beijing Hyundai and Shanghai General Motors each receive two model-level awards: Beijing Hyundai for the Langdong Elantra (midsize) and ix35 (SUV) and Shanghai General Motors for the Chevrolet Sail (premium compact segment) and Buick New GL8 (MPV). 

The Dongfeng Yueda Kia (Kia K2) ranks highest in the entry midsize segment. Chinese domestic models Wuling Hongguang (mini van) and Baojun Lechi (compact) rank highest in their respective segments.  

In total, 10 segments are eligible for awards in 2013[2]. The highest-ranked models by segment are:

• Compact segment: Baojun Lechi

• Premium compact segment: Chevrolet Sail
• Entry midsize segment: Kia K2
• Midsize segment: Hyundai Langdong Elantra
• Upper premium midsize segment: Volkswagen Magotan
• Luxury segment: Mercedes-Benz S-Class
• Luxury SUV segment: Audi Q5
• SUV segment: Hyundai ix35
• MPV segment: Buick new GL8
• Mini van segment: Wuling Hongguang

The 2013 China Automotive Performance, Execution and Layout (APEAL) Study is based on evaluations from 20,926 owners who purchased a new passenger vehicle between October 2012 and June 2013.

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, Australia, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media email contact: [email protected].Please follow JD Power at http://e.weibo.com/jdpowerchina.

About JD Power

About McGraw Hill Financial

McGraw Hill Financial (NYSE: MHFI) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com.

Media Relations Contacts

John Tews; Director, Media Relations; JD Power; Troy, Michigan 48083 USA; 001 248 680 6218; [email protected]

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power. www.jdpower.com/corporate.

[1] LMC Automotive forecasts a total of 524 passenger vehicle models with a sales volume of 100 units and above. Import cars are included.