Category: India

Increasingly, Shoppers in India Consider Purchasing Larger Vehicle Models

2015-09-28

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SINGAPORE: 30 SEPTEMBER 2015 — New-vehicle buyers in India are increasingly considering models in the utility vehicle and midsize car segments during the shopping process, according to the JD Power 2015 India Escaped Shopper Study^SM (ESS) released today.

During the past four years, there has been a significant shift in the type of vehicles shoppers consider purchasing away from small cars to larger models. In 2015, the percentage of new-vehicle shoppers who consider small cars during their shopping process has decreased to 45 percent from 65 percent in 2012. Concurrently, the percentage of shoppers who consider utility vehicles and midsize cars has increased by 12 percentage points and 7 percentage points, respectively. 

“Today, price gaps between vehicle segments have narrowed, with many automakers offering models of different body types around the same price point. This has given new-car buyers a wider range of vehicles for consideration, including larger models,” said Mohit Arora, executive director at JD Power. 

Additionally, purchase consideration of newly launched models has increased among new-vehicle shoppers to the highest level in three years. In 2015, 10 percent of all shoppers consider a newly launched model vs. 7 percent in 2013. Notably, repeat vehicle buyers are typically more open than first-time purchasers when it comes to selecting a newly launched model. 

KEY FINDINGS 

• In 2015, more new-vehicle buyers in India research the vehicle they consider than in 2014 (41% vs. 35%, respectively). 
• More shoppers who consider a newly launched model use the Internet as a source of information for vehicle research than those who consider an existing model (51% vs. 45%, respectively).
• Among shoppers who consider a new model but later reject it, price is cited as the primary reason for rejecting (30%), followed by exterior design (21%) and fuel economy (18%).
• Maruti Suzuki is the most considered nameplate among new-vehicle shoppers for an 11th consecutive year, with 40 percent of all shoppers purchasing one of its models.
• Overall customer retention is at 37 percent in 2015, down slightly from 38 percent in 2014. Toyota has improved its customer retention rate the most from 2014. 

The 2015 India Escaped Shopper Study is based on responses from 8,116 buyers and 2,983 rejecters of new cars and new utility vehicles who purchased their vehicle between September 2014 and April 2015. The study, which examines the reasons new-vehicle shoppers consider but ultimately reject certain models in favor of another, was fielded from March through July 2015. 

About JD Power in the Asia Pacific Region

JD Power has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific Region. 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 india.jdpower.com. 

About McGraw Hill Financial www.mhfi.com  

Media Relations Contacts

XingTi Liu; JD Power; 08-Shenton Way, #44-02/03/04; Singapore, 068811; Phone +65-67338980; [email protected]

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

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

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Greater Focus on Maximizing Sales Conversions Impact Customer Satisfaction with the Purchase Experience at Dealerships in India

2015-08-28

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SINGAPORE: 31 August 2015 — As shopping traffic for new vehicles has increased at showrooms in India, dealers have focused on maximizing sales conversions rather than providing a satisfying customer purchase experience, according to the JD Power Asia Pacific 2015 India Sales Satisfaction Index (SSI) Study^SM released today. 

Now in its 16th year, the study examines seven factors that contribute to new-vehicle owners’ overall satisfaction with their sales experience (listed in order of importance): delivery process, delivery timing, salesperson, sales initiation, dealer facility, paperwork and deal. Satisfaction is calculated on a 1,000-point scale.

Overall sales satisfaction in the mass market segment is 851, a 6 point decline from 2014. Nearly one in five (18%) customers is dissatisfied with several critical aspects of the purchase process, including negotiations for their new vehicle, delivery commitments and the overall delivery process.

“Intense competition and pressure to maximize sales conversions has shifted focus from a customer-centric approach to a sales-driven approach for dealers, impacting customer satisfaction,” said Mohit Arora, executive director, JD Power Asia Pacific, Singapore. “Original equipment manufacturers (OEMs) and dealerships need to provide a pressure-free environment that is conducive to sales, which can lead to a positive and lasting impression of the brand and dealerships in the minds of customers.”

Study findings show that purchase reasons and shopping behavior vary significantly across demographics. A larger proportion of younger buyers (30 years and younger) place a greater emphasis on vehicle design, performance and features as purchase criteria for their vehicle, compared with all other age groups combined (43% vs. 35%, respectively). Additionally, using the internet as a source of information for vehicle purchase is higher among younger buyers than among all other age groups combined (32% vs. 26%, respectively).

KEY FINDINGS

• Satisfaction with the delivery process and delivery timing declines the most year over year, dropping by 9 points in each factor.
• The average time for vehicle delivery has increased to 11 days after booking in 2015 from 9 days in 2014. Shoppers expect to be shown the same model variant that they intend to purchase. Currently, non-compliance on this aspect of the purchase process is 16 percent in the market in India, resulting in a 40-point decline in overall satisfaction.
• More than one-third (39%) of new-vehicle owners visited showrooms at least three times during their shopping process, up by 4 percent from 2014. Satisfaction among these owners is 25 points lower than among those who visited showrooms two or fewer times.
• Among new-vehicle owners who are highly satisfied with their purchase experience (sales satisfaction scores 922 and above), 82 percent say they “definitely will” recommend their purchase dealer to family and friends and 74 percent say they “definitely will” purchase the same vehicle make in the future. Conversely, only 41 percent of highly dissatisfied owners (scores 801 and below) say they “definitely will” recommend their purchase dealer to family and friends and 37 percent say they “definitely will” repurchase the same brand.

Study Rankings

Toyota and Mahindra rank highest, in a tie, with a score of 872 each. Toyota performs particularly well in the sales initiation factor and Mahindra performs highest in the paperwork factor.

The 2015 India Sales Satisfaction Index (SSI) Study is based on responses from more than 7,895 new-vehicle owners who purchased their vehicle between September 2014 and April 2015, and includes evaluations of more than 75 models within the mass market segment. The study was fielded from March to July 2015.

Media Relations Contacts

XingTi Liu; JD Power Asia Pacific; 08-Shenton Way, #44-02/03/04; Singapore, 068811; Phone +65-67338980; [email protected]

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

About JD Power Asia Pacific

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

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

About McGraw Hill Financial www.mhfi.com

Newer Models Propel Improvements in Long-Term Vehicle Dependability in India

2015-06-29

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SINGAPORE: 30 June 2015 — New model launches propel improvements in long-term vehicle dependability in India as owners of these models report fewer problems than owners of existing or continuing models, according to the JD Power Asia Pacific 2015 India Vehicle Dependability Study^SM (VDS) released today.

The study, now in its eighth year, measures problems experienced by original owners of 30- to 42-month-old vehicles in 169 different problem symptoms across nine vehicle categories: vehicle exterior; driving experience; features, controls and displays (FCD); audio and entertainment; seats; heating, ventilation and air conditioning (HVAC); vehicle interior; engine; and transmission. Overall dependability is based on the number of problems reported per 100 vehicles (PP100), with a lower score reflecting higher long-term vehicle quality.

Overall vehicle dependability in India improved, averaging 206 problems per 100 vehicles (PP100) in 2015, down from 218 PP100 in 2014. Owners of vehicles that were all-new to the market or substantially redesigned at the time they were purchased report 17 PP100 fewer than owners of models that had already been available in the market in previous years. The greatest difference in all-new models is in the vehicle exterior category, with 12 PP100 fewer than current models.

Overall, owners report fewer problems in the engine and vehicle exterior categories. Engine problems decrease by 8 PP100 in 2015, compared with 2014, while vehicle exterior problems decrease by 5 PP100. There is also a significant reduction in the incidence of problems related to excessive fuel consumption (EFC) for both petrol and diesel cars. EFC problems drop to 5.5 PP100 in 2015 from 8.6 PP100 in 2014, contributing to improvements in the engine category. This drop in EFC-related problems is consistent with the continued improvement in fuel economy owners have reported for both petrol and diesel cars over the last five years.

“Improvements in styling, material usage and build quality on models that were newly introduced at the time of purchase are helping enhance perceptions of durability with respect to vehicle exterior,” said Mohit Arora, executive director at JD Power Asia Pacific, Singapore. “Additionally, with improved engine technologies that provide better fuel efficiencies, car owners are reporting fewer engine-related problems.”

The incidence of HVAC problems has increased during the past five years to 24 PP100 in 2015 from 18 PP100 in 2011. The study finds a correlation between the HVAC problems reported and the number of passengers riding in a vehicle. In 2015, 67 percent of new-vehicle owners indicate that three or more people ride in their vehicle, up from 50 percent in 2011. When three or more passengers are in the vehicle, HVAC problems average 27 PP100, compared with 20 PP100 when only one or two are in the vehicle.

“As the number of people riding together increases, the number of HVAC problems reported also increases,” said Arora. “With the increase in second- and third-row occupancy, it is imperative for automakers to provide a reliable HVAC unit that optimizes the air-conditioning effectiveness for all the occupants.”

KEY FINDINGS

• ŸThe 28 percent of owners whose vehicle is under an extended warranty or service contract report fewer problems than those whose vehicle is not under an extended warranty or service contract (192 PP100 vs. 211 PP100, respectively).

• In 2015, 34 percent of owners indicate their vehicle has undergone repairs for unexpected problems, down from 37 percent in 2014. Owners who experience unexpected repairs report a significantly higher number of problems than those who do not (360 PP100 vs. 127 PP100, respectively).
• Among owners who indicate they have not experienced a problem with their vehicle, 74 percent say they “definitely would” recommend their current model to others and 52 percent say they “definitely will” repurchase their current make. In contrast, advocacy declines to 53 percent among those who experience at least one problem with their vehicle and loyalty drops to 37 percent.

2015 India VDS Rankings

Honda, Maruti Suzuki and Toyota each have two models that rank highest in their respective segments. Honda Brio ranks highest in the upper compact segment and the Honda City ranks highest in the midsize segment. Maruti Suzuki Alto ranks highest in the compact car segment, while the Toyota Etios ranks highest in the entry midsize segment. Maruti Suzuki Ertiga and Toyota Innova rank highest in a tie in the MUV/ MPV segment. Volkswagen Polo ranks highest in the premium compact segment and the Mahindra Scorpio ranks highest in the SUV segment.

The 2015 India Vehicle Dependability Study (VDS) is based on evaluations from 8,507 original owners who purchased a new vehicle between July 2011 and September 2012. The study includes 65 models covering 16 nameplates and was fielded from January through April 2015 in 30 cities across India. The VDS is one of two JD Power Asia Pacific automotive quality studies for the India market. The 2015 India Initial Quality Study (IQS), which measures problems of new vehicles at 2 to 6 months of ownership, will be published in November.

Media Relations Contacts

XingTi Liu; JD Power Asia Pacific; 08-Shenton Way, #44-02/03/04; Singapore, 068811; Phone +65-67338980; [email protected]

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

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

About McGraw Hill Financial www.mhfi.com

Dealer Optimism Increases in India as Passenger Car Sales Improve

2015-05-27

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SINGAPORE: 28 May 2015 — Optimism among car dealers in India is growing as a majority expect their financial performance to improve this year, according to the JD Power Asia Pacific 2015 India Dealer Satisfaction with Automotive Manufacturers Index (DSWAMI) Study^SM released today.

The study finds that 56 percent of dealers in India estimate that their financial performance in fiscal year 2015 will improve, compared with fiscal year 2014. In the 2014 study, only 46 percent of dealers indicated that their financial performance will be better than last year.

“The last two or three years have been challenging for the passenger-car industry and subsequently for dealers across India as they grappled with low demand,” said Mohit Arora, executive director of JD Power Asia Pacific. “However, an uptick in sales for the first time in two years in fiscal year 2015 seems to have provided a much-needed respite for dealers who appear to perceive that the worst could be over.”

Now in its fifth year, the study measures dealer satisfaction with vehicle manufacturers or importers in India and identifies dealer attitudes regarding the automotive retail business. Overall dealer satisfaction is determined by examining nine factors: marketing and sales activities; product; vehicle ordering and delivery; sales team; parts; warranty claims; after-sales team; training; and support from the manufacturer.

Sales team (16%) is the highest-weighted factor in the 2015 study, increasing in importance by 6 percentage points year over year and contributing most to overall dealer satisfaction. Similarly, the marketing and sales activities factor has increased in importance year over year (15% vs. 9%, respectively).

“Prevailing market conditions have necessitated a closer working relationship between the dealers and manufacturers as they strive to achieve target sales volumes,” said Arora. “Support from manufacturers with marketing and sales activities, and cohesive working relationships between manufacturers’ sales teams and dealerships have helped drive dealer satisfaction.”

KEY FINDINGS

• Overall dealer satisfaction with automotive manufacturers averages 826 points on a 1,000-point scale in 2015, down from 827 in 2014. Satisfaction improves across five of the nine study factors, most notably in parts, after-sales team and warranty claims.
• In 2015, parts satisfaction improves more than any other factor year over year, with 83 percent of dealers indicating they received parts within 15 days of ordering, which is the highest percentage since 2012.
• Product satisfaction, including the variety of models to meet market needs and frequency of product updates, declines the most (-14 points). More than one-fourth (27%) of dealers indicate their manufacturer does not adequately support them in introducing new models/ variants. Additionally, 24 percent of the dealers indicate their automaker does not have the range of vehicles to compete effectively in the market, an increase of 5 percentage points from 2014.
• The top four ranked makes—Toyota, Maruti Suzuki, Honda and Hyundai— also have the highest proportion of dealers who are expecting to make a profit this year.

Study Rankings

Toyota ranks highest in dealer satisfaction, with a score of 919, outperforming other brands in eight of nine study factors. Maruti Suzuki ranks second with a score of 885, followed by Honda at 884. Nissan (756) improves overall by a substantial 63 points, while Hyundai (883) improves by 25 points in 2015.

The 2015 India DSWAMI Study is based on responses from 734 dealer principals or dealership general managers located in more than 250 cities throughout India. The study was conducted in association with the Federation of Automobile Dealers Associations (FADA) and was fielded between January and March 2015.

Media Relations Contacts

XingTi Liu; JD Power Asia Pacific; 08-Shenton Way, #44-02/03/04; Singapore, 068811; Phone +65-67338980; [email protected]

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

About JD Power and Advertising/Promotional Ruleshttp://www.jdpower.com/about/index.htm

About McGraw Hill Financial www.mhfi.com 

Sharp Reduction in Number of Customer-Reported Problems with Original Equipment Tires Over Past Five Years in India

2015-03-25

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Singapore: 31 March 2015 — There has been a significant reduction in customer-reported problems with original equipment (OE) fitted tires during the past five years in India, indicating improvement in the quality of OE fitted tires, according to the JD Power Asia Pacific 2015 India Original Equipment Tire Customer Satisfaction Index (TCSI) Study^SM released today.

The study, now in its 15th 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 (870 on a 1,000-point scale); ride (869); durability (866); and traction/ handling (866).

The overall incidence of problems cited by customers has dropped significantly to 9 percent in 2015 from 18 percent in 2010. That decline is primarily due to a notable reduction in the percentage of reported problems with frequent punctures—the most commonly cited problem—to 57 percent from 77 percent in 2010.

“With the continuous quality and performance improvement of OE fitted tires over the past five years, customers are increasingly satisfied,” said Mohit Arora, executive director, JD Power Asia Pacific. “This bodes well for the tire industry considering that demand in the replacement tire market is driven by customer perceptions of their original equipment tires. Customers who are satisfied with their OE tires are more likely to repurchase the same brand again.”

KEY FINDINGS

• Overall OE tire customer satisfaction averages 868, which is a 24-point increase from 2014. Satisfaction improves across all four factors year over year, most notably in the durability factor (+26 points).
• Tire brand remains the most influential reason for customers when selecting new tires (51%). Customers are increasingly placing importance on tire design and styling. Overall, 27 percent of customers cite tire design and styling as a reason for selecting a brand, which increases to 30 percent of mid-size car owners.  
• Across vehicle segments, 24 percent of small car owners and 22 percent of utility car owners say they are “delighted” with their tire’s performance in terms of fuel economy, compared with just 18 percent of mid-size car owners who say the same.
• Owners who are highly satisfied (overall satisfaction scores of 948-1,000) with their original tires are more likely to recommend their tire brand, with 78 percent of these customers saying they “definitely would” recommend their tire brand. Among customers who are less satisfied (scores of 808 and below), only 41 percent say they “definitely would” recommend their tire brand. 
• Although quality continues to improve, 30 percent of customers in India indicate they ignore servicing their tires.

Study Rankings

JK Tyre ranks highest in overall customer satisfaction with a score of 881 points. JK Tyre performs particularly well in the appearance (882) and ride (886) factors. MRF ranks second with a score of 876.

The 2015 India Original Equipment Tire Customer Satisfaction Index (TCSI) Study is based on 4,079 responses from new-vehicle owners who purchased their vehicle between May 2012 and August 2013. The study was fielded between May and August 2014.

Media Relations Contacts

XingTi Liu; JD Power Asia Pacific; 08-Shenton Way, #44-02/03/04; Singapore, 068811; Phone +65-67338980; [email protected]

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

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

About McGraw Hill Financial www.mhfi.com 

New Studies Show Tractor Brands in India Face Challenges To Meet Farmers’ Quality and Service Expectations

2015-02-17

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SINGAPORE: 18 February 2015 — JD Power Asia Pacific released two inaugural studies today, the JD Power Asia Pacific 2015 India Tractor Product Performance Index (PPI) Study^SM and the JD Power Asia Pacific 2015 India Tractor Customer Service Index (CSI) Study,^SM each providing insights into the drivers of satisfaction among owners and benchmarks on brand performance in India, the largest tractor market in the world.

The India Tractor Product Performance Index Study 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): engine and transmission; hydraulic and couplings; tyres; tractor structure; overall styling and design; driving comfort; and driveability. The quality and reliability index covers owners’ experiences and ratings of actual and perceived quality issues. Product performance is reported as an index score based on a 1,000-point scale, with a higher score indicating a higher level of satisfaction.

The India Tractor Customer Service Index Study measures customer satisfaction with the after-sales process at authorised service centres among tractor owners. Overall customer service satisfaction is based on a combined score of the service satisfaction index and parts operation index. The service satisfaction index examines satisfaction in four key measures (listed in order of importance): service quality; service initiation; service engineer; and service handover. The parts operation index examines satisfaction across five attributes, including availability of parts, speed of parts delivery and parts value for money, amongst others.

“Covering the largest tractor market in the world, the Indian tractor studies provide in-depth insights into the drivers of satisfaction amongst farmers in this important market,” said Mohit Arora, executive director, JD Power Asia Pacific. “The studies also provide essential benchmark data on the performance of the major tractor brands in India through direct and independent customer feedback.”

India Tractor Product Performance Index Study

The study finds that the engine and transmission, hydraulic and couplings, and tyres categories have the greatest impact on owner satisfaction with their tractor’s performance; however, satisfaction in the machine performance index is lowest in these categories.

The study also measures the problems owners experience with their new 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 average in this year’s study is 203 PP100. Nearly three-fourths (74%) of all problems reported are in four categories: engine and transmission; driving and operation; electrical; and hydraulics and couplings.

The most frequently cited problem areas include excessive or uneven tyre wear; hydraulic system hard to operate; engine overheating; and electrical wiring problems. Among those problems, tractor owners indicate that excessive or uneven tyre wear is the most bothersome problem. Excessive or uneven tyre wear is reported most frequently by owners who use such implements as a rotavator, cultivator or plough.

“While using implements clearly improves productivity, incorrectly matched implements can aggravate the number of problems related to tyres,” said Arora. “Tractor manufacturers should educate farmers on the correct use of implements that are properly matched to their tractors to minimise their grievances related to this problem. Simply trying to improve on product quality may not always yield the greatest improvement in owner satisfaction with the quality of their tractor if matching implements are not used with their tractors.”

India Tractor Customer Service Index Study

The study finds that only 8 percent of owners are contacted by their authorised dealer when their tractor requires routine maintenance. Among owners who take their tractor in for maintenance, the average wait time for service is 2.5 hours, with 19 percent of owners waiting more than one day for their tractor to be serviced.  

“Dealers should be more proactive in reaching out to farmers to ensure their tractors are correctly maintained,” said Dr. Gordon Shields, director, JD Power Asia Pacific. “Encouraging customers to conduct regular maintenance on their tractors not only makes financial sense for the dealer, but it also reduces the number of tractor breakdowns and helps improve the overall uptime during busy periods.”

Fairness of pricing is the lowest rated measure, with 13 percent of owners indicating their charges were higher than expected. Additionally, only 21 percent of service customers indicate having received an explanation of the work performed on their tractor both before and after the service/repair was completed, underscoring the need for improved transparency regarding the cost and work performed by service engineers.

“With 70 percent of customers paying part or all of the customer service and repair work on their tractors, it is essential that service engineers spend time explaining the work being performed,” said Dr. Shields. “Moreover, dealers should also consider providing more payment options for farmers in order to help them spread out some of their payments over time, which may help them maintain their tractor on a more regular basis.”

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.

Mahindra Swaraj ranks highest in the below 31 HP segment with a score of 833 and performs particularly well across all seven machine performance categories.

Mahindra ranks highest in the above 50 HP segment with a score of 856 and performs particularly well across all seven machine performance categories.

Eicher (826) ranks highest in the 31-40 HP segment and performs particularly well in six of the seven factors, while John Deere (832) ranks highest in the 41-50 HP segment and performs particularly well in five of the seven factors.

In the India Tractor Customer Service Index Study, New Holland ranks highest with a score of 794.  New Holland performs particularly well in all four measures. Massey Ferguson ranks second with a score of 784, while John Deere and Sonalika rank third in a tie with a score of 778 each.

The studies are based on responses from 4,789 owners in India who purchased a new tractor between July 2012 and November 2013. The studies were fielded between July and November 2014 in 14 states across India.

In addition to the product, service and parts performance metrics, the studies provide detailed information on a series of key industry insights, including amongst others, brand awareness, tractor transaction prices, ownership costs, tractor rental revenues (agriculture and non-agriculture usage), farm sizes, agriculture income, crops and livestock managed, as well as, the applications and implements used and owned.

About JD Power Asia Pacific: www.jdpower.com

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About McGraw Hill Financial www.mhfi.com 

Media Relations Contacts

XingTi Liu; JD Power Asia Pacific; Singapore; Phone +65-67338980; [email protected]

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

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

Influencers of Product Performance Satisfaction Differ Sharply across Two-Wheeler Segments

2015-01-28

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Singapore: 30 January 2015 — There are significant differences in what drives product performance satisfaction and demographic appeal across two-wheeler segments, according to the inaugural JD Power Asia Pacific 2015 India Two-Wheeler Automotive Performance, Execution and Layout (2WAPEAL) Study^SM released today.

The India Two-Wheeler APEAL Study, which serves as the industry benchmark for new two-wheeler appeal, measures how gratifying a new two-wheeler is to own and ride based on owner evaluations during the first two to six months of ownership. The study examines 33 attributes across six performance categories: seats; looks and styling; control switches/ locks; engine and transmission performance; fuel economy; and ride and handling. Overall APEAL performance is reported as an index score based on a 1,000-point scale, with a higher score indicating higher satisfaction.

The two-wheeler models in this study are classified into scooters and motorcycles. Scooters include two model segments: economy and executive. Motorcycles include five model segments: economy, executive, upper executive, premium and premium plus.

“There are different drivers of performance satisfaction in each product segment, and each product segment appeals to a specific demographic,” said Mohit Arora, executive director, JD Power Asia Pacific. “The Two-Wheeler APEAL Study provides the industry with key information about customer expectations so manufacturers can align their designs with those expectations and improve the performance metrics of their models.”

For the scooter model segments, the categories with the most impact on product performance satisfaction are seats (21%) and engine and transmission performance (20%). Comfort is the key reason for purchasing a scooter.

For motorcycles in the economy model segment, ride handling (21%) and fuel economy (19%) are the key drivers of satisfaction, and fuel economy is the top reason for purchase. In the premium motorcycle segment, the engine and transmission performance (24%) and looks and styling (18%) categories most influence product performance satisfaction. Looks and styling is the key reason to purchase in the motorcycle premium segment.

“Demographics play an important role in owner satisfaction and meeting the various expectations of different demographic groups is critical to improving product performance and the ownership experience,” said Arora. “The median age of motorcycle owners in the economy segment is 29, while the median age is 24 years in the premium segment. Furthermore, 31 percent of premium motorcycle owners are students, while only 10 percent of economy motorcycle owners are students.”

2015 India Two-Wheeler APEAL Study Rankings

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

Yamaha Ray/ Ray Z (859) ranks highest in the executive model segment for scooters and performs particularly well in the seats and ride and handling categories.

TVS Sport (861) ranks highest in the economy model segment for motorcycles, performing well in the control switches/ locks and ride and handling categories. In the executive model segment, Hero Super Splendor and Honda CB Shine rank highest in a tie (848 each), with both models performing particularly well in the ride and handling category.

Honda CB Unicorn and Yamaha FZ rank highest in a tie (857 each) in the upper executive model segment for motorcycles, with both models performing particularly well in the engine and transmission performance category. TVS Apache RTR 180 (877) ranks highest in the premium segment, performing well in the engine and transmission performance and ride and handling categories.

KEY FINDINGS

• The overall two-wheeler APEAL score averages 848. APEAL scores average 844 for scooters and 849 for motorcycles.
• There is a strong correlation between APEAL scores and brand loyalty and advocacy. Among highly satisfied owners (overall satisfaction of 926 points or higher), 75 percent say they “definitely would” recommend their two-wheeler to a friend or relative.
• majority (80%) of two-wheeler owners are first-time buyers. Product performance satisfaction among first time buyers is 11 points higher than among repeat buyers (850 vs. 839) with the biggest gap in the fuel economy category. Nearly one-fourth (21%) of first-time buyers indicate that average fuel consumption on their two-wheeler was “less than expected”, while 29 percent of repeat buyers indicate the same.
• The overall initial quality[1] of a two-wheeler has a strong bearing on the overall APEAL score. Satisfaction among two-wheeler owners who are “delighted” (providing a rating of 10 on a 10-point scale) with initial quality is higher than among those who are “disappointed” (ratings of 1 to 5) (922 vs. 714, respectively).
• Proactive communication with owners by dealers positively impacts overall APEAL satisfaction. Overall satisfaction among owners who receive information from their dealer about their two-wheeler during delivery averages 859, compared with 819 among those who do not receive such information.

The 2015 India Two-Wheeler Automotive Performance, Execution and Layout (2WAPEAL) Study is based on evaluations from 10,283 vehicle owners who purchased a new vehicle between March 2014 and October 2014. The study includes 81 two-wheeler models from nine makes. The study was fielded from September 2014 to December 2014 in 45 cities across India.

Media Relations Contacts

XingTi Liu; JD Power Asia Pacific; 08-Shenton Way, #44-02/03/04; Singapore, 068811; Phone +65-67338980; [email protected]

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

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

About McGraw Hill Financial www.mhfi.com 

Two-Wheeler Owners in India Report High Incidence of Initial Quality Problems with Engine, Fit and Finish, Electricals and Brakes

2015-01-21

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Singapore: 23 January 2015 — Nearly three-fourths (70%) of initial quality problems reported by two-wheeler owners in India are experienced in the engine, fit and finish, lights/electricals and brakes categories, according to the inaugural JD Power 2015 India Two-Wheeler Initial Quality Study (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 two-wheeler problem categories (listed in order of frequency of reported problems): engine; brakes; lights/electricals; fit and finish; ride and handling; transmission; and gauges and controls. 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.

“Many reported problems impact vehicle usage and varied driving conditions. Therefore, OEMs need to focus on these issues to improve performance quality and enhance vehicle safety and visibility,” said Mohit Arora, executive director, JD Power Asia Pacific. “The Two-Wheeler Initial Quality Study provides the industry with key information about customer expectations and establishes a benchmark to measure performance against the competition.”

The two-wheeler models surveyed in this study were classified into Scooters and Motorcycles. Scooters include two model segments: Economy and Executive, while Motorcycles include five model segments: Economy, Executive, Upper Executive, Premium and Premium Plus.

Overall two-wheeler initial quality in India averages 166 PP100. Engine (44 PP100), fit and finish (25 PP100), lights/electricals (25 PP100) and brakes (24 PP100) are the top reported problem categories. The most frequently cited problem symptoms include excessive fuel consumption, engine is hard to start, lights not bright enough – headlight, brakes are ineffective/ don’t have enough stopping power, and brakes are too sensitive.

The study finds that 80 percent of two-wheeler owners use their vehicle for daily commuting, averaging about 40 kilometers per day. Given this high usage, nearly one-third (27%) of two-wheeler owners have reported mileage/ fuel economy as the top main reason to purchase a new two-wheeler.

KEY FINDINGS

• For Scooters, overall initial quality averages 150 PP100. Engine (44 PP100) and brakes (28 PP100) are the top two reported problem categories. The top three reported problem symptoms include engine hard to start—electric start (7.7 PP100); excessive fuel consumption (7.6 PP100); and engine hard to start—first start of the day (6.5 PP100).
• For Motorcycles, overall initial quality is 173 PP100. Engine (44 PP100), electrical and light (27 PP100), and fit and finish (26 PP100) contribute to 50 percent of initial quality problems reported by motorcycle owners. The top reported problem symptoms include gears are noisy (7.1 PP100); lights not bright enough—headlight (6.6 PP100); and excessive fuel consumption (6.0 PP100).
• Receiving an explanation of the operation and benefits of vehicle features improves initial quality perceptions among two-wheeler owners. The number of reported problems among new two-wheeler owners who receive an explanation of their vehicle’s operation features and their benefits is 142 PP100, compared with 242 PP100 among those who do not receive such an explanation.
• Two-wheeler owners who experience fewer problems than expected (68%) are twice as likely to recommend their model to family and friends as owners who experience more problems than expected (31%).

2015 India Two-Wheeler Initial Quality Study Rankings

Award recipient segments include Scooters: Executive and Motorcycles: Economy, Executive, Upper Executive and Premium.

For Scooters, TVS Wego (84 PP100) ranks highest among executive models.

For Motorcycles, Hero Splendor iSmart ranks highest among economy models with 101 PP100, and Hero Super Splendor ranks highest among executive models with 137 PP100. Yamaha Fazer ranks highest among upper executive models (109 PP100) and Bajaj Avenger ranks highest among premium models (88 PP100).

The 2015 India Two-Wheeler Initial Quality Study (2WIQS) is based on evaluations from 10,285 vehicle owners who purchased a new vehicle between March 2014 and October 2014. The study includes 81 two-wheeler models from nine makes. The study was fielded from September 2014 to December 2014 in 45 cities across India.

Media Relations Contacts

XingTi Liu; JD Power Asia Pacific; 08-Shenton Way, #44-02/03/04; Singapore, 068811; Phone +65-67338980; [email protected]

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

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

About McGraw Hill Financial www.mhfi.com 

New-Vehicle Owners in India Want Modern Safety Features and Enhanced Driving Convenience

2014-12-17

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SINGAPORE: 19 December 2014 — New-vehicle owners in India want features and technologies that aid in driving convenience and visibility and safety, according to the JD Power Asia Pacific 2014 India Automotive Performance, Execution and Layout (APEAL) Study^SM released today.

The India APEAL Study, now in its 16th 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. Overall APEAL performance is reported as an index score based on a 1,000-point scale, with a higher score indicating higher satisfaction.

Visibility and driving safety is the most influential performance category on new-vehicle customer satisfaction in the small car market, contributing 16 percent to the overall APEAL score, and is the third-most impactful category in the midsize segment, where it contributes 13 percent to overall satisfaction.

The table below shows the percentage of small-car owners that “want” the listed safety feature on their next new vehicle and the percentage of small-car owners who already “have” the feature on their current vehicle.

“The rapid and substantial increase in demand for safety features by vehicle buyers in India over the last few years underscores the need for automakers to develop innovative and cost-effective solutions to address customer expectations,” said Mohit Arora, executive director at JD Power Asia Pacific, Singapore.  “While India shows interest in some of these basic safety features, globally, there is a growing interest in a variety of more advanced vehicle safety features. In developed markets, such as the U.S., we are seeing a rising demand for emerging safety technologies such as low speed collision avoidance systems and fully autonomous parking systems.”

In addition to safety features, owners also value driving convenience. For example, while automatic transmissions are currently found in only 5 percent of the new vehicles sold in India, 82 percent of owners want the option in their next vehicle. APEAL scores among mass market vehicles equipped with an automatic transmission average 869, compared with 854 among mass market vehicles with manual transmissions.

“According to the study data, new-vehicle owners spend nearly 2 hours commuting each day, on average, which is almost a 15 percent increase from 2011. With the addition of more than 2.5 million passenger vehicles to the roads in India in 2013, average commute time is expected to further increase, supporting customers’ demand for technologies and features that make the overall driving experience safer and less strenuous,” said Arora.

KEY FINDINGS

• The overall vehicle APEAL score averages 854 in 2014, up from 845 in 2013. 
• APEAL scores for newly launched models averages 855, compared with 854 for carry-over models in 2014. In 2013, APEAL scores for all-new models were 9 points higher than for existing models (852 vs. 843, respectively).
• In the fuel economy performance category, satisfaction for carry-over models averages 846, compared to 838 for all-new models. The lower scores for all-new models is partially attributed to higher expectations on fuel efficiency among new-vehicle owners, as the average price for petrol has increased nearly 56 percent and diesel nearly 72 percent in the past five years.
• Automakers/Dealers are also overpromising on fuel-efficiency, as actual fuel economy is 23 percent lower than the average fuel economy owners were promised during the sales process.

Model Results by Segment

Both Honda and Hyundai receive two segment awards each: Honda for the Brio (upper compact car) and City (midsize car); and Hyundai for the Eon (entry compact car) and i10 (compact car).

Other models receiving segment awards are the Maruti Suzuki Swift DZire (entry midsize car); Nissan Terrano (SUV); Toyota Innova (MUV/ MPV); and Volkswagen Polo (premium compact car).

The Brio, i10 and Innova also rank highest in their respective segments in the JD Power Asia Pacific 2014 India Initial Quality Study^SM (IQS).

The 2014 India APEAL Study is based on responses from 8,422 owners who purchased a new vehicle between November 2013 and July 2014. The study was fielded between May and September 2014 in 30 cities across India.

About JD Power Asia Pacific

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

About McGraw Hill Financial www.mhfi.com

Media Relations Contacts

XingTi Liu; JD Power Asia Pacific; Singapore; Phone +65-67338980; [email protected]

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

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

Diesel Vehicles in India Show Significant Improvements In Initial Quality over the Past Five Years

2014-11-24

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Singapore: 27 November 2014 — While diesel vehicle sales in India have increased over the past five years quality has also improved as the number of problems new-vehicle owners are reporting with their diesel vehicles have decreased significantly, according to the JD Power 2014 India Initial Quality Study (IQS) Study^SM released today. 

The study, now in its 18th year, measures problems owners experience with their new vehicle during the first two to six months of ownership and examines more than 200 problem symptoms covering eight vehicle categories (listed in order of frequency of reported problems): engine and transmission; vehicle exterior; driving experience; HVAC; features, controls and displays; vehicle interior; seats; and audio, entertainment and navigation. All problems are summarized as the number of problems per 100 vehicles (PP100). Lower PP100 scores indicate a lower rate of problem incidence and higher initial quality.

Diesel vehicle sales in India have increased by 16 percent in 2014, compared with 2010, while initial quality  has improved as the number of problems with diesel vehicles have decreased to 96 PP100 in 2014 from 148 PP100 in 2010.

The study finds that the median kilometers driven by diesel vehicle owners in India have decreased in 2014 by 22 percent since 2010. This reduction in usage has contributed to a 24 PP100 decrease in usage-related problem symptoms such as doors are hard to open or door handle is broken/not working (24 PP100 in 2014 vs. 48 PP100 in 2010).

“Overall, the industry has made significant strides on improving the quality of diesel vehicles, especially on core vehicle systems,” said Mohit Arora, executive director, JD Power Asia Pacific, Singapore. “However, with the development of public transportation in India, coupled with an increase in carpooling, owners are driving fewer kilometers, helping to reduce the number of overall problems with diesel vehicles.”

Overall initial quality in India averages 100 PP100 in 2014, down from 115 PP100 in 2013. Owners are reporting fewer problems across all eight vehicle categories, with the greatest reduction of 5 PP100 in engine and transmission.

KEY FINDINGS

• The entry compact segment improves by 48 PP100 in 2014, compared with 2013, while the MUV/ MPV segment improves by 25 PP100 and the SUV segment improves 20 PP100.
• The number of reported problems among new-vehicle owners who receive an explanation of their vehicle’s operation features at the time of purchase is 94 PP100, compared with 183 PP100 among those who do not receive an explanation.
• Among owners who say they have experienced fewer problems than expected, 79 percent indicate they intend to retain their current vehicles for five years or longer. In contrast, only 58 percent of owners who say they have experienced more problems than expected intend to retain their vehicles for the same period.
• Vehicle owners who experience fewer problems than expected are nearly twice as likely to recommend their model to family and friends as owners who experience more problems than expected.
• New-vehicle owners tolerate a 2 to 3 kilometers per liter (KMPL) variance from what their dealer communicated they should expect from their vehicle. Vehicle owners might allow 2 to 3 KMPL less than what their dealer communicated but when the variation exceeds that range they tend to indicate a fuel consumption problem.

2014 India Initial Quality Study Rankings

Maruti Suzuki and Hyundai have two models each that rank highest in their respective segments. The Maruti Suzuki Alto 800 ranks highest in the entry compact segment with 97 PP100, and the Maruti Suzuki Swift ranks highest in the premium compact segment with 78 PP100. The Hyundai i10 ranks highest in compact segment with 84 PP100, and the Hyundai Xcent ranks highest in entry midsize segment with 86 PP100.

Honda Brio ranks highest in the upper compact segment (40 PP100); the Ford Ecosport ranks highest in SUV segment (92 PP100); the Škoda Rapid ranks highest in the midsize segment (51 PP100); and the Toyota Innova ranks highest in the MUV/ MPV segment (64 PP100).

The 2014 India Initial Quality Study (IQS) is based on evaluations from 8,429 vehicle owners who purchased a new vehicle between November 2013 and July 2014. The study includes 73 vehicle models from 17 makes. The study was fielded from May 2014 to September 2014 in 30 cities across India.

Media Relations Contacts

XingTi Liu; JD Power Asia Pacific; 08-Shenton Way, #44-02/03/04; Singapore, 068811; Phone +65-67338980; [email protected]

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

About JD Power and Advertising/Promotional Rules www.jdpower.com/corporate

About McGraw Hill Financial www.mhfi.com