Category: China

Consumers in China Increasingly Enthusiastic about New-Energy Vehicles and Eager for Battery Technology Advancement, JD Power Survey Finds

2018-02-08

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SHANGHAI: 26 Feb. 2018 – Propelled by growing public concerns about the environment and thanks to incentive policies, the enthusiasm among consumers in China for new-energy vehicles (mainly electric cars) has been steadily increasing, with consumers also expecting breakthroughs in battery technology, according to a recent JD Power survey on Chinese consumers’ purchase intentions regarding new-energy vehicles.

The online survey, which was designed and conducted by JD Power in January to understand Chinese customers’ perception and desire for new-energy vehicles, has a total of 2,212 respondents across the country.

The survey shows that 86% of consumers say they “completely agree” or “partially agree” that new-energy vehicles (NEVs) will replace internal combustion engine cars, and 95% say they are “very willing” or “slightly willing” to choose an NEV for their next vehicle purchase. Environmentally friendly (76%) and fuel economy (63%) are the most often cited reasons for purchasing an NEV, while government incentives, such as subsidies (61%) and free license plates (40%), are also important. However, if there were no subsidies, 41% of consumers indicate they would not select an NEV and 29% would not select an NEV if there were no free license plates.

“Behind the enthusiasm for new-energy vehicles are a growing environmental awareness and a series of incentive policies. There is still a gap between such fervor and real demand, however. When governmental incentives gradually fade away, auto manufacturers need to be cautious and get prepared for the potential decrease of demand for NEVs,” said Jacob George, Vice President and General Manager at JD Power Asia Pacific.

Battery life remains a big concern. The survey finds that consumers in China expect a shorter charging time and a longer driving range. More than three-fourths (77%) of consumers prefer new- energy vehicles with a driving range on a full charge of more than 200 kilometers, while 38% prefer a range of more than 300 kilometers. About one-third (30%) indicate they prefer a charging time of less than 6 hours and 12% prefer battery changing, which takes only a few minutes.

“Consumers’ high expectations for new-energy vehicles, especially battery technology, will likely drive manufacturers to enhance research and development efforts for technology advancement and breakthroughs. Battery technology has become one of the most formidable challenges that manufacturers must address,” said Jeff Cai, General Manager of Auto Products Practice at JD Power China.

Most consumers are still concerned about dependability and high maintenance costs due to the constraints of current battery technology. Seven in 10 (68%) consumers are concerned that the mileage driven on one charge will decrease over time. Other concerns include high charging frequency (65%); long charging time (60%); high battery replacement/maintenance cost (59%); vehicle breakdown caused by battery troubles (49%); and insufficient battery warranty services (40%). “How to achieve a longer driving range with a lower battery charging frequency, how to further reduce battery costs and how to address its recycling—all these are pressing challenges that need to be addressed before we can really embrace the era of new-energy vehicles,” added Cai.

Specific to battery use, consumers also have other concerns, such as the lack of a battery recycle system, which may result in pollution (27%); lack of clarity about the usage and maintenance of battery (22%); and uncertainty about how to dispose of a worn-out battery (21%).

Following are additional findings of the survey:

• Trust plays an important role: Consumers in China trust conventional automakers (93%) more than new entrants (81%) to develop new-energy vehicle technologies. Customers trust new automakers less due to their low brand awareness, unreliable product quality and immature technologies; however, they have more faith in new players when it comes to innovation capabilities.

• New-energy vehicle purchasing options matter: New-energy vehicle intenders are willing to try new ways of purchasing and servicing NEVs:41% prefer online car shopping and 30% prefer to visit the branded service stores directly owned by the manufacturers for after-sales service and maintenance.

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 is headquartered in Costa Mesa, California, and has offices in Shanghai, Beijing, Tokyo, Singapore, Malaysia and Bangkok serving the Asia Pacific region. JD Power is a portfolio company of XIO Group, a global alternative investments firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts
Shana Zhuang; JD Power; China; +86 21 8026 5719; [email protected]
Geno Effler; JD Power; Costa Mesa, California, USA; 001-714-621-6224; [email protected]

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

 

JD Power Reaches Strategic Partnership with BitAuto on Digitization

2018-01-25

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SHANGHAI: 29 Jan. 2018 — JD Power, the global leader in marketing data and analytics, announced a strategic partnership with BitAuto, China’s leading consumer-facing automotive portal, to conduct joint research and develop big data and artificial intelligence.

The collaboration will help leverage JD Power research and analytics capabilities and BitAuto’s data and technology strengths across various business sectors. The partnership will strive to generate real-time data accuracy and new data analytics services, enabling Chinese automakers, dealerships and consumers to proactively and efficiently make effective decisions in an increasingly complex and dynamic market.

Under the partnership, JD Power will publish its independently conducted Voice of Customers-based ratings across various BitAuto platforms. The state-of-the-art ratings system will provide Chinese customers with full access to JD Power’s model-level ratings and scores, hence helping consumers make more informed purchasing decisions.

Additionally, JD Power and BitAuto will work together to digitalize new research subjects and methods. In China’s fast-evolving market environment, such joint research initiatives will help automakers navigate and understand latest market trends and disruptions.

Looking at the future in China, JD Power and BitAuto intend to explore an automotive, strategic data collaboration focused on developing data collection, processing, analytics and artificial intelligence. The partnership will aim to build the most efficient automotive big data center and artificial intelligence platforms serving China’s automotive industry.

“This partnership between JD Power and BitAuto is of strategic significance,” said Jacob George, Vice President and General Manager, JD Power Asia Pacific. “We look forward to teaming up with BitAuto to write the new chapter on digitization for automotive consumer insights and advisory services.”

“Our partnership is a win-win and impactful one,” said Zhu Lei, Chief Technology Officer of BitAuto. “JD Power is one of the most influential and respected market research institutions globally, known for its methodology, independence and integrity. BitAuto, after 18 years experiencing fast growth in China, possesses abundant data resources and technology capabilities. In teaming up, both parties will ensure effective and efficient data services and intelligent solutions development.” 

“Established in 1968, JD Power has accumulated rich experience, sophisticated methodology and an international talent pool conducting market research, data analytics and consulting services within the automotive industry over the past 50 years,” said Joseph Pacini, Chief Executive Officer of XIO Group. “JD Power’s collaboration with leading players such as BitAuto will further enhance its digital capabilities and services. We look forward to driving the global automotive industry’s sustainable growth in China’s connected and digitalized market.”

For decades, JD Power has been focusing on providing in-depth consumer and industry insights though its cutting-edge research methodologies and data analytics, capturing opinions and perceptions of millions of consumers. PIN, also known as Power Information Network, is the most representative data product launched by JD Power in 1993, specialized in helping OEMs and dealerships better manage their businesses, increase revenues and profitability using analytics tools.

About JD Power
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 is headquartered in Costa Mesa, California, and has offices in Shanghai, Beijing, Tokyo, Singapore, Malaysia and Bangkok serving the Asia Pacific region. JD Power is part of XIO Group, a global alternative investments firm headquartered in London, and led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

About BitAuto
BitAuto Holdings Limited (BITA) is a leading provider of internet contents & marketing services, and transaction services for China’s fast-growing automotive industry. BitAuto’s main business segments include: advertising and subscription, transaction services, and digital marketing solutions. For more information, please visit www.BitAuto.com.

Media Contacts
Shana Zhuang; JD Power; China; +86 21 8026 5719; [email protected]
Xingru Li; BitAuto; +86 18612235663; [email protected]

 

Despite Booming Sales, SUVs Are Losing Appeal in China, JD Power Finds

2017-10-30

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SHANGHAI: 1 Nov. 2017— Although the market share of SUVs continues to rise in China, their APEAL index is actually going down, and SUVs in China are gradually losing the edge against non-SUVs in soft quality, according to the JD Power 2017 China Automotive Performance, Execution and Layout (APEAL) Study,^SM released today.

While the growth rate of passenger-vehicle sales in China is slowing down, the SUV boom continues. Its market share is expected to soar up to 43% by the end of this year, compared with 16% in 2011. [1] However, SUVs are becoming less appealing to consumers in China, compared with non-SUVs. In 2011, the APEAL index score for SUVs was 38 points higher (on a 1,000-point scale) than for non-SUVs, compared with only 1 point higher in 2017.

The study also finds that the small SUV segment performs lowest among the seven SUV segments across all 10 measurement categories of the study. Its only improvement was in fuel economy, up 9 points from last year.  

“In a market flooded with numerous SUVs, manufacturers have not come up with enough differentiated products,” said Dr. Mei Songlin, Vice President and Managing Director at JD Power China. “Despite their affection for SUVs, consumers in China expect more and better experiences from the new vehicles they buy, especially regarding new technologies and intelligent functions. Our 2017 APEAL Study indicates that automakers in China need to increasingly compete with differentiated products to sustain growth and success in the SUV market.”

Following are additional findings of the study:

• APEAL index is affecting consumers’ purchase decision: Among the top five purchase reasons cited by consumers in 2017, three are APEAL-related ones: vehicle performance; vehicle safety; and desired vehicle body type, attractive design and styling. In 2009, there was only one APPEAL-related: desired vehicle body type.

• Korean brands experience a decline: AlthoughKorean auto brands (711) outscore others in the 2017 study, they experience a decline this year. Korean brands are followed by European (709); Japanese (708); U.S. (698); and Chinese (676) brands. The APEAL index score for Korean brands has declined by 49 points year over year.

• Gap between Chinese domestic and international brands is narrowing: This year, the gap between the two segments (26 points) continues to narrow for the ninth consecutive year, with Chinese brands at 676 and international brands at 702.

• Satisfaction lower among consumers born after 1990: The satisfaction score among younger consumers born after 1990 (680) is conspicuously lower than those born in the 1970s (715), which indicates that a younger generation of Chinese new-vehicle buyers have higher expectations and are harder to satisfy.

Study Rankings

Porsche ranks highest in APEAL among luxury brands, with a score of 754. Land Rover (741) ranks second and Audi (731) ranks third.

FAW- Mazda ranks highest among mass market brands, with a score of 719, followed by Dongfeng Honda (714) and Dongfeng Yueda Kia (712).

SAIC Volkswagen (Volkswagen Polo and Volkswagen Passat) and FAW-Volkswagen (Volkswagen Jetta and Volkswagen Sagitar) have two models that receive model-level awards.

Other models that rank highest in their respective segments are the Nissan Sylphy; Audi A4L; Cadillac XTS; Lexus ES; Mercedes-Benz E-Class; Changan CS15; Citroen C3-XR; Honda CR-V; Ford Edge; BMW X1 and Porsche Macan.

The 2017 China Automotive Performance, Execution and Layout (APEAL) Study measures owners’ emotional attachment and level of excitement across 77 attributes in 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. These attributes are combined into an overall APEAL index score that is measured on a 1,000-point scale.

The study, now in its 15th year, is based on evaluations from 23,933 owners of new vehicles purchased between September 2016 and May 2017. The study analyzes models in 22 vehicle segments and includes 251 different passenger-vehicle models from 68 different brands. The field work was conducted from March through July 2017 in 67 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 is headquartered in Costa Mesa, California, and has offices in Shanghai, Beijing, Tokyo, Singapore, Malaysia and Bangkok serving the Asia Pacific region. JD Power is a portfolio company of XIO Group, a global alternative investments firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts
Shana Zhuang; JD Power; China; +86 21 2208 0831; [email protected]
Geno Effler; JD Power; Costa Mesa, California, USA; 001-714-621-6224; [email protected]

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

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Vehicle Owners in China Care Most for Exterior and Interior, JD Power Finds

2017-09-18

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SHANGHAI: 20 Sept. 2017 – The most reported dependability problems by vehicle owners in China are related to vehicle exterior and interior, which accounts for 18% and 15%, respectively, of all reported problems, according the JD Power 2017 China Vehicle Dependability Study^SM (VDS).

The top three problems reported in vehicle exterior are excessive road noise, wind noise and light bulb failure. As for vehicle interior, the three most reported problems include steering wheel worn or faded, materials scuff/soil easily, and writing on controls faded/removed.

The study also finds Chinese vehicle owners —especially those of luxury brands — are highly sensitive to interior smell. Air from vents smells unpleasant is the most common problem in the luxury segment, with a score of 4.4 PP100 (problems per 100 vehicles).

“It is important for automakers to understand that the concerns and needs of consumers in different markets can be hugely different, thus they should understand and precisely address the specific demands in each local marketplace,” said Jeff Cai, General Manager of Auto Product Practice at JD Power China. “Consumers in China obviously care more about their physical senses, such as noise, smell, air conditioning, styling/exterior design, compared with U.S. consumers—more experienced in buying and driving vehicles—who are more concerned about technology-related problems.”

Following are additional findings of the study:

• Reported problems in China are vastly different than those reported in the United States: Eight of the top 10 problems reported by the two markets are different. The most complained area in China is vehicle exterior (18%), while problems with audio, communication, entertainment and navigation (or ACEN) are most reported by U.S. consumers—22% in the United States, compared with 8% in China.
• Gap between domestic and international brands remains: In 2017, the dependability gap between domestic and international brands is 30 PP100, which is quite close to that of last year (28 PP100). The gap between the two segments has been dramatically shrunk to 30 PP100 in 2017 from 201 PP100 in 2010.
• Engine and transmission differences keep gap between domestic and international brands, which is similar to previous years: This year, manual transmission is difficult to get in gear/ gears grind is the most often reported engine and transmission problem among owners of domestic brands, with 1.8 PP100 more than owners of international brands.

Highest-Ranked Brands and Models

Porsche ranks highest in vehicle dependability among luxury brands, with a score of 101 PP100.  

• BMW and Land Rover follow in the rankings in second with 111 PP100 each.
• Jeep ranks highest among mass market brands, with a score of 116 PP100, followed by smart with 119 PP100 and Renault with 121 PP100.
• SAIC Volkswagen has four models (Skoda Fabia; Skoda Rapid; Volkswagen Lavida; and Volkswagen Touran) that receive segment awards.
• Beijing Hyundai modelsreceive three segment awards (Hyundai Mistra; Hyundai Tucson; and Hyundai Santa Fe).

The China Vehicle Dependability Study measures problems experienced during the past 12 months by original owners of 30- to 48-month-old vehicles and includes 177 problem symptoms across eight categories: engine/ transmission; vehicle exterior; driving experience; features/ controls/ displays; audio/ communication/ entertainment/ navigation; seats; heating, ventilation and cooling (HVAC); and vehicle interior. Overall dependability is determined by the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.

Now in its eighth year, the study is based on responses from 29,747 owners of vehicles purchased between December 2012 and December 2014. The study is fielded from December 2016 through July 2017 in 62 cities across China. This year, the study analyzes 176 models of 63 makes across 22 vehicle segments.

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 is headquartered in Costa Mesa, California, and has offices in Shanghai, Beijing, Tokyo, Singapore, Malaysia and Bangkok serving the Asia Pacific region. JD Power is a portfolio company of XIO Group, a global alternative investments firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts
Shana Zhuang; JD Power; China; +86 21 2208 0831; [email protected]
Geno Effler; JD Power; Costa Mesa, California, USA; 001-714-621-6224; [email protected]

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

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Domestic and International Brand Vehicle Initial Quality Gap Continues to Narrow, JD Power Finds

2017-09-26

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BEIJING: 28 Sept. 2017 – The new-vehicle quality gap between Chinese domestic brands and international brands is 13 PP100 (problems per 100 vehicles) in 2017, which marks the seventh consecutive year of a narrowing gap, according to the JD Power 2017 China Initial Quality Study^SM (IQS). The gap between the two segments has narrowed dramatically since JD Power first launched its Initial Quality Study in China in 2000, when the gap was 396 PP100.

The study shows that Chinese domestic brands, for the first time, slightly outperform international brands in three of the eight problem categories: vehicle interior (0.3 PP100 less); features/ controls/ displays (0.2 PP100 less); and audio/ communication/ entertainment/ navigation (0.1 PP100 less). However, the gap remains in engine/ transmission (5.8 PP100 more); vehicle exterior (3.7 PP100 more); and driving experience (2.2 PP100 more). 

The most often reported problem by vehicle owners in China continues to be Unpleasant interior smell or odor (16.4 PP100) this year. Complaints about Excessive fuel consumption has increased significantly to 7.8 PP100, with 2.8 PP100 and 2.3 PP100 more than in 2015 and 2016, respectively.

“The overall trend, based on our annual study, is that the new-vehicle quality in China has been improving continuously and substantially,” said Jeff Cai, General Manager of Auto Product Practice at JD Power China. “In this journey, Chinese domestic brands have made remarkable progress in producing a quality vehicle as they gain on international brands year by year in initial quality of their products. To truly stand out in an increasingly competitive market, it is highly critical for automakers to respond to consumer feedback regarding new-vehicle quality. For Chinese domestic brands, they will still need to proactively address consumers’ concerns and complaints on both design-related problems and defects/ malfunctions in a timely manner.”

Following are additional findings of the study:

• Owners of new-energy vehicles continue to report several problems: Whilenew-energy vehicles (plug-in hybrid) perform better in engine/ transmission and driving experience, they perform worse in the other six categories, compared with traditional fossil fuel vehicles. The most often reported problems by owners of plug-in hybrid electric vehicles are Park assist/ backup warning broken or not working; Built-in Bluetooth mobile phone/ device has frequent pairing/ connectivity issues; and Body panels gaps/ poor fit/ misaligned.

• Chinese new-vehicle owners care about smell and noise most: Eight of the top 20 reported problems are related to smell or noise: Unpleasant interior smell/ odor; Excessive road noise;  Excessive wind noise; Brakes noise; Seat squeaks or rattles; Abnormal engine noises; Fan/ Blower excessive noise; and Center console squeaks/ rattles.

• Korean brands (87 PP100) stand out in new-vehicle quality for sixth consecutive year:  Korean brands are followed byEuropean brands (95 PP100), Japanese brands (103 PP100), U.S. brands (106 PP100) and Chinese brands (112 PP100).

Highest-Ranked Brands and Models

• Porsche ranks highest in initial quality among luxury brands, with a score of 74 PP100. Lexus (78 PP100) ranks second and Audi ranks third (81 PP100).
• Beijing Hyundai ranks highest among mass market brands, with a score of 86 PP100, followed by Dongfeng Yueda Kia with 88 PP100 and Changan Mazda with 96 PP100.  
• Beijing Hyundai has three models (Hyundai Ruina/ Ruiyi Verna; Hyundai Langdong Elantra; and Hyundai Tucson) that receive segment awards.
• Audi modelsreceive two segment awards (Audi A4L and Audi Q5).

Other models that rank highest in their respective segments are the Peugeot 301; Nissan Sylphy; Volkswagen Sagitar; Honda Accord; Kia K5; Lexus ES; Baojun 560; Haval H2; Honda CR-V; Ford Edge; and Mercedes-Benz GLA-Class.

The 2017 China Initial Quality Study measures new-vehicle quality by examining problems experienced by owners within the first two to six months of ownership in two categories: design-related problems and defects/ malfunctions. Specific diagnostic questions are included in eight problem categories: interior; exterior; engine/ transmission; driving experience; features/ controls/ displays; seats; audio/ communication/ entertainment/ navigation; and heating/ ventilation/ air conditioning. The overall initial quality score is determined by problems reported per 100 (PP100) vehicles, with a lower number of problems indicating higher quality.

The study, now in its 18^th year, is based on evaluations from 23,993 owners of new vehicles purchased from September 2016 and May 2017. The study includes 251 different models from 68 different brands. The study was fielded from March through July 2017 in 67 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 is headquartered in Costa Mesa, California, and has offices in Shanghai, Beijing, Tokyo, Singapore, Malaysia and Bangkok serving the Asia Pacific region. JD Power is a portfolio company of XIO Group, a global alternative investments firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts
Shana Zhuang; JD Power; China; +86 21 2208 0831; [email protected]
Geno Effler; JD Power; Costa Mesa, California, USA; 001-714-621-6224; [email protected]

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

 

JD Power and China Automobile Manufacturers Association Collaborate to Launch China Passenger Vehicle Market Price Index

2017-10-09

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BEIJING: 12 October 2017 —  JD Power, the global leading market research and data analytics institution, announced today its collaboration with the China Automobile Manufacturers Association (CAAM) in launching the country’s first comprehensive industry-wide passenger vehicle price index—China Passenger Vehicle Market Price Index.

Initially, this new price index will cover 18 provinces across the entire country, representing approximately 80% of China passenger vehicle market sales. Main data for these provinces will originate from related provinces’ 4S dealerships new vehicle retail transaction price samples. Simultaneously, this index will include retail sales volume, market segmentation/brand/model mapping and relevant historical data. Starting from October 2017, this index will be released on a monthly basis, covering all key segments of mass-market and luxury markets.

“We are very happy to work with JD Power, a respected and independent third party market research institution, in launching this price index,” said Shi Jianhua, Deputy Secretary General of the China Automobile Manufacturers Association. “We are hoping such an authoritative price index not only will generate a positive impact to China’s automotive industry, but also be able to achieve good commercial value. This is the first step for our bilateral formal cooperation and in the future move forward to commonly build and share industry data resources by sustainably pushing forward the development of China’s auto industry.”

“With our strong relationship with the China Automobile Manufacturers Association industry authority, we hope to utilize JD Power’s data analysis domain superiority and rich industry study experience to provide this authoritative industry index and analysis reports to various participating and interested parties within the automotive industry,” said Dr. Mei Songlin, Vice President and Managing Director of JD Power China. “We hope this new price index can become one of the most important references for automakers, dealers, auto finance companies and commercial banks in the future when making and executing business decisions. We also expect this to become a model and millstone for the cooperation between JD Power and CAAM.”

The China Automobile Manufacturers Association (CAAM), founded in 1987, is a self-disciplined non-profit social organization, legally constituted based on equality and voluntary principles by enterprises, institutions and organizations involved in automobiles (motorcycles), auto parts and vehicle-related industries productions and operations in China. The association currently has nearly 2,700 members and after nearly thirty years of development, it has evolved as an indispensable important force in promoting a healthy and sustainable development to the country’s automotive industry.

 

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 is headquartered in Costa Mesa, California, and has offices in Shanghai, Beijing, Tokyo, Singapore, Malaysia and Bangkok serving the Asia Pacific region. Through continuous efforts developing highly efficient data analysis solutions such as “Power Information Network (PIN)”, JD Power helps automakers and dealerships make informed business decisions, conducting business management efficiencies and streamlined operations in a more scientific way to further accelerate sales and increase profitability.

Media Contacts
Shana Zhuang; JD Power; China; +86 21 2208 0831 ; [email protected]
Shen Yalan, CAAM; +86 10 68595432 / [email protected]

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

 

Vehicle Owners in China More Conscious of Tire Brands as Tire Replacement Rises, JD Power Finds

2017-08-22

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BEIJING: 24 Aug. 2017 — Vehicle owners in China are notably more likely to identify the brand of tires on their current vehicle, an increase to 70% from 42% in 2016,  according to the JD Power 2017 New-Vehicle Tire Satisfaction Study^SM (NV-TSI).

The study shows that 2% of new vehicle owners say they know their tire features “very well” and 18% say they know them “somewhat,” as compared with 1% and 9%, respectively, in 2016.

This is noteworthy because satisfaction directly affects vehicle owners’ choice of tire replacement. More than one-fourth (28%) of new-vehicle owners of tire brands that score high in satisfaction say they “definitely would” repurchase the same brand of tires in the future.

“With the increase of consumers’ awareness of tire brands, we can foresee market competition getting more fierce,” said Jeff Cai, general manager, auto product practice at JD Power China. “Although Chinese consumers may not yet have a strong awareness of which tire brand is on their first new vehicle, they are certainly becoming more mindful of tire brands and show an increasing preference thereafter. Because tires are the most frequently replaced components on vehicles, it is critical for tire manufacturers to provide high quality, branded products and services.”

The rate of tire replacement also is rising in the China market. More new-vehicle owners (64%) are following repair/maintenance workers’ suggestions to replace their tires, compared with 59% in 2016. The dealership where owners purchased their vehicle remains the leading channel for tire replacement (53%), followed by tire store (23%) and auto service station—garage (14%). The percentage of vehicle owners who do not replace tires unless confronted with problems that influence normal driving is 17% in 2017, compared with 21% in 2016.

Following are additional findings of the study:  

• Customer satisfaction is greatly affected by tire performance in special circumstances, including poor traction/grip on wet roads; poor traction/grip off-road; and poor traction/grip on snow-covered/icy roads. More than three-fourths (77%) of new-vehicle owners report having experienced no problems with their tires during the ownership period, while fewer owners have experienced one and two problems, 13% and 6%, respectively.

• U.S. tire brands rank highest in the luxury and SUV segments. In the mass market segment, Korean brands rank highest in tire customer satisfaction.

Study Rankings
Michelin ranks highest in both the luxury and mass market segments with scores of 768 and 712 (on a 1,000-point scale), respectively. Nexen ranks highest in the SUV segment with a score of 733.

About the Study
The China New-Vehicle Tire Satisfaction Study, now in its sixth year, measures new-vehicle customer satisfaction with their tires on new vehicles after 12 to 29 months of ownership (In 2016, the period was 12 to 36 months) based on four factors: appearance, durability, ride, and traction/ handling. The study includes four vehicle segments: luxury car; mass market car; SUV; and MPV/ Mini Van.

The study includes 14,276 vehicle owners in 62 cities across four regions and four city tiers in China; the methodology combines street intercept interviews and online panels.  The study was fielded from December 2016 through May 2017.

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 is headquartered in Costa Mesa, California, and has offices in Shanghai, Beijing, Tokyo, Singapore, Malaysia and Bangkok serving the Asia Pacific region. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts
Acy Min; JD Power; China; +86 21 2208 0979; [email protected]
Geno Effler; JD Power; Costa Mesa, California, USA; 001-714-621-6224; [email protected]

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

 

New-Vehicle Owners in China Tend to Spend at Non-Dealers despite Warranty, JD Power Finds

2017-07-27

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Audi, Beijing Hyundai Rank Highest in Customer Satisfaction in Respective Segments

BEIJING: 27 July 2017 — Vehicle owners in China often turn to non-dealers in the early stages of ownership even when most vehicles are still under warranty, according to the JD Power 2017 China Customer Service Index (CSI) Study,^SM released today. Owners of 1- to 4-year-old vehicles have made an average of 3.2 visits to dealers and 0.9 to non-dealers for service in the past year.

Among new-vehicle owners who indicate having spent on non-dealer service, 71% have visited non-dealers for service over the past 12 months in spite of warranty. Their expenditures on service at dealers and non-dealers in the past year is very close—an average of RMB2,450; USD362 and RMB2,098; USD310, respectively.

Car service chain stores and street quick-service centers, which combined account for 66% of all non-dealer service, have become the primary competitors to dealerships. In addition to convenience of location (43%), other top reasons for visiting non-dealers for service include open on convenient days/hours (23%); recommendation from a friend or relative (23%); and speedy service (21%). New-vehicle owners visit non-dealers mainly for such services as lube/ oil/ filter change (40%); other routine maintenance (33%); emergency repairs (24%); and non-emergency repairs (22%).

“These reasons are closely associated with service quality and customers’ satisfaction,” said Ann Xie, senior research director at JD Power China. “For dealers, the battle for customer loyalty and pocket now starts right from the beginning. New-vehicle warranties may help ensure dealers retain a relatively high volume of visits, but it is still not a guarantee of market share.”

The study shows new-vehicle owners’ overall rating on dealers’ service is “outstanding,”  while non-dealer’s service is rated as “average,”  with the rating for their non-dealer visits decreasing as the length of ownership grows.

“A lower level of satisfaction at non-dealers among new-vehicle owners provide dealers an opportunity to win over these customers at the time their warranties just begin to expire,” said Frank Hu, general manager of auto retail at JD Power China.

Following are additional findings of the study:

• Tire replacement triggers service defection: Customers seeking new tires offer the biggest risk of dealers losing service customers to non-dealer service facilities both during (7%) and out of (27%) warranty.

• Door-to-door service a plus: More than two-thirds (69%) of vehicle owners have no idea of any door-to-door maintenance and repair service; while among the door-to-door service customers, a half say they are “pleased” or “delighted” with the service. This high satisfaction leads to high intentions to use such a service again, as more than 90% of these service customers say they “probably would” or “certainly would” use such a service in the future.

• Recommending right products/ services at the right time: When service advisors recommend services in addition to the original service work requested—especially when the work is accepted by the customer—the average satisfaction score increases to 755 (on a 1,000-point scale), and the average service spend by each customer increases to RMB 917 (USD 135). When no additional service is recommended, the satisfaction score is only 700, with an average spend of RMB 666 (USD 98).

Audi ranks highest in satisfaction with dealer service among luxury brands, with a score of 764, while Porsche (758) ranks second and Land Rover (752) third.

Beijing Hyundai ranks highest in satisfaction with dealer service among mass market brands, with a score of 744. Beijing Hyundai is followed by Dongfeng Yueda Kia (742), ChanganFord (736) and Geely (735). Geely is the only Chinese domestic brand among top 10 in the mass market segment.

About the Study

The China Customer Service Index (CSI) Study, now in its 17th year, delivers a comprehensive analysis of vehicle owners’ service experiences and measures customer satisfaction with their dealer service by examining five key measures: service quality (22%); service initiation (21%); service advisor (19%); service facility (20%); and vehicle pick-up (18%).

The study, which examines 71 passenger-vehicle brands, is based on online panel surveys and face-to-face interviews with 42,561 new-vehicle owners who purchased their vehicle between December 2012 and May 2016. The study was fielded between December 2016 and May 2017 in 62 major cities in 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 is headquartered in Costa Mesa, California, and has offices in Shanghai, Beijing, Tokyo, Singapore, Malaysia and Bangkok serving the Asia Pacific region. JD Power is a portfolio company of XIO Group, a global alternative investments firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts

Shana Zhuang; JD Power; China; +86 21 2208 0831; [email protected]

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

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

 

Mobile Banking Surges in China; Relationship Managers Remain Critical, JD Power Finds

1970-01-01

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Bank of Communications Ranks Highest in China Retail Banking Customer Satisfaction

BEIJING: 27 July 2017 — Mobile banking has witnessed a surge of usage in China with its penetration reaching 78% in 2017, up 26-fold from just 3% in 2011, and Chinese retail bank customers now use mobile banking more than 25 times a year, on average, according to the JD Power 2017 China Retail Banking Satisfaction Study^SM (RBSS), released today.

Customers who use mobile are more satisfied (overall satisfaction score of 807 on a 1,000-point scale) than those who do not use mobile (775). This is especially true for VIP customers (834 among those who use mobile vs. 778 among those who do not use mobile). VIP customers are respondents who indicate having VIP accounts in their evaluated banks.

VIP customers also tend to use mobile banking more frequently. The study shows that 11% of VIP customers conduct financial business each day on a mobile app, twice that of non-VIP customers. Nearly half (48%) of all VIP customers manage their finances on a mobile banking app every week.

“The new, open and more efficient way of conducting banking and investment transactions through a mobile app has rapidly gained momentum in recent years,” said Winston Xue, general manager of financial services at JD Power China. “Our study has shown that mobile ties positively to banking experience and loyalty.”

The study also indicates that satisfaction is substantially higher among retail banking customers who have a relationship with a banking manager (837) than among those who do not (794). 

“While more transactions are migrating toward digital channels, relationship managers remain critical in engaging existing clients and driving new acquisitions,” Xue said.    

Six in 10 (62%) customers who have a relationship manager have seen their investments increase in the past 12 months, compared with 41% of those who do not have a relationship manager. Nearly half (49%) of customers who have a relationship manager say they “definitely would” recommend their bank, while only 35% of those without a relationship manager say the same.

The following are additional findings of the study:  

• China’s mobile banking usage is much higher than in such other markets as the United States (30%), Canada (44%) and Singapore (41%), according to JD Power studies conducted in those markets. In China, mobile is used mostly by non-VIP customers for transactions such as checking account information, deposits and bill payments. VIP customers use more investment and financial related features.

• Having a relationship manager and using a robo-advisor are not mutually exclusive. Among customers who have a relationship manager, 56% use a robo-advisor of the mobile app and 93% find robo-advisors to be useful.

Study Rankings

Bank of Communications ranks highest in retail banking customer satisfaction in China for a fourth consecutive year, with a score of 848.  HBSC, Minsheng Bank and Ping An Bank rank second in a tie with a score of 834. 

About the study

The China Retail Banking Satisfaction Study, now in its ninth year, measures customer satisfaction with their bank across six factors: transactions; product offerings; account information; facility; fees; and problem resolution. Additionally, the study examines performance improvement initiatives designed to drive customer loyalty and advocacy.
The study includes 24 banks operating in China and is based on responses from 11,585 retail banking customers in 37 cities. The study was fielded from March through May 2017.

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 is headquartered in Costa Mesa, California, and has offices in Shanghai, Beijing, Tokyo, Singapore, Malaysia and Bangkok serving the Asia Pacific region. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts

Shana Zhuang; JD Power; China; +86 21 2208 0831; [email protected]

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

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

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JD Power 2017 China Sales Satisfaction Index Study (SSI)

2017-06-29

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BEIJING: 29 June 2017— New-vehicle buyers in China are more satisfied after receiving  differentiated sales and delivery services, and are becoming increasingly open to considering additional brands, according to the JD Power 2017 China Sales Satisfaction Index (SSI) Study^SM ,released today.

At the same time, more than half (57%) of new-vehicle buyers received delivery of a new vehicle with a fuel tank that was near empty, resulting  in the lowest overall satisfaction score of 651 (on a 1,000-point scale). Sales satisfaction increases to 689 when a vehicle is delivered with a fuel tank that is above three-fourths full or with a full tank.

“In addition to filling the fuel tank, carefully designed sales and delivery processes are often very helpful in terms of improving satisfaction,” said Frank Hu, general manager of auto retail at JD Power China. “The key is to provide individualized services. A lot of processes in sales and delivery cost very little but have a huge effect on customer satisfaction. For example, overall satisfaction among buyers increases when they are introduced to service personnel at delivery. Following up with customers post-delivery also is a low-cost, high-benefit strategy.”

The study also finds that fewer new-vehicle buyers have determined in advance of shopping what brand they will purchase and buyers are also shopping more brands than in the past. When new-vehicle buyers first begin the shopping process, 70% already know the brand or model they want to purchase, down from 78% in 2016. On average, customers considered 2.3 brands in 2017, compared with 1.8 last year.

The proportion of shoppers who are open to purchasing any brand or model has increased to 30% this year from 22% last year. In 2016, dealers encountered only 0.7 rejecters for each new buyer, while this year that number has increased to 1.1 rejecters for each new buyer.

“We’ve noticed that more and more buyers are becoming open to different makes,” said Ann Xie, senior research director at JD Power China. “This trend actually provides more exciting opportunities to dealers as they are increasingly able to convert more shoppers into buyers.”

Sales Satisfaction Rankings

Audi ranks highest among luxury brands with a score of 683, marking the fifth consecutive year as the highest-ranked brand. Porsche ranks second with a score of 680. Beijing Hyundai ranks highest among mass market brands with a score of 665. Changan Ford (648) ranks second.

Following are some other study findings:

• The salesperson remains the most important factor to satisfaction among both buyers and rejecters. Salespeople who explain features on a tablet earns substantially higher satisfaction(above 686).

• Online channels are being used more oftento select vehicles. While recommendations from friends/ relatives remain the most frequent (72%) and influential (39%) information source, 65% of new-vehicle buyers used at least one online channel to research their purchase and one-fourth (25%) of them considered the online channel as the most influential.

• High satisfaction leads to loyal customers. Specifically, 62% of satisfied buyers, among whom satisfaction averages 674, say they “definitely would” service their vehicle at the selling dealer, compared with only 33% of less satisfied buyers (satisfaction averages 646) who say they “probably would” do the same.

• Satisfaction is notably higher when the buyer and salesperson agree on the vehicle price within one week. Half (50%) of all buyers were able to finalize the deal in less than one week, which increases sales satisfaction (670 for less than one week vs. 654 for more than 3 weeks).

• Overall satisfaction is higher among customers who use a loan/ installment plan (687) than among those who do not (657).  While younger buyers in China are much more likely to finance the purchase of their vehicle, 82% of all buyers in the country continue to use cash when purchasing a new vehicle.

The study, now in its 18th year, measures sales satisfaction among new-vehicle buyers (67%) and rejecters(33%). Buyer satisfaction is based on six measures (in order of importance): dealer facility (19%); salesperson (19%); deal (18%); delivery process (18%); sales initiation (17%); and online experience (8%). Rejecter satisfaction is based on five measures (in order of importance): salesperson (32%); variety of inventory (24%); dealer facility (23%); fairness of price (11%); and experience negotiating (9%).

The 2017 China Sales Satisfaction Index (SSI) Study is based on responses from 23,815 vehicle owners in 67 cities who purchased their new vehicle between May 2016 and March 2017. The study was fielded from November 2016 through May 2017.

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 is headquartered in Costa Mesa, California, and has offices in Shanghai, Beijing, Tokyo, Singapore, Malaysia and Bangkok serving the Asia Pacific region. JD Power is a portfolio company of XIO Group, a global alternative investments firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. For more information, please visit china.jdpower.com or stay connected with us on JD Power WeChat and Weibo.

Media Relations Contacts

Shana Zhuang; JD Power; China; +86 21 2208 0831 ; [email protected]

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

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