Category: China

Vehicle Dependability in China Improves; Gap between International, Domestic Brands Remains

2016-11-29

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SHANGHAI: 30 Nov. 2016 — Vehicle dependability in China continues to improve, yet Chinese domestic brands continue to lag international brands, according to the JD Power 2016 China Vehicle Dependability Study^SM (VDS), released today.

Vehicle dependability improves for the fourth consecutive year, to 141 problems per 100 vehicles (PP100) in 2016 from 156 PP100 in 2015. While domestic and international brands collectively continue to improve, there remains a 28 PP100 gap in dependability between the two groups. Domestic brands improve by 14 PP100 to 162 PP100, while international brands improve by 15 PP100 to 149 PP100.

The gap between domestic and international brands is most pronounced—40 (consider the digit rounding) PP100—in the SUV segment, the fastest growing portion of the market for new-vehicle sales. The combined average for SUVs is 125 PP100. International brand SUVs collectively average 117 PP100, while domestic brand SUVs average 156 PP100.

“Long-term reliability has a direct impact on today’s sales and tomorrow’s brand loyalty,” said Jeff Cai, general manager, auto product and quality at JD Power China. “Initial quality and long-term dependability are equally important for automakers and consumers. The top two reasons cited by consumers in China who eventually decided not to buy an SUV are price and dependability.”

The dependability problems owners of international branded SUVs report most frequently are windshield wipers/ washers not working properly (6.1 PP100); noisy brakes (5.1 PP100); and excessive fuel consumption (4.6 PP100). Owners of domestic branded SUVs most frequently cite windshield wipers/ washers not working properly (7.1 PP100); engine loses power when the air conditioner is on (6.8 PP100); and air conditioner doesn’t get cold enough (6.7 PP100). 

Other findings of the study include:

• Small Car Segment Most Improved: Most of the super segments have demonstrated steady improvement in dependability since 2014—except for the MPV and mini van segments, which show no improvement this year. Among all six vehicle types in the super segments, the small car segment has the greatest year-over-year reduction in the number of reported problems (28 PP100). 
• Most Frequently Reported Problems: In the luxury segment, features/ controls/ displays is the most frequently reported problem category, followed by driving experience and engine/ transmission. In the mass market segment, engine/ transmission is the most frequently reported problem category, followed by features/ controls/ displays. 

Dependability Rankings

Land Rover ranks highest in vehicle dependability among luxury nameplates, averaging 98 PP100. Porsche ranks second (100 PP100) and Audi ranks third (101 PP100). MINI ranks highest among mass market nameplates, with a score of 94 PP100. Volkswagen ranks second (98 PP100) and smart ranks third (117 PP100).

Models from Beijing Hyundai rank highest in five of the 15 award segments. Volkswagen and BMW each have three models that rank highest in their respective segments. 

Models ranking highest overall in their respective segments are:

• Compact Mini: smart fortwo (117 PP100)
• Compact Upper: Hyundai Verna (117 PP100)
• Midsize Basic: Volkswagen Santana (113 PP100)
• Midsize: Hyundai Yuedong Elantra (122 PP100)
• Midsize Upper Economy: MINI (94 PP100)
• Midsize Upper: Volkswagen CC (106 PP100)
• Compact Luxury: BMW 3 Series (99 PP100)
• Midsize Luxury: Audi A6L (96 PP100)
• Small SUV: Hyundai Tucson (110 PP100)
• Midsize SUV: Hyundai ix35 (115 PP100)
• Large SUV: Hyundai Santa Fe (99 PP100)
• Midsize Luxury SUV: BMW X3 (94 PP100)
• Large Luxury SUV: BMW X5 (94 PP100)
• Midsize MPV: Volkswagen Touran (133 PP100)
• Mini Van: Changan Taurus (144 PP100)

About the Study

Now in its seventh year, the study measures problems experienced during the past 6 months by original owners of 37- to 48-month-old vehicles and includes 202 problem symptoms across eight categories: engine/ transmission; vehicle exterior; driving experience; features/ controls/ displays; audio/ 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.

The 2016 study is based on the evaluations of 19,464 owners of vehicles purchased between May 2012 and August 2013. The fieldwork was conducted from May through September 2016 in 51 cities across China. This year, the study analyzes 191 models of 65 makes across 22 vehicle segments.

Media Relations Contacts

Michelle Meng; Beijing, China; +86 01 6569 2702; [email protected]

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

About JD Power 

JD Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power and its products can be accessed through the internet at asean-oceania.jdpower.com.

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

 

Vehicle Owners More Satisfied with Service at Authorized Dealers, JD Power Finds

2016-11-23

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Shanghai: 24 Nov. 2016 — Satisfaction with vehicle service is higher among vehicle owners who visit an authorized dealer than those who visit a non-authorized dealer, according to the JD Power 2016 China Service Loyalty Study^SM (SLS), released today.

The study measures customer loyalty toward authorized dealerships after 37-48 months of vehicle ownership based on their latest service experiences as well as authorized dealer visit ratio in the last 12 months. 

Overall satisfaction with service at authorized dealers averages 6.71 on a 10-point scale, compared with 6.04 at non-authorized dealers. The gap between authorized and non-authorized dealers is even more pronounced in the luxury segment than in the mass market segment (7.22 vs. 6.33, respectively).

Nearly all vehicle owners have visited an authorized dealership for service. The main reasons owners cite for selecting authorized dealers are “purchased car here” (38%); “trustworthy” (14%); and “Convenient location” (11%). Still, 23% of owners have also visited non-authorized dealers for maintenance or repair service. For owners who serviced their car at an authorized dealer before defecting to a non-authorized dealer for the next service, “competitive price” is the top reason cited (48%).

The luxury segment has a significantly lower defection rate to non-authorized dealers than the mass market segment (8% vs. 25%, respectively), although the total spending of service in the past 12 months at authorized dealers for luxury brands is more than double the spend at non-authorized dealers (RMB 3,640 vs. RMB 1,573). Comparing with mass market segment, the main reasons luxury customers cite for selecting authorized dealers are “professional technician/maintenance worker” and “use original auto parts.” The reason for selecting non-authorized dealers is “convenient location.”

“Price is not the only decisive reason that makes customers turn to non-authorized dealers,” said Frank Hu, general manager of auto service & loyalty practice at JD Power China. “The high penetration rate of authorized dealership visits in the luxury segment underscores the importance of professional service personnel and quality products in retaining customer loyalty. These compose the cornerstone of a sustainable and healthy business.”

In the luxury segment, 77% of owners say their last visit to an authorized dealer was a “very good experience and above,” compared with 50% of owners who visited a non-authorized dealer. In the mass market segment, 56% of owners say their last visit to an authorized dealer was a “very good experience and above” vs. 33% of owners who visited a non-authorized dealer.

Additional findings of the study include:

• Luxury Brands Achieve the Highest Loyalty: The luxury segment average for overall service loyalty is 815, which is 58 points above the average in the mass market segment for international brands and 116 points above the mass market average for domestic makes. 
• Dealer Customers Turn to Insurance Companies: Among owners of 3- to 4-year-old vehicles, 61% have purchased insurance four times. Their first insurance purchase was from the authorized dealership where they bought their car, and their subsequent purchases were from an insurance company.
• Few Owners Book Service Appointment Online: Only 27% of owners are aware of an online service for booking their service appointment. Among those who are aware, only 3% book their appointment via the internet. Automaker websites are the most popular online platforms used to book vehicle service (44%), followed by car maintenance software (36%). The two main benefits of using an online service booking, according to vehicle owners, are cheap price (45%) and fast response (40%). 

Study Rankings

Porsche ranks highest in overall service loyalty in the luxury segment, with a score of 832. BMW ranks second (819) and Mercedes-Benz third (817). 

Volkswagen ranks highest in the mass market segment, with a score of 802. Beijing Hyundai ranks second (801) and MINI and Renault rank third in a tie (782).

The 2016 China Service Loyalty Study (SLS) is based on evaluations from 19,542 owners of vehicles purchased from May 2012 through August 2013. The study analyzes 65 different brands and was fielded from May through September 2016 in 51 major cities across China. 

Media Relations Contacts

Michelle Meng; Beijing, China; +86 01 6569 2702; [email protected]

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

About JD Power in the Asia Pacific Region 

JD Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power and its products can be accessed through the internet at www.asean-oceania.jdpower.com.

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

 

Chinese Customers Want Audio, Communication, Entertainment and Navigation (ACEN) Features in Their New Vehicles, JD Power Study Finds

2016-10-17

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SHANGHAI: 19 Oct. 2016 — Cars with audio/ communication/ entertainment/ navigation (ACEN) features have the greatest appeal  to owners in China, yet automakers are not increasing installation rates of the technologies fast enough to meet consumer demand, according to the JD Power 2016 China Automotive Performance, Execution and Layout (APEAL) Study,^SM released today.

The study finds that vehicles equipped with ACEN features, such as vehicle health report capability, outperform those without such features by 34 points (on a 1,000-point scale). Despite the significant impact ACEN features have on the APEAL Index across all vehicle segments, installation rates are increasing only modestly. For example, the proportion of Chinese domestic vehicles equipped with in-vehicle Bluetooth has increased 10% year over year, while the proportions of international brands and luxury brands equipped with the technology have increased by 5% and 2%, respectively.  

“Equipping vehicles with ACEN features that have a broad range of capabilities that appeal to consumers represents a huge opportunity for automakers in the China market,” said Dr. Mei Songlin, vice president and managing director at JD Power. “An ongoing effort to meet owner expectations with respect to the availability and performance of the latest ACEN features is needed in order to attract and satisfy new-vehicle buyers.”

Other key findings of the study include:

• APEAL Scores Slip: The overall APEAL score averages 699 points in 2016, a 3-point decline from 2015. The APEAL score in the luxury segment averages 733, a 1-point drop, while the mass market segment averages 695, a 3-point decline. 
• Korean Automakers Lead the Way: By country of origin, Korean automakers collectively have the highest average APEAL score (760), followed by European (711), Japanese (701), U.S. (694) and domestic (677) manufacturers. International brands combined have an average APEAL score of 710, which is 33 points higher than the average for domestic makes.
• Repeat or First-Time Buyer? Vehicles owned by first-time buyers have a much lower average APEAL score (694) than vehicles owned by repeat buyers (726). The gap between those scores is attributed to a lower percentage of first-time buyers purchasing luxury vehicles (7%), compared with repeat buyers (29%). 

The China APEAL Study, now in its 14th year, serves as the industry benchmark for new-vehicle appeal. It measures 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 77 attributes across 10 vehicle categories: exterior; interior; storage and space; ACEN; seats; heating, ventilation and air conditioning (HVAC); driving dynamics; engine/ transmission; visibility and safety; and fuel economy.  

2016 China APEAL Ranking Highlights

Among luxury makes, Land Rover ranks highest with a score of 749. Porsche (742) ranks second, followed by Audi (741) and Cadillac (735). 

Dongfeng Yueda Kia ranks highest among mass market makes, with a score of 765. Beijing Hyundai (757) ranks second, followed by Dongfeng Citroen and Jeep in a tie (720 each).

Among the 13 model-level segment awards, Dongfeng Yueda Kia receives five awards for the K2, K3/K3S, K4, KX3 and Sportage R. Audi receives three awards for the Q3, A4L and A6L. Five of the highest-ranked models (Kia K2, Peugeot 301, Hyundai Sonata, Hyundai Santa Fe and Audi A4L) are also award recipients in the JD Power 2016 China Initial Quality StudySM (IQS). 

Models receiving segment awards are:

• Compact Upper: Kia K2 
• Midsize Basic: Peugeot 301 
• Midsize: Kia K3/K3S
• Midsize Upper Economy: Kia K4
• Midsize Upper: Hyundai Sonata
• Compact Luxury: Audi A4L
• Midsize Luxury: Audi A6L
• Compact SUV: Kia KX3
• Midsize SUV: Kia Sportage R
• Large SUV: Hyundai Santa Fe
• Compact Luxury SUV: Audi Q3
• Midsize Luxury SUV: Porsche Macan

The 2016 China Automotive Performance, Execution and Layout (APEAL) Study is based on evaluations from 21,706 owners of new vehicles purchased from September 2015 through May 2016. The study analyzes models in 22 vehicle segments and includes 259 different passenger-vehicle models from 71 different brands. The study was fielded from March through July 2016 in 62 major cities across China. 

Media Relations Contacts

Michelle Meng; JD Power; Beijing, China; +86 01 6569 2702; [email protected]

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

About JD Power 

JD Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power and its products can be accessed through the internet at asean-oceania.jdpower.com.

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

 

Initial Quality Affects Light-Truck Owners’ Income, JD Power Study Finds

2016-09-28

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SHANGHAI: 28 Sept. 2016 — A considerable number of owners have experienced unscheduled downtime with their new light trucks, affecting their income, according to the JD Power 2016 China Upper-Medium Light Truck Initial Quality Study^SM (LT-IQS), released today. 

Owners are experiencing significant numbers of problems with their new light trucks—an average of 505 problems per 100 (PP100) vehicles—which affects them financially not only because they have to pay for the repair, but also because the truck is often their main source of income so . 

The study finds that 6.8% of owners have encountered unscheduled downtime due to the problems they experience with their new light trucks. The average for each unscheduled downtime is 2.9 days. 

Initial quality also affects the years of replacement expectation. The study shows that the number of problems reported by owners who expect to replace their truck between 8 and 10 years of ownership is only 401 PP100. The number of problems reported by those who expect to replace their truck between 2 and 4 years of ownership is 696 PP100.

On average, light-truck owners have a monthly income between RMB 2,000 and RMB 20,000. As the initial quality of light trucks improves, so does an owner’s income. For example, when initial quality is close to industry average (505 PP100), owners’ monthly income from commercial use of their truck is less than RMB 8,000. When initial quality improves to fewer than 300 PP100, the average monthly income exceeds RMB 12,000. For a more extreme situation, 42.6% of owners report their month income is under 60,000RMB when they experience unscheduled downtime with their vehicle. In comparison, only 29% who have no unscheduled down time report their month income is under 60,000RMB.

“The light truck is often the primary source of income for their owners; thus, initial quality is vital for their family,” said Jeff Cai, general manager, auto product and quality at JD Power China. “It is quite alarming that many new-truck owners are experiencing unscheduled downtime. Poor quality will diminish owners’ willingness to recommend and repurchase the brand again.”

The study shows that owners are more willing to recommend and repurchase when the brand’s initial quality is higher. Among owners who experience no problems with their new light truck, 59% say they “definitely would” recommend the brand to family and friends and 52% say they “definitely would” repurchase the brand again. Among owners who experience more than five problems with their new light truck, only 16% say they “definitely would” recommend the brand and 4% say they “definitely would” repurchase the brand. 

Other key findings of the study include: 

• Defects/ Malfunctions Dominate Problems: Two-thirds (66%) of owner-reported problems are defect or malfunction related, while 31% are designed related. The categories with the highest problem incidences are driving experience (141 PP100), exterior (108 PP100) and engine/ transmission (96 PP100). 
• Brakes, Transmissions Put Stop to Quality: The most frequently reported problems are brakes are noisy (18 PP100); manual transmission—difficult to get in gear/ gears grind (15 PP100); and brakes don’t have enough stopping power (14 PP100). When asked to identify the problems they find most bothersome, owners most frequently cite “headlights not bright enough”; “brakes are noisy—squeaking/ squealing”; and “excessive road noise.” 
• Highways Take Toll on Trucks: Owners who drive their trucks most frequently on highways experience more problems with their vehicle (626 PP10) than those who drive their truck mostly on city roads (415 PP100).

The inaugural study measures new light-truck quality by examining problems experienced by owners within the first two to 12 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 2016 China Upper-Medium Light Truck Initial Quality Study is based on evaluations from 1,767 owners of new light trucks purchased from May 2015 through June 2016. The study includes 17 different light-truck models from nine different brands. The study was fielded from May through August 2016 in 41 major cities across China.

Media Relations Contacts

Michelle Meng; JD Power; Beijing, China; +86 01 6569 2702; [email protected]

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

About JD Power 

JD Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power and its products can be accessed through the internet at asean-oceania.jdpower.com.

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

 

Quality of Small Vehicles Leads Industry Improvement, JD Power Study Finds

2016-09-28

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SHANGHAI: 29 Sept. 2016 — Significant quality improvements in the small car and minivan segments lead the overall improvement in initial quality, according to the JD Power 2016 China Initial Quality Study^SM (IQS), released today. 

The 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 industry’s initial quality improves to 102 PP100 from 105 PP100 in 2015. The improvement is largely attributed to progress made in the quality of small vehicles. Initial quality in the small car segment is 99 PP100, an improvement of 12 PP100. The minivan segment improves to 114 PP100, a shift of 10 PP100. 

“Small vehicles are taking the lead in overall quality improvement,” said Jeff Cai, general manager, auto product and quality at JD Power China. “The market is evolving into a more mature one. In the past, small vehicles, typically with lower prices, had low quality. But this year, the small and other low-price cars have improved significantly. With outstanding quality and continuous improvements, automakers will be better positioned to gain customers’ trust and loyalty in the long run.”

Other key findings of the study include: 

• Domestic Brands Improving Quality: The domestic Chinese brands are closing the gap on the international brands in 2016, narrowing the difference to14 PP100, compared with a difference of 22 PP100 in 2015. The largest gap in quality between domestic and international brands is in the engine/ transmission category (6 PP100). 
• Chinese Owners Scorn New-Car Smell: For a second consecutive year, the most frequently reported problem is unpleasant interior smell/ odor, increasing to 16.0 PP100 this year from 14.2 PP100 in 2015.  Excessive road noise; excessive fuel consumption; excessive wind noise; and engine loses power when A/ C is on round out the top five most reported problems.
• A/ C Problems Decline, Noise Problems Increase: Air conditioning-related problems account for four of the 10 most improved problems in 2016. Conversely, four noise-related problems are among the 10 problems that have increased the most year over year. 
• Navigation System Problems Increase: An increasing proportion of new-vehicle owners have a factory-installed navigation system in their car (64% in 2016 vs. 51% in 2015). Although overall navigation systems problems have declined from 2015 (2.68 PP100 vs. 2.70 PP100, respectively), the most common problem—inaccurate navigation system—has increased to 2.0 PP100 from 1.8 PP100. 

2016 China IQS Ranking Highlights

Porsche ranks highest in initial quality among luxury nameplates with 67 PP100. Lexus (76 PP100) ranks second and Audi (83 PP100) ranks third. 

Among mass market nameplates, MINI ranks highest with 80 PP100. Beijing Hyundai (84 PP100) ranks second and FAW-Mazda (88 PP100) ranks third.

Hyundai receives three model-level awards, followed by Lexus with two. In total, 13 vehicle segments are eligible for awards in the 2016 China Initial Quality Study. Models receiving segment awards are:

• Compact Upper: Kia K2
• Midsize Basic: Peugeot 301
• Midsize: Nissan Sylphy
• Midsize Upper Economy: MINI
• Midsize Upper: Hyundai Sonata
• Compact Luxury: Audi A4L
• Midsize Luxury: Lexus ES
• Small SUV: Dongfeng Future Joyear X3
• Compact SUV: Hyundai Tucson
• Midsize SUV: Honda CR-V
• Large SUV: Hyundai Santa Fe
• Compact Luxury SUV: Lexus NX
• Midsize Luxury SUV: Porsche Macan

The 2016 China Initial Quality Study is based on evaluations from 21,706 owners of new vehicles purchased from September 2015 and May 2016. The study includes 145 different models from 54 different brands. The study was fielded from March 2016 through July 2016 in 62 major cities across China.

Media Relations Contacts

Michelle Meng; JD Power; Beijing, China; +86 01 6569 2702; [email protected]

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

About JD Power 

JD Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power and its products can be accessed through the internet at asean-oceania.jdpower.com.

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

 

Tire Manufacturers Have Much to Gain by Educating Chinese Vehicle Owners

2016-08-11

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SHANGHAI: 15 August 2016 — A large proportion of owners know very little about the tires that come equipped on their new vehicle, which significantly impacts satisfaction and loyalty, according to the JD Power 2016 China New-Vehicle Tire Satisfaction Index (NV-TSI) Study,^SM released today. 

The study, now in its fifth year, measures satisfaction among new-vehicle tire owners during the first 12 to 36 months of ownership based on four factors: appearance; durability; ride; and traction/ handling. Owners evaluate the brand of tires they have on their vehicle. The study includes four vehicle segments: luxury car; mass market car; SUV; and MPV/ mini van. Satisfaction is calculated on a 1,000-point scale.

More than half of new-vehicle owners (57% for first-time owners and 50% for repeat buyers) don’t know the brand of their original tires. Furthermore, only 1% of owners say they know their tire features “very well” and 9% say they know them “somewhat.” Such severe lack of knowledge leads to significantly lower levels of satisfaction and loyalty. Satisfaction averages 719 among owners who say they know their tires “very well,” compared with 652 among those who say they do “not at all” know their tires. 

Among owners who know their tires very well, 44% of them say they “definitely would” recommend the same brand to others and 31% say they “definitely would” repurchase the same brand as replacement tires; among owners don’t know their tires at all, only 15% “definitely would” recommend and 20% “definitely would” repurchase the same brand. 

“Since tires are the most frequently replaced components on vehicles, tire manufacturers should develop a more effective and proactive branding strategy to improve brand awareness and brand image among their customers,” said Jeff Cai, general manager, auto product and quality at JD Power China. “Manufacturers of original equipment tires need to make their brands the obvious choice when consumers make the decision to replace their tires. Moreover, building brand loyalty can protect them against lower-priced competitors.”

Other key findings of the study include: 

• Tire Satisfaction Varies by Vehicle Segment: Overall satisfaction is highest in the luxury car segment (730), followed by the SUV (682), mass market car (666) and MPV/ mini van (612) segments. 
• Experience Builds Awareness: Older owners (>35 year of age) have more knowledge of their tires than younger owners (<25 years). The study finds that about 45% of older owners can accurately name the brand of tires on their vehicles. In contrast, only 27% of younger can do the same. 
• Problems Affect Satisfaction and Loyalty: Satisfaction averages 674 among owners who do not experience any problems with their tires during the ownership period. Among the 78% of owners who have had a problem-free experience, 22% indicate they intend to repurchase the same brand and 16% indicate they will recommend the brand to others. In contrast, satisfaction drops to 577 among owners who experience three or more problems with their tires, while repurchase intent dips to 5% and recommendation intent to 13%.    

NV-TSI Study Rankings

Goodyear ranks highest in the luxury car segment for a third consecutive year, with a score of 759. Michelin ranks second (736).

Nexen ranks highest in the mass market car segment for a second consecutive year, with a score of 742. 

Michelin ranks second (706) and Kumho third (704).

Goodyear ranks highest in the SUV segment for a third consecutive year, with a score of 738. Michelin ranks second (727) and Pirelli third (698).

Maxxis ranks highest in the MPV/ mini van segment for a third consecutive year, with a score of 658. Giti ranks second (640).

The 2016 China New-Vehicle Tire Satisfaction Index Study is based on responses from 16,010 vehicle owners who purchased their vehicle between October 2012 and May 2015 and examines 37 tire brands.  The study was fielded from October 2015 through May 2016 in 57 major cities in China. 

About JD Power in the Asia Pacific Region 

JD Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power and its products can be accessed through the Internet at www.asean-oceania.jdpower.com.

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

 

Despite Stable Costs, Customer Loyalty Intentions For Dealership Service Weakening, JD Power Study Finds

2016-07-27

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SHANGHAI: 28 July 2016 — Fewer customers say they “definitely would” revisit their service dealer for post-warranty maintenance and repairs despite the fact that service costs have remained stable, according to the JD Power 2016 China Customer Service Index (CSI) Study,^SM released today.

The study, now in its 16th year, measures satisfaction among vehicle owners who have owned their vehicle between 12 and 36 months and who have visited an authorized dealer’s service department for maintenance or repair work during the past six months. The 12- to 36-month-ownership time frame typically represents a substantial portion of the vehicle warranty period. The study examines five factors to determine overall customer satisfaction with dealer service (in order of importance): service quality (22%); vehicle pick-up (21%); service facility (20%); service advisor (18%); and service initiation (18%). The satisfaction score measures the performance of authorized dealers in meeting customers’ expectations of their after-sales service experience. Satisfaction is measured on a 1,000-point scale.

Only 22% of customers in the mass market segment and 34% of customers in the luxury segment in 2016 say they “definitely would” revisit their service dealer for post-warranty services, a decrease from 34% and 44%, respectively, in 2015. Additionally, customers are visiting their authorized dealer less often this year. On average, vehicle owners in 2016 have visited their dealership 2.9 times in the previous 12 months, down from 3.4 in 2015. Customers tend to think the price they received at authorized dealers is not reasonable enough. Customers’ perception of servicing costs to be reasonable has decreased to 87% in 2016 from 94% in 2015. However, the study finds that maintenance service costs at authorized dealerships have remained fairly stable (RMB 660 in 2016 vs. RMB 642 in 2015).

“Clearly, there is a gap between customers’ perceptions of price reasonableness and actual price paid, which significantly impacts loyalty and advocacy,” said Frank Hu, general manager, auto service and loyalty at JD Power China. “Authorized dealers need to put more effort into turning around customers’ perceptions, especially when those perceptions contradict the actual facts, in order to gain customers’ trust and long-term loyalty.”

Hu noted that the service advisor plays a critical role in the dealer-customer relationship. “Explaining costs as well advising the customers on the services they need, even recommending additional services skillfully when necessary, are critical to nurturing trust and improving satisfaction,” said Hu. “Authorized dealers need to make sure their customers are willing to return throughout their ownership life cycle.” 

The study finds that customers in China are significantly more satisfied when the dealership provides a price estimate prior to service, compared to when such estimate is not provided (687 vs. 613, respectively), and when they receive an explanation of  the charges after service is completed (687 vs. 606).

Other key findings of the study include:

• Overall Satisfaction Improves; Korean Brands Have Highest Satisfaction: Overall satisfaction in the luxury segment improves to 742 in 2016 from 717 in 2015, while satisfaction in the mass market segment improves to 674 from 664. In the mass market segment, Korean brands rank highest for a fifth consecutive year, with an average score of 780. Following Korean brands are European (696), U.S. (684), Japanese (664) and Chinese (626) brands. Chinese and European brands each improve by 26 points year over year.
• Domestic Chinese Brands Are Improving: The domestic brands continue to improve in after-sales services, but still lag behind the foreign players. The gap in scores between international and domestic makes in the mass market segment has narrowed to 71 points in 2016 from 91 points in 2015.
• Service Time Management Impacts Customer Satisfaction: As service time increases, satisfaction drops significantly. In the luxury segment, when service time is 2 hours, satisfaction is above the segment average (752 vs. 742, respectively); yet, in the mass market segment, when service time is 2 hours, satisfaction is very close to average (673 vs. 674). When service time is 3 hours, satisfaction drops to 718 in the luxury segment and 660 in the mass market segment.
• Number of Female Customers Increases; Female Satisfaction Is Lower: In 2016, female customers account for 40% of service customers, an increase from 23% in 2010. Satisfaction is lower among female customers than male customers in both the luxury (13 points lower) and mass market (18 points lower) segments.

CSI Study Rankings

Audi ranks highest among luxury brands, with a score of 815. In the mass market segment, Dongfeng Citroën (814) ranks highest, followed by Dongfeng Peugeot (806) and Beijing Hyundai (786).

The 2016 China Customer Service Index (CSI) Study, which examines 74 passenger vehicle brands, is based on street intercept and face-to-face interviews with 18,577 new-vehicle owners who purchased their vehicle between October 2012 and May 2015. The study was fielded between October 2015 and May 2016 in 57 major cities in China.

Media Relations Contacts

Michelle Meng; JD Power; Beijing, China; +86 01 6569 2702; [email protected]

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

About JD Power

JD Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power and its products can be accessed through the Internet at asean-oceania.jdpower.com.

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

 

Omnichannel Experiences Boost Retail Banking Customer Satisfaction, JD Power Study Finds

2016-07-05

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SHANGHAI: 7 July 2016 — The more retail channels customers use—such as the branch, ATM and online—the more satisfied they are with their bank, according to the JD Power 2016 China Retail Banking Satisfaction Study^SM (RBSS), released today.

The study, now in its eighth 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 finds that most highly satisfied customers are using approximate four channels, with an average score of 879. Satisfaction levels are significantly lower when customers use approximately two channels (637). Using multiple banking channels—also known as omnichannel banking—includes in-person (branch office), ATM, online, live phone, automated phone and mobile.

“The omnichannel approach acknowledges the fact that today’s retail banking customers require several different types of banking interactions on a very situation-dependent basis,” said Geoff Broderick, vice president and general manager at JD Power. “The key for banks is striking the right balance between offering a number of flexible options that address evolving customer needs and prioritizing channels that deliver the right mix of profitability and an optimized customer experience.”

Overall satisfaction averages 806 in 2016, a 19-point improvement from 2015. Overall satisfaction is higher among customers who access mobile banking than among those who don’t (830 vs. 784, respectively).  Additionally, satisfaction is higher among customers who use community banks than among those who don’t (843 vs. 798, respectively).

The percentage of customers using mobile banking has increased to 55% in 2016 from 21% in 2014, while the percentage of in-person banking has decreased to 88% from 92% in 2014. Customers use online platforms for high-frequency but low-value activities, with the three most frequent mobile banking activities including checking balances, transferring funds between accounts and reviewing statements. Customers who visit bank branches do so most often to deposit or withdraw cash, transact with certificate of deposit, transfer funds inter/intra bank and purchase investment products, all of which are generally high-profit transactions for banks.

Retail Banking Customer Satisfaction

Bank of Communications ranks highest in retail banking customer satisfaction in China for a third consecutive year, with a score of 846. Bank of Communications performs particularly well in the transactions (32 points above the study average), account information (26 points above average) and facility (36 points above average) factors.

Ping An Bank (843) ranks second and performs particularly well in problem resolution (182 points above average). Hua Xia Bank (839) ranks third.

The 2016 China Retail Banking Satisfaction Study (RBSS) includes 15 banks operating in China and is based on responses from 10,167 retail banking customers in 37 cities. The study was fielded from March through May 2016.

Media Relations Contacts

Michelle Meng; JD Power; Beijing, China; +86 01 6569 2702; [email protected]

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

About JD Power

JD Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power and its products can be accessed through the Internet at asean-oceania.jdpower.com.

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

 

Sales Satisfaction Declines Despite Heavy Price Discounting in Auto Retailers, JD Power Finds

2016-06-28

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SHANGHAI: 30 June 2016 — Despite automakers and dealers offering larger discounts to vehicle buyers than in 2015, overall sales satisfaction in China has declined from last year, according to the JD Power 2016 China Sales Satisfaction Index (SSI) Study,^SM released today.

The study, now in its 17th year, measures customer satisfaction with the new-vehicle sales experience based on five factors (in order of importance): delivery process (23%); sales initiation (21%); deal (20%); dealer facility (19%); and salesperson (17%). Sales satisfaction is calculated on a 1,000-point scale.

In the luxury segment, the average discount per vehicle has increased to RMB 33,468 in 2016 from RMB 17,108 in 2014, and the average discount per vehicle in the mass market segment has increased to RMB 9,303 from RMB 7,316. However, overall sales satisfaction has decreased in both the luxury and mass market brand segments, presenting a significant challenge to the industry to balance between discounting and delivering a fulfilling sales experience.

“Despite these challenges, we believe tremendous opportunities exist for dealers to make an impact on the sales experience beyond focusing on discounting,” said Jason Jiang, general manager, auto sales and marketing at JD Power. “Personalized one-on-one services during and after the purchase are more likely to impress shoppers and maximize the value of a long-term relationship with customers.” For example, study findings show that in both the mass market and luxury segments, satisfaction is significantly higher among customers who say their salesperson made them “feel pleasant.”

Additionally, satisfaction increases by 54 points when the vehicle is delivered to the customer with a special ceremony. Other study findings show that vehicle performance is playing an increasingly important role in the purchase decision. For the first time in the study, performance is the third most influential reason new-vehicle shoppers choose a specific make and model, cited by 11% of customers in 2016, up from 6% in 2015.

“Valuing vehicle performance is good news for dealers, as consumers are spending more time online shopping, but the best opportunity for them to experience vehicle performance is to visit a dealer,” said Jiang. “Dealers must use the vehicle to impress shoppers during the test drive and engage customers beyond the final sale.”

Overall satisfaction among new-vehicle owners who were offered the option to choose a different test route during the test drive is 682, compared with 638 among those who were not offered a test route option.

Other key findings of the study include:

• Using Internet as Information Source Saves Money: On average, new-vehicle owners who used the Internet during the shopping process received a discount of RMB 12,856, compared with RMB 10,130 among non-Internet users. Additionally, satisfaction is higher among owners who used the Internet as an information source while shopping (672) than among those who did not (657).
• 1990s Generation Presents Unique Needs: Compared to other generations, consumers born in the 1990s have stronger needs for finance and insurance services when buying a new vehicle. The study shows more owners in the 1990s generation purchase their vehicle via a loan/installation (21%) and buy the car insurance recommended by the dealer (79%), compared with those in the older generations. These service offerings significantly impact satisfaction scores. For example, satisfaction among those in the 1990s generation whose dealer recommended their preferred insurance company is 55 points higher than among those whose dealer did not recommend their preferred insurer (691 vs. 636, respectively).

Audi ranks highest among luxury brands in satisfaction with the new-vehicle sales experience for a fourth consecutive year, with a score of 751. This also marks the seventh consecutive year Audi has ranked highest in the study.¹

Dongfeng Citroën ranks highest among mass market brands, with a score of 793. Beijing Hyundai ranks second (787) and Dongfeng Peugeot ranks third (772).

The 2016 China Sales Satisfaction Index (SSI) Study is based on responses from 15,180 vehicle owners who purchased their new vehicle between May 2015 and February 2016. The study was fielded from November 2015 through April 2016.

About JD Power

JD Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power and its products can be accessed through the Internet at asean-oceania.jdpower.com. About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

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¹ Audi ranked highest in the 2010, 2011 and 2012 studies, when all brands were included in one segment.

 

Quality Perception Gap Emerges in Chinese Auto Consumer Market, JD Power Finds

2016-05-20

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SHANGHAI and DETROIT: 23 May 2016 — A perception gap has emerged among Chinese auto consumers when it comes to automobile quality.  According to the JD Power 2016 China New-Vehicle Intender Study^SM (NVIS), released today, 12 auto brands that have been flagged as having a low perception of quality among prospective buyers have actually been found to score highly in the JD Power 2015 China Initial Quality Study^SM (IQS). Conversely, seven brands that have a high perception of quality among prospective buyers have scored poorly in JD Power’s owner-focused quality study.

The China NVIS, now in its eighth year, is designed to provide automakers with key consumer insights by examining brand awareness, brand perception, make and model consideration, purchase consideration and information sources, as well as perceptions of various models among new-vehicle intenders. New-vehicle intenders are defined as consumers who intend to purchase a new passenger vehicle within the next 12 months.

“The dichotomy forming between brands that have a low perceived level of quality among purchase intenders but a very high level of actual quality among vehicle owners is a significant challenge for manufacturers in China,” said Geoff Broderick, vice president and general manager, Asia Pacific Operations, JD Power. “As we’ve seen repeatedly, good reputation is the first consideration over the past two years when consumers purchase a car; if the real-world experience does not match up with their expectations, it could create lasting problems for brands.”

Following are the some key findings in the 2016 study:

• Quality Perception Gap Between Owners and Intenders Emerges: Among the 50 brands covered in the study, 12 brands are perceived as having low vehicle quality by intenders, whereas in the 2015 China Initial Quality Study—which measures new-vehicle quality by examining the problems experienced by owners within the first 2-6 months of ownership—those brands are found to have high quality as evaluated by owners. Meanwhile, seven brands are perceived as having high quality by intenders, but as having low quality by actual owners.

• 40% of Intenders Express Interest in New-Energy Vehicles (NEVs): China’s NEV market is developing rapidly. China’s 13^th five-year plan states that by 2020, accumulated production and sales volume of NEVs should exceed 50 million. The market reaction to the NEV policy is positive: 56% of new-vehicle intenders feel optimistic about the popularity (market share) of NEVs in China, compared to 15% for gasoline vehicles. The China NVIS also shows that nearly 40% of intenders indicate a willingness to consider purchasing a new-energy vehicle within the next 12 months, which translates into a sales opportunity with roughly 9 million vehicles. ^[1]

• Demand and Preference for In-Vehicle Features Varies Among Intender Segments: A significant disparity exists among the different segments of the customer population. The 2016 NVIS divides the total customer population into five segments: young & conforming; trendy & personal; rational & pragmatic; decent & elite; and traditional & frugal. Decent & elite and rational & pragmatic intenders have the highest demand for safety features, while voice recognition and rear screen are more preferable among trendy & personal intenders. 

• Flexible Battery Options Drive Up Consideration Rate for NEVs: Nearly 75% intenders are interested in NEVs with replaceable batteries, and 75% of intenders prefer to rent a battery from a dealer. If the cost of the battery is deducted from the total retail price, a high percentage of rejecters—customers who shop for a NEV but ultimately do not buy one—say they would reconsider purchasing an NEV (71% cite “price is high” as a reason for rejecting vs. 67% citing “maintenance fee is high”).

“China’s new-energy vehicle market is one of the most interesting and important areas within the entire automotive sector,” said Broderick. “However,  favorable policies for NEVs will expire eventually, so, manufacturers should start identifying potential customers and understanding their behavior now to thrive amidst what will surely be an increased level of  competition.”

List of models with the highest rates of consideration in each vehicle segment:

• ŸCompact Mini: smart fortwo
• Compact: Chevrolet Sail
• Compact Upper: Volkswagen Polo
• Midsize Basic: Buick Excelle
• Midsize: Chevrolet Cruze
• Midsize Upper Economy: Volkswagen Sagitar
• Midsize Upper: Buick Regal
• Compact Luxury: Audi A4L
• Midsize Luxury: Audi A6L
• Large Luxury: Audi A8L
• Compact SUV: Buick Encore
• Midsize SUV: Volkswagen Tiguan
• Large SUV: Buick Envision
• Compact Luxury SUV: Audi Q3
• Midsize Luxury SUV: Audi Q5
• Large Luxury SUV: Audi Q7
• Compact MPV: Dongfeng Future Joyear
• Large MPV: Buick GL8
• Sporty: Volkswagen Scirocco

The study also includes a brand influence score (BIS), which measures familiarity and favorability of automotive brands among new-vehicle intenders in China. BMW achieves a BIS of 685 on a 1,000-point scale, followed by Audi (659), Mercedes-Benz (645), Shanghai Volkswagen (640) and FAW-Volkswagen (634).

The 2016 China New-Vehicle Intender Study is based on responses from 10,864 new-vehicle intenders. The study includes 63 brands and was conducted online from January to March 2016 in 78 cities across China.

Media Relations Contacts

Michelle Meng; JD Power; Beijing, China; +86 01 6569 2702; [email protected]

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

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