Category: India

Excessive Tyre Wear Most Bothersome Problem for Tractor Owners in India, and is Notably Aggravated by Tractor Use in Non-Farming Activities, JD Power Finds

2017-06-20

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SINGAPORE: 22 June 2017 — Overall satisfaction among tractor owners in India improves almost 20% from last year, according to the JD Power 2017 India Tractor Product Performance Index (PPI) Study,^SM echoing upbeat farm sentiment fueled by healthy monsoons. 

The study, now in its third year, examines satisfaction with tractor performance among owners of 12- to 24-month-old tractors. Overall product performance satisfaction is measured in two indices: machine performance and quality and reliability. In the machine performance index, the study captures tractor owners’ evaluations in seven categories (in order of importance): hydraulic and couplings; driveability; engine and transmission; overall styling and design; driving comfort; tractor structure; and tyres. The quality and reliability index covers owners’ experiences and ratings of actual and perceived quality issues. 

Tractor owners’ overall satisfaction with product performance improves to 823 (on a 1,000-point scale), a 52-point increase from 2016. The surge in satisfaction is evident in both the machine performance and quality and reliability indices.

The study measures the number of problems owners experience with their tractor across 88 problem areas. Problems are summarised as number of problems experienced per 100 tractors (PP100), with a lower score reflecting higher quality. The number of reported problems has declined, as the average PP100 at the industry level is 150 PP100 in 2017, down from 245 PP100 last year.

Excessive or uneven tyre wear continues to be the most frequently reported problem for a third consecutive year. It is also noted as the most bothersome problem by tractor owners, with overall satisfaction declining by 99 points when owners report problems related to their tractor tyres vis-à-vis when such problems are not reported. The increasing use of tractors for non-farming operations aggravates the issue further, as problem counts on excessive tyre wear increase by 6.5 PP100 when the tractor is also used for non-agricultural applications vs. when its use is solely reserved for farm applications. The study also notes that a higher proportion of owners who use their tractor for non-agricultural purposes have replaced and re-treaded their original tyres, in comparison to those who have used their tractor only for farming activities. 

“Tyre wear can result in higher fuel consumption as well as an uncomfortable and unstable ride,” said Yukti Arora, manager at JD Power. “Customers who report excessive or uneven tyre wear provide much lower ratings on fuel efficiency, traction and ride smoothness of their tractor. When tractors are used for non-farming activities, improper tyre pressure, changing ground-surface conditions from fields to paved roads, and uneven load distribution during haulage operations can cause tyres to wear faster. In order to improve satisfaction with the original tyres, manufacturers and dealers should educate tractor owners on proper tyre maintenance for enhanced performance and extended tyre life.”

While the incidence of problems reported by tractor owners in 2017 has decreased to 49% from 56% last year, the resulting strain on customer satisfaction is much higher this year. “With increased penetration of superior quality products and luxury items, improved information accessibility and enhanced exposure to urban influences, customers in rural India are now more demanding than before and expect higher quality standards from their tractor,” said Arora.  

The overall product performance index score drops significantly by 90 points when customers report problems with their tractor versus when no problems are recalled. “While tractor OEMs continue to compete aggressively on improving their product’s quality to match mounting aspirations and evolving perspectives of customers in rural India, sophisticated product offerings with minimal defects that give customers a ‘bang for their buck’ have become an indispensable requirement for gaining acceptance in the rural market,” said Arora. “Indeed, OEMS that can deliver superior product quality will be best positioned in this developing market.” 

Study Rankings

The India Tractor Product Performance Index Study ranks tractors in the following segments: below 31 horsepower; 31-40 horsepower; 41-50 horsepower; and above 50 horsepower.

Eicher ranks highest in the below 31 HP segment with a score of 856 and performs particularly well across three of seven machine performance categories.

New Holland ranks highest in the 31-40 and 41-50 HP segments, scoring 862 and 866, respectively.  New Holland leads in all seven machine performance categories in both of these HP segments. 

Mahindra ranks highest in the above 50 HP segment with a score of 889, and achieves the highest score across five machine performance categories.

About the Study

The 2017 India Tractor Product Performance Index Study is based on evaluations from 3,440 tractor owners across 14 states. The study was fielded from December 2016 to April 2017 and includes owners who purchased a new tractor between December 2014 and March 2016 from an authorized dealership.

Media Relations Contacts

Aisling Carty; JD Power; Singapore; 65-6733 8980; [email protected]

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

About JD Power in the Asia Pacific Region

JD Power has offices in Singapore, Bangkok, Kuala Lumpur, Beijing, Shanghai and Tokyo 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. J. D. 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. Information regarding JD Power and its products can be accessed through the Internet at india.jdpower.com

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

 

Increasing Sales Drives Dealer Satisfaction in India as Economic Optimism Rises, JD Power Finds

2017-05-22

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SINGAPORE: 25 MAY 2017 — More than half of all dealers across the three largest vehicle segments in India—passenger vehicles, two-wheelers and commercial vehicles—express confidence for a profitable financial year as customer buying sentiment continues to improve, according to the JD Power 2017 India Dealer Satisfaction with Automotive Manufacturers Index (DSWAMI) Study^SM .

Passenger Vehicles

More than half (58%) of all passenger vehicle dealerships in India expect to generate a profit in fiscal year 2017, up from 49% last year. Only 15% of dealers anticipate a loss, the lowest percentage in the study’s history. In addition to extending financial support to their dealers to ensure their viability, automakers are making concerted efforts to improve their systems, resulting in fewer delays and discrepancies. In 2017, 22% of dealers indicate they have not experienced a delay in the delivery of vehicles, up from 16% in 2016.

“It is encouraging to see that automakers are dedicated to enhancing their systems so that information can be relayed without error or delay,” said Shantanu Nandi Majumdar, director at JD Power. “With the overall Indian economy and the automotive industry on the road to recovery, manufacturers that are committed to extending this support are more likely to develop stronger ties with their franchise.”    

Two-Wheelers

Being measured for the first time in the study, dealer satisfaction with two-wheeler manufacturers averages 780 (on a 1,000-point scale), with 54% of all two-wheeler dealerships expecting their financial performance this year to be better than the previous year, and half expecting to be profitable.

However, nearly one-fourth (24%) are disappointed with management’s concern regarding dealer viability and 78% believe manufacturers need to improve relations with dealers. This is a lesser concern for dealers in India’s six largest cities where one-fifth (21%) are disappointed with the extent of financial support provided, compared with 28% in the rest of the country.  

Commercial Vehicles

Commercial vehicles are measured in the study for the first time. Across the nine factors that compose the index, satisfaction with product ranks highest among dealers at 806. Nine out of 10 dealers indicate that the manufacturer has the range of vehicles to compete effectively in the market.

Marketing and sales activities, a key factor in the study, has the lowest overall score in the study with one-fourth of commercial vehicle dealers indicating they are disappointed with the variety of sales promotions (26%) and reasonable dealer advertising allowance (27%).

“As 2017-18 gears up for new model launches, facelifts and new variants across the three vehicle segments, savvy and effective marketing strategies will be the key to higher sales and enhanced brand image,”   Majumdar said. “With more and more touchpoints in the purchase journey becoming digital, the next few years are likely to see a sharp rise in digital marketing spend by manufacturers.”

Following are additional findings of the 2017 study:

• Dealer satisfaction affects loyalty: Across the three vehicle segments—passenger vehicle, two-wheeler and commercial vehicles—more than 90% of the dealers in the top quartile of satisfaction indicate that they are likely to be working with the same vehicle manufacturer for at least another two years. In contrast, among dealers in the bottom quartile of satisfaction, less than 70% of dealers expect to be working with the same automaker in two years’ time.

• Performance rewards/incentives influence satisfaction: Dealers who are incentivized with the opportunity to expand their current business score higher than those who are given cash or awards/trophies. Three-fourths of commercial vehicle (72%) and passenger vehicle (77%) dealers say that their manufacturer repays them by providing means to expand their business. Among two-wheeler dealerships, this proportion is notably lower at 59%.

Study Rankings

In the passenger vehicle segment, Toyota (938) ranks highest in dealer satisfaction for the seventh consecutive year, performing particularly well across all factors. Maruti Suzuki ranks second with a score of 920, followed by Renault (914).

Royal Enfield, with a score 868, ranks highest in dealer satisfaction among manufacturers of two-wheelers, followed by TVS at 834. Honda ranks third with 808.

In the commercial vehicle category, Mahindra ranks highest in dealer satisfaction with a score of 890. Ashok Leyland ranks second with 801, followed by Tata (777).

About the Study

Now in its seventh year, the India DSWAMI Study measures dealer satisfaction with vehicle manufacturers or importers in India and identifies dealer attitudes regarding the automotive retail business. Dealerships of two-wheeler and commercial vehicle manufacturers in India are covered for the first time in the 2017 study. Overall dealer satisfaction is determined by examining nine factors (in order of importance): sales team; marketing and sales activities; support from the manufacturer; product; vehicle ordering and delivery; training; warranty claims; after-sales team; and parts.

The 2017 study is based on responses from 2,358 dealer principals or dealership general managers located in more than 200 cities throughout India. The study was conducted in association with the Federation of Automobile Dealers Associations (FADA) and was fielded from January through March 2017.

Media Relations Contacts

Aisling Carty; JD Power; Singapore; 65-6733 8980; [email protected]

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

About JD Power in the Asia Pacific Region

JD Power has offices in Singapore, Bangkok, Kuala Lumpur, Beijing, Shanghai and Tokyo 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 india.jdpower.com.

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

 

Low Customer Awareness of OE Tire Brands Can Affect Loyalty

2017-03-27

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Singapore: 28 March 2017 — Lower visibility of tire brands among customer affects their relationship and confidence with those brands, according to the JD Power 2017 India Original Equipment Tire Customer Satisfaction Index (TCSI) Study,^SM released today.

The study, now in its 17th year, measures satisfaction among original equipment tire owners during the first 12 to 24 months of ownership across four factors (listed in order of importance): appearance; ride; durability; and traction/handling.

The study finds that 34% of customers cannot recall their tire brand. Further, only 58% of these customers say they “definitely would” repurchase the original brand, as compared to 65% of those customers who could identify their brand. In addition, the preference for OE-fitted tire brand replacement has declined in the past five years to 46% in 2017 from 54% in 2013.

“Since tire brand perception is a key driver when considering replacement tires, it may be prudent for the tire manufacturers to better engage with customers during the early stages of vehicle ownership,” said Kaustav Roy, director, JD Power. “A positive product experience, coupled with sustained customer engagement, is likely to help drive the replacement demand.”

Following are some key findings of this year’s study:

• Overall OE tire customer satisfaction averages 873 points (on a 1,000-point scale), with no change from 2016.
• Tire satisfaction varies with vehicle segment. The van segment (883) leads the market this year, while SUV scores lowest (848).
• Tire quality improves with a very low problem incidence rate of 4% compared with 8% last year.
• The study finds that 84% of owners who are highly satisfied (overall satisfaction of 962 and above) with their original tires say they “definitely would” recommend their tire brand. Among customers who are less satisfied (820 and below), only 35% say they “definitely would” recommend their tire brand.

Study Rankings

Ceat ranks highest in overall customer satisfaction (893) and performs well in the appearance factor. MRF ranks second (878).

The 2017 India Original Equipment Tire Customer Satisfaction Index (TCSI) Study is based on 3,346 responses from new-vehicle owners who purchased their vehicle between May 2014 and August 2015. The study was fielded between May and August 2016.

Media Relations Contact

Geno Effler; JD Power; Costa Mesa, California, USA; 001‐714-621-6224; [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. Together, the five 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.

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

 

Newly Launched Models Perform Better than Carry-Over Models on APEAL Satisfaction, JD Power Finds

2017-03-27

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NEW DELHI: 30 March 2017 — Buyers of newly launched two-wheeler models have higher satisfaction than buyers of carry-over models, according to the JD Power 2017 India Two-Wheeler Automotive Performance, Execution and Layout (2WAPEAL) Study,^SM released today. However, satisfaction declines if buyers face problems with vehicle quality during the initial ownership period.

The study is a key industry benchmark that measures owners’ emotional attachment and level of excitement for new two-wheelers during the first two to six months of ownership. The study examines 34 attributes across six performance categories (in alphabetical order): control switches/ locks; engine and transmission performance; fuel economy; looks and styling; ride and handling; and seats. Overall APEAL performance is reported as an index score based on a 1,000-point scale, with a higher score indicating higher satisfaction.

In the motorcycle category, the newly launched models not only generate higher APEAL satisfaction than carry-over models from last year (831 vs. 826, respectively), but also perform better in terms of initial quality problems^[1] experienced by buyers (139 PP100^[2] vs. 152 PP100, respectively).

Among scooters, satisfaction with the newly launched models is 12 points lower than for carry-over models (817 vs. 829, respectively). The reason is that newly launched scooter models fare worse than carry-over models with initial quality problems (146 PP100 vs. 126 PP100, respectively).

“Two-wheeler manufacturers launch multiple new models each year that offer contemporary looks, styling and increased feature contenting,” said Kaustav Roy, director at JD Power, Singapore. “However, the quality of execution is pivotal to satisfaction. Buyers in India have a wide range of two-wheelers to choose from, thus it would be prudent for OEMs to ensure that their new products are of improved quality to benefit from sustained acceptance by customers.”

Following are some key findings of this year’s study:

• Satisfaction leads to advocacy: Among highly satisfied owners (overall satisfaction of 904 points and above), more than two-thirds (70%) say they “definitely would” recommend their two-wheeler to a friend or relative, compared with just 37% of highly dissatisfied owners (overall satisfaction below 772) who would offer a similar recommendation.
• Initial quality has a strong influence: Satisfaction among owners who have not experienced any initial quality problem (62%) with their two-wheeler during ownership is 66 points higher than among owners who report a problem (852 vs. 786, respectively).
• Explanation of features and benefits improves APEAL satisfaction: Overall satisfaction among owners who received an explanation about vehicle features and benefits during the delivery process (78%) averages 51 points higher than among those who did not receive such information (841 vs. 790, respectively).
• Greater satisfaction with looks and styling of newly launched two-wheelers: Satisfaction with the looks and styling of their vehicle is higher among owners of newly launched two-wheelers compared to that of buyers of two-wheeler models that were carried over from last year (846 vs. 837, respectively).

“Because visual appeal—looks and styling—is the main purchase reason most often cited by buyers of newly launched two-wheelers, a more regular cycle of product styling updates by manufacturers would resonate well with consumers,” said Rajat Agarwal, two-wheeler industry expert at JD Power, Singapore.

Results by Segment

Award recipient segments include scooters (executive) and motorcycles (economy, executive, upper executive and premium).

In the scooter segment, Honda Activa I (844) ranks highest among executive models.

In the motorcycle segment, debutant Honda Livo and TVS Sport rank highest in a tie (842 each) among economy models, and Hero Super Splendor (836) ranks highest among executive models. Bajaj Avenger 150 (846), a debutant model, ranks highest among upper executive models while another debutant model, Honda CB Hornet 160R (858), ranks highest among premium models.

The 2017 India Two-Wheeler Automotive Performance, Execution and Layout (2WAPEAL) Study is based on evaluations from 9,406 owners who purchased a new vehicle between March 2016 and October 2016. The study includes 87 two-wheeler models from 10 makes, and was fielded from September-December 2016 in 45 cities across India.

Media Relations Contact

Geno Effler; JD Power; Costa Mesa, California, USA; 001‐714-621-6224; [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. Together, the five 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.

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

 

Improved Communication Essential to Enhance Customer Satisfaction With After-Sales Service, JD Power Finds

2017-04-25

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NEW DELHI: 27 April 2017 — When service dealers effectively communicate with customers at key junctures while servicing a two-wheeler at an original equipment (OE)-authorized service center, overall customer satisfaction notably improves, according to the JD Power 2017 India Two-Wheeler Customer Service Index (2WCSI) Study^SM.

“While the process-related customer interactions start and end at the service facility, the communication process starts long before a service is scheduled and lasts long after the work has been completed,” said Kaustav Roy, director at JD Power, Singapore. “Improved execution of communication standards is crucial not only to improving service satisfaction, but also to the dealer and manufacturer to benefit from increased customer loyalty and advocacy.”

The study, now in its second year, measures customer satisfaction with the after-sales service experience at OE-authorized service centers during the first 12-24 months of ownership. The study measures overall satisfaction in five factors (listed in order of importance): vehicle pick-up (22%); service advisor (21%); service quality (20%); service facility (19%); and service initiation (18%). Overall customer satisfaction is measured on a 1,000-point scale.

Satisfaction with the service experience is driven by process and communication. The industry performs strongly on executing process-based activities, with 70% of customers saying their service center performed five or more of the six process standards. But only one in three (36%) say the center delivered on 10 or more of the 12 communication standards during their last service visit.

The study finds that among these two types of activities, communication standards provide greater opportunities for improving customer satisfaction. The 36% of customers who note having received 10 or more communication standards are more satisfied (810) than those who received five or more process standards (774).

Customer satisfaction also can be improved by offering facilities that aid in improving customer convenience when scheduling and executing a service visit. The 14% of customers who were offered vehicle pick/drop at or from their home/office (14%) are more highly satisfied than those who were not (774 vs. 741, respectively).

“Service dealers are increasingly offering more customer-centric benefits such as pick/drop, the ability to pre-schedule a service visit through an appointment and express service,” said Rajat Agarwal, two-wheeler industry expert at JD Power, Singapore. “Owners recognize the benefits of these services and appreciate the actions that dealers and manufacturers are taking to provide for a more convenient and satisfying service experience.” 

Following are key findings of the 2017 study: 

• Room to improve with convenience: Among the five study factors, satisfaction is highest in service facility (753) and lowest in vehicle pick-up (737).

• Schedule the service: Satisfaction is higher among customers who schedule their service (26%) than among those who drop by the service dealer without an appointment (762 vs. 740, respectively).

• Customers like express service option: Satisfaction is higher among customers who were offered express service (21%) than among those were not (773 vs. 738, respectively).

• Higher satisfaction drives loyalty and advocacy: Highly satisfied customers are more likely to revisit an authorized service dealer even after the warranty period expires. Nearly thrice as many highly satisfied customers (overall satisfaction scores of 859 and higher) say they “definitely would” revisit the service dealer for post-warranty service (70%), compared with only 22% of highly dissatisfied customers (scores of 656 and lower). Additionally, service experience was also found to have an effect on brand advocacy. Nearly four-fifths (79%) of highly satisfied customers say they “definitely would” recommend their two-wheeler make to friends and family, compared with only 32% of highly dissatisfied customers.

Study Rankings 

TVS ranks highest in customer satisfaction with a score of 782, performing particularly well in all five factors. Honda ranks second with a score of 749. Overall customer satisfaction with two-wheeler after-sales service is 746. In the two-wheeler segments, the customer satisfaction index (CSI) score averages 750 for scooters and 744 for motorcycles.

The 2017 India 2WCSI Study is based on evaluations from 7,310 two-wheeler owners in 45 cities across India. These owners purchased a new two-wheeler between November 2014 and March 2016 and had a service experience within three months of evaluation. The study was fielded from November 2016 to March 2017.

Media Relations Contacts

Aisling Carty; JD Power; Singapore; Phone +65-67338980; [email protected]

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

About JD Power in the Asia Pacific Region

JD Power has offices in Singapore, Bangkok, Kuala Lumpur, Beijing, Shanghai and Tokyo 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.india.jdpower.com.

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

 

Instances of Initial Quality Problems for Two-Wheelers Increase Rapidly with Kilometres Driven during First 6 Months of Ownership, JD Power Study Finds

2017-03-07

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NEW DELHI: 8 Mar. 2017 — The number of initial quality problems reported by two-wheeler owners rapidly increases with kilometres driven, according to the JD Power 2017 India Two-Wheeler Initial Quality (2WIQS) Study,^SM released today.

The study measures problems owners experience with their new two-wheeler during the first two to six months of ownership. It examines 138 problem symptoms covering seven categories (listed in order of frequency of reported problems): engine; brakes; gauges and controls; fit and finish; lights/ electricals; ride and handling; and transmission. All problems are summarized as the number of problems per 100 vehicles (PP100). Lower PP100 scores indicate a lower rate of problem incidence and therefore higher initial quality.

The study finds that among two-wheeler owners in the six-month ownership period, those who accumulated mileage of more than 3,000 kilometres (50%) reported significantly more initial quality problems than buyers who accumulated 3,000 kilometres or fewer (159 PP100 vs. 126 PP100, respectively).

“Quality deterioration and rapid increase in initial quality problems during the first six months of ownership can impact the customer’s perception of the product and the OEM for the entire ownership period,” said Kaustav Roy, director at JD Power, Singapore. “Facing deteriorating quality early on in the ownership period not only detracts from good word-of-mouth recommendations, but can also influence a customer’s repurchase decision at the end of the ownership period. OEMs can thus gain a competitive advantage by establishing a consistent and sustained performance as a brand differentiator.”

The study finds that both components of quality—design quality and manufacturing quality—deteriorate with increasing mileage accumulation. Owners having driven more than 3,000 kilometers report 62 PP100 instances of problems with design quality, compared with 50 PP100 among those who have covered less than 3,000 kilometers. With respect to manufacturing quality, the owner group with higher mileage reported 96 PP100 problems, compared with 75 PP100 reported by owners having covered 3,000 kilometers or less.

“The harsh weather and road conditions, coupled with the fact that nearly two-thirds of owners in India generally ride with a pillion onboard, does put a lot of stress on vehicle systems and can lead to premature wear and tear of parts,” said Rajat Agarwal, two-wheeler industry expert at JD Power, Singapore. “Given that two in three owners of a two-wheeler intend to keep their current vehicle for five years or more, it would be prudent for automakers to focus on initial quality and ensure that quality is sustained over the product lifecycle.”

Following are some of the key findings of this year’s study:

• Overall two-wheeler quality influences loyalty. Owners who experience fewer problems than expected (52%) are more than two times as likely to recommend their two-wheeler model to family and friends as those who experience more problems than expected (8%).
• Initial Quality improves in both scooter and motorcycle segments. Overall initial quality averages 129 PP100 for scooters and 150 PP100 for motorcycles, an improvement of 8 PP100 and 9 PP100, respectively, from 2016. Among vehicle systems, the greatest year-over-year improvement is in the brake category.
• Explanations by the salesperson during vehicle delivery influences problem instances. Nearly three-fourths (72%) of buyers were advised by the salesperson about the vehicle dos and don’ts during vehicle delivery. These owners report significantly fewer instances of initial quality problems than those who were not advised of the same (119 PP100 vs. 205 PP100, respectively).
• First-time buyers report fewer initial quality problems. More than three-fourths (77%) of two-wheeler owners are first-time buyers, and they report fewer problems than those with previous ownership experience (123 PP100 vs. 212 PP100, respectively). The difference is largely influenced by problems in the engine and ride and handling categories. Younger buyers report facing higher initial quality problems. Young buyers—those who are 30 years old or younger (57%)—report facing higher initial quality than mature buyers who are 31 years old or older (150 PP100 vs. 135PP100, respectively). The difference is largely influenced by problems in the ride and handling and brake categories.

Model Results by Segment

Award recipient segments include scooters (executive) and motorcycles (economy, executive, upper executive and premium).

For scooters, Honda Activa I (70 PP100) ranks highest among executive models.

For motorcycles, TVS Star City Plus (110 PP100) ranks highest among economy models, and Hero Super Splendor (115 PP100) ranks highest among executive models. Suzuki Gixxer/ Gixxer SF (99 PP100) ranks highest among upper executive models, and TVS Apache RTR 160 (108 PP100) ranks highest among premium models.

The 2017 India Two-Wheeler Initial Quality Study (2WIQS) is based on evaluations from 9,570 vehicle owners who purchased a new vehicle between March 2016 and October 2016. The study includes 87 two-wheeler models from 10 makes. The study was fielded from September 2016 to December 2016 in 45 cities across India.

Media Relations Contacts

Geno Effler; JD Power; Costa Mesa, California, USA; 001‐714-621-6224; [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. Together, the five 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.

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

 

Safety, Connectivity Features Increase New-Vehicle Appeal, JD Power Finds

2016-12-19

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SINGAPORE: 21 Dec. 2016 — The proliferation of safety features such as anti-lock braking system and airbags and technology features such as hands-free connectivity are helping to boost the overall appeal of new vehicles in India, according to the JD Power 2016 India Automotive Performance, Execution and Layout (APEAL) Study,^SM released today.

Overall APEAL averages 862 points (on a 1,000-point scale) in 2016, up from 846 in 2015. The increase in APEAL is attributed in part to a greater share of new vehicles being equipped with safety and technology features. Among safety features, half of new vehicles in 2016 are equipped with driver and passenger airbags, up from 38% in 2015. The average APEAL score for vehicles equipped with airbags is 11 points higher than it is for vehicles without them. Vehicles with anti-lock braking systems—now available in half of all new vehicles and more than a third of vehicles in the small car segments—have an APEAL score of 871 points, compared to 854 points for vehicles without them.

Fitting vehicles with technology features like hands-free connectivity, which has increased by 8 percentage points from 2015, also boosts APEAL scores. Vehicles with hands-free connectivity average an APEAL score that is 5 points higher than vehicles without the technology.

“One of the areas automakers are focusing on is enhancing safety and technology features in their vehicles as a way to differentiate themselves from others,” said Mohit Arora, executive director at JD Power. “In the past, these features were available only in vehicles of larger body types or in vehicles at the upper end of the price spectrum. Today, these features are commonly available in most vehicles, including those in the small car segments, providing new-car buyers, especially first-time buyers, with more value for their money.”  

More key findings of the study include:

• APEAL Affects Advocacy and Loyalty: Among owners of vehicles with average or above APEAL scores (862 or higher), 83% say they “definitely would” recommend their purchased model and 66% “definitely would” repurchase the same make. In contrast, among owners of vehicles with below-average APEAL scores (861 or lower), 64% say they “definitely would” recommend their vehicle model and 47% “definitely would” repurchase the same brand. 
• Vehicle Interiors Become Quieter: There has been improvement in overall vehicle interior noise. The proportion of customers who are delighted (providing a rating of 10 on a 10-point scale) with the overall interior quietness of their new vehicle increases to 23% in 2016 from 19% in 2013. The average APEAL score among these delighted customers is more than 300 points higher than among those who are disappointed (providing a rating of 1 through 4) with overall interior quietness.

“In addition to boosting vehicle appeal by providing more features, manufacturers also need to find ways to continue to improve the driving experience by reducing unwanted noise, vibration and harshness issues,” said Shantanu Nandi Majumdar, director at JD Power. “Reducing noise is likely to improve brand image and enable manufacturers to distinguish themselves from competition.”

Study Rankings

Hyundai receives five of the eight segment-level APEAL awards: Eon (entry compact car); i10 (compact car); Grand i10 (upper compact car); Elite i20/ Active (premium compact car, in a tie with the Honda Jazz); and Creta (SUV, in a tie with the Mahindra Scorpio). 

Honda receives three awards: Jazz (premium compact car, in a tie with the Hyundai Elite i20/ Active); Amaze (entry midsize car); and City (midsize car, in a tie with the Maruti Suzuki Ciaz). 

Maruti Suzuki receives an award in the midsize segment for the Ciaz, which ties with the Honda City. Toyota receives an award in the MUV/ MPV for the Innova, while Mahindra receives an award in the SUV segment for the Scorpio, which ties with the Hyundai Creta.

Hyundai’s Eon, i10 and Creta; Honda’s Amaze and City; and Toyota’s Innova also rank highest in their respective segments in the JD Power 2016 India Initial Quality StudySM (IQS). 

About the Study

The India APEAL Study, now in its 18th year, serves as the industry benchmark for new-vehicle appeal. The APEAL Study, which examines how gratifying a new vehicle is to own and drive, is used extensively by manufacturers worldwide to help them design and develop more appealing vehicles and by consumers to help them in their purchase decisions. The study measures satisfaction across 10 performance categories: vehicle exterior; vehicle interior; storage and space; audio/ entertainment/ navigation; seats; heating, ventilation and air conditioning (HVAC); driving dynamics; engine/ transmission; visibility and driving safety; and fuel economy. 

The 2016 India APEAL Study is based on responses from 8,323 owners who purchased a new vehicle from November 2015 through July 2016. The study was fielded from May through September 2016 in 30 cities across India.

Media Relations Contacts

Geno Effler; JD Power; Troy, Michigan 48083 USA; 001‐248‐680‐6218; [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. Together, the five 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.

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

 

Overall Level of Service Declines in India’s Luxury Car Segment

2016-12-14

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SINGAPORE: 15 Dec. 2016— Satisfaction with the overall vehicle service process among luxury car owners in India has dropped significantly year over year, according to the JD Power 2016 India Customer Service Index (CSI) Study^SM luxury segment, released today.

Overall satisfaction with the after-sales process is 35 points lower in 2016 than in last year’s study (801 vs. 836, respectively, on a 1,000-point scale). Vehicle service processes that show the greatest year-over-year decline are performing a pre-service inspection of the vehicle (86% vs. 90%, respectively); providing an estimate before service (74% vs. 88%); and reviewing the completed work (89% vs. 91%).

“Given the significantly high cost of service for luxury vehicles in India, customers want to be kept updated about the scope of the work and an estimate of the charges,” said Mohit Arora, executive director, JDPower Singapore. “Failure to follow through on these actions results in an adverse perception of the workshop’s performance.”

Following are additional findings of the study:

• Customers Prefer Familiarity and Proximity: More than 2 in 5 (42%) luxury vehicle owners prefer to have their car serviced at the dealership where they bought it or at a dealership within a convenient distance.
• Customers More Sensitive about Service Processes: Evenwith the highest implementation rates of all 22 process standards, overall satisfaction drops by 37 points from 2015, indicating heightened customer expectations in the marketplace.
• Dealers Can Improve Customer Engagement after the Service Visit: More than 2 in 5 (43%) customers received a follow-up call from the dealership, a drop of 24% from 2015. Overall satisfaction among these customers is 831 points, which is 49 points higher than among those who did not receive a follow-up call.

Study Rankings

BMW ranks highest in luxury vehicle customer service with a score of 815 points. BMW performs particularly well in the vehicle pick-up factor. Mercedes-Benz ranks second with a score of 805 points.

The India Customer Service Index Study, now in its fourth year, measures satisfaction among luxury vehicle owners who visited an authorized dealership service center for maintenance or repair work within the first 12-24 months of vehicle ownership. The study measures overall satisfaction in five factors (listed in order of importance): service quality (43%); vehicle pick-up (17%); service advisor (14%); service facility (14%); and ervice initiation (11%).

The 2016 study is based on responses from 225 vehicle owners in the luxury segment who received delivery of their new vehicle between May 2014 and August 2015, and took their vehicle for service to an authorized dealer or service center between October 2015 and August 2016. The study was fielded between May and August 2016.

Media Relations Contact

John Tews; JD Power; Troy, Michigan, 48083, USA; 001-248-680-6218; [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 asean-oceania.jdpower.com.

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

 

Personal Attention during Luxury-Vehicle Purchase Process Drives Satisfaction in India

2016-12-08

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SINGAPORE: 9 Dec. 2016— Luxury-vehicle owners in India expect their dealerships to engage in personalized interaction, according to the JD Power 2016 India Sales Satisfaction Index (SSI) Study^SM luxury segment, released today.

Undertaking certain activities—such as understanding a customer’s vehicle needs, providing an explanation of the features and their benefits, and providing proactive status updates regarding delivery of their new car—drive satisfaction among luxury-vehicle owners. Performing these activities improves overall satisfaction by 91 points (to 910 on a 1,000-point scale), compared with when they are not performed.

“Luxury-vehicle owners in India are from the highest socio-economic strata of the country,” said Mohit Arora, executive director at JD Power, Singapore. “Hence, they look for a significant amount of personalized attention during the purchase process. Dealerships that are able to deliver on such demands will assist in enhancing the manufacturer’s brand image as well as their own reputation in this competitive market environment.”

Following are additional key findings of the study:

• Luxury Shoppers Are Decisive: 78% of luxury-vehicle owners knew the exact model they wanted to purchase. Nearly three-fourths (72%) of these owners cite brand reputation, vehicle quality and design as the key purchase reasons.
• Dealerships Focus on Process: 85% of luxury-car owners received all the process-related sales standards, which range from the pre-sale stage—such as offering a test drive—to the post-sales stage, such as offering to set up a service visit.
• Dealerships Lag on Communications: Only 43% of customers were offered all communication standards, among whom satisfaction is 49 points higher than among those who did not receive all these standards.
• Problems during Purchase Process Hurt Satisfaction: These problems include limited vehicle stock, payment issues and salesperson-related issues. Satisfaction among owners who experienced such problems is 89 points lower, on average, than among those who did not experience any problems.

Study Rankings

BMW ranks highest in sales satisfaction in the luxury-vehicle market with a score of 915. BMW performs particularly well in the delivery process and sales initiation factors. Mercedes-Benz ranks second at 903.

About the Study

The 2016 India SSI Study luxury segment examines six factors that contribute to overall customer satisfaction with their new-vehicle purchase experience in the luxury market. In order of their effect on overall sales satisfaction, those factors are sales initiation (17%); dealer facility (17%); deal & paperwork (17%); delivery timing (17%); salesperson (16%); and delivery process (16%). Sales satisfaction performance is reported as an index score based on a 1,000-point scale, with a higher score indicating greater satisfaction with the new-vehicle sales and delivery processes. Overall satisfaction for luxury brands averages 896 points in 2016.^[1]

The study is based on responses from 233 new-vehicle owners who purchased their vehicle between September 2015 and April 2016. The study was fielded from March through October 2016.

Media Relations Contacts

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

Geno Effler: JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [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 asean-oceania.jdpower.com.

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

 

India Vehicle Quality Improves in Manufacturing but Design-Related Quality Lags, JD Power Finds

2016-11-28

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SINGAPORE: 30 Nov. 2016 — While new-vehicle quality in India has significantly improved during the past few years, automakers are finding it challenging to reduce issues pertaining to vehicle design, according to the JD Power 2016 India Initial Quality Study^SM released today.

The study, now in its 20th year, measures problems that owners experience with new vehicles during the first 2-6 months of ownership and examines more than 200 problem symptoms in eight vehicle categories (listed in order of frequency of reported problems): engine and transmission; driving experience; HVAC; vehicle exterior; features, controls and displays; vehicle interior; audio, entertainment and navigation; and seats. All problems are summarized as the number of problems per 100 vehicles (PP100), with a lower PP100 score indicating a lower incidence of problems and higher initial quality.

According to the study, the industry averages 95 PP100 in 2016, which is 25 PP100 fewer than in 2012. While problems related to manufacturing quality have declined by 21 PP100 in that time frame, design-related issues have only declined by 4 PP100.

“Strong focus over the years on manufacturing execution is yielding results,” said Mohit Arora, executive director at JD Power in Singapore. “Customers are clearly appreciating the same by citing fewer such issues during their initial vehicle ownership.”

Arora added, however, that the challenge lies in aligning vehicle design to a set of optimized customer requirements on fuel efficiency, HVAC effectiveness and ease of gearshift operations. “Given the nature of driving conditions in India, customer sensitivity toward comfort and ease of driving are likely to increase,” Arora said. “Manufacturers that are able to integrate these into their overall vehicle design would be in a better position to differentiate their products and build better advocacy for their brands.”

Key Findings

• While both petrol and diesel models have shown strong improvement in initial quality during the past five years, the rate of improvement for diesel models is much higher at 31 PP100, compared with petrol models, which have improved by 18 PP100 during this time frame.
• Repeat buyers tend to experience more initial quality issues, an overall 112 PP100 compared with first-time buyers at 83 PP100. The biggest difference emanates from design-related issues, which averages 13 PP100 more among repeat buyers than among first-time buyers.
• Vehicle usage has a bearing on initial quality issues. Initial quality among customers who drive more than 750 kilometers per month is 124 PP100, compared with 87 PP100 among those who drive less than 750 kilometers per month.
• Vehicle quality builds advocacy. Among vehicle owners who experience fewer problems than expected, 76% say they “definitely would” recommend their model to family and friends, while only 42% of those who experience more problems than expected say they “definitely would” recommend their vehicle to others.

2016 India IQS Rankings

Hyundai receives three model-level awards. The Hyundai Eon ranks highest (96 PP100) in a tie with Maruti Suzuki Alto 800 in the entry compact segment; the Hyundai i10 ranks highest in the compact segment with 64 PP100; and the Hyundai Creta, in its debut year, ranks highest in the SUV segment with 68 PP100.

Honda and Toyota each receive model-level awards. The Honda Amaze and the Honda City rank highest in the entry midsize and midsize segment with 43 PP100 and 58 PP100, respectively.

The Toyota Etios Liva/Cross and Toyota Innova rank highest in the upper compact and MUV/MPV segments with 68 PP100 and 53 PP100, respectively.

The Volkswagen Polo/Cross ranks highest in the premium compact segment with 55 PP100.

The 2016 India Initial Quality Study is based on evaluations from 8,330 vehicle owners who purchased a new vehicle between November 2015 and July 2016. The study includes 78 vehicle models from 17 makes. The study was fielded from May to September 2016 in 30 cities across India.

Media Relations Contacts

John Tews; JD Power; Troy, Michigan 48083 USA; 001-248-680-6218; [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 asean-oceania.jdpower.com.