Category: India

Operational Efficiency and Adherence to Core Processes Drive Increase in Service Satisfaction in India

2014-10-30

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Singapore: 30 October 2014 — Automotive dealers in India are sustaining their improvement on implementation of core after-sales processes, which is resulting in higher owner satisfaction with the vehicle service experience, according to the JD Power 2014 India Customer Service Index (CSI) Study^SM —Mass Market released today. 

The study, now in its 18th year, measures satisfaction among vehicle owners who visit an authorized dealership service center for maintenance or repair work between the first 12 to 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 service initiation (11%). Overall customer satisfaction is measured on a 1,000-point scale, with a higher score indicating higher satisfaction.

Overall service satisfaction in the mass market segment improves by 22 points to 856 in 2014 from 834 in 2013. The increase is attributed to strong improvements across all factors, with service initiation, service quality and vehicle pick-up improving by 22 points each.

More vehicle owners are scheduling an appointment, rather than dropping in, and dealerships are getting vehicles in when they arrive for service, thereby reducing owner wait times. The study finds that 74 percent of customers are scheduling an appointment in 2014, up from 70 percent in 2013, which is contributing to faster vehicle intake, as 75 percent of owners indicate their vehicle was taken in for service within 15 minutes of their arrival at the service center in 2014, up from 68 percent in 2013.    

Additionally, dealerships are proactively promoting their express maintenance/ quick service options, as 27 percent of customers are offered this option for services such as an oil change in 2014, up from 22 percent in 2013.

“The India automotive industry has been facing significant challenges over the past two years due to an increase in new-vehicle sales,” said Mohit Arora, executive director at JD Power Asia Pacific, Singapore. “Dealerships across most brands have risen to the challenge by placing stringent focus on a combination of implementing core processes and offering convenience, such as quick service, to ensure a superior customer experience with after-sales service.”

The study also finds that overall quality of work done during service is improving, as 95 percent of owners indicate the work was done right the first time in 2014, up from 93 percent in 2013. Additionally, 94 percent of customers indicate they had no problems during the post-service follow-up call with their dealer, which is a 7 percent increase from 2013.

Key Findings

• The study identifies 22 service standards that enhance the overall customer service experience. Nearly one-third (28%) of customers indicate their dealer implemented all 22 service standards in 2014, a 5 percent increase, compared with 2013. Overall satisfaction improves by 43 points to 899 when all standards are met.
• Waiting time at the dealership has been reduced, as 85 percent of customers indicate they were attended immediately on arrival at the service center in 2014, up from 82 percent in 2013. Additionally, 95 percent of customers indicate they received proactive communication from their service advisor, compared with 93 percent in 2013.
• Service advisors are prepared to receive the customers, as 74 percent of owners indicate their advisor knew about their vehicle history, which improves overall satisfaction by 14 points.
• Customers expect to receive their vehicle within 20 minutes of their arrival at the dealership once service has been completed, an expectation that 85 percent of customers indicate was met in 2014, up 2 percent from 2013. On average, satisfaction improves by 7 points when this expectation is met.
• Owners who are highly satisfied (satisfaction scores of 956 or higher) are nearly twice as likely to recommend their service dealer to family and friends compared with those who are highly dissatisfied (scores of 789 or lower). Additionally, highly satisfied customers are twice as likely to revisit their service dealer for post-warranty service.

Rankings

Maruti Suzuki ranks highest in customer satisfaction with dealer service among mass market brands for a 15th consecutive year with a score of 890. Maruti Suzuki performs particularly well across all factors. Honda and Hyundai rank second in a tie at 863.

The 2014 India Customer Service Index Study is based on evaluations from 7,416 vehicle owners. The study was fielded from May to August 2014 and includes owners who purchased their vehicle between May 2012 and August 2013.

About JD Power and Advertising/Promotional Rules www.jdpower.com/corporate
About McGraw Hill Financial www.mhfi.com

 

Luxury Vehicle Owners in India Expect Communication and a Quick Turnaround When Their Vehicle Is Serviced

2013-12-19

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SINGAPORE: 19 December 2013 — Luxury vehicle owners in India place a premium on time, so the faster that dealerships service their vehicle, the higher their level of satisfaction, according to the JD Power Asia Pacific 2013 India Customer Service Index (CSI) Study^SM released today.

The study, which for the first time measures after-sales experience satisfaction separately in two segments—luxury and mass market. It measures satisfaction among luxury vehicle owners who visit an authorized dealership service center for maintenance or repair work between the first 12 to 24 months of ownership. The study measures overall satisfaction in five factors (listed in order of importance): service quality; vehicle pick-up; service advisor; service facility; and service initiation. Overall customer satisfaction is measured on a 1,000-point scale, with a higher score indicating higher satisfaction.

Overall satisfaction among customers whose vehicles after service are returned within four hours is 907 index points.  This is 65 points higher than among those whose vehicle servicing takes more than four hours. “Vehicle service is an essential errand that needs to be completed within the least possible time,” said Mohit Arora, executive director, JD Power Asia Pacific. “In the luxury vehicle segment, the pressure for faster service turnaround is higher than in the mass market segment, in which owners are relatively less time-sensitive.”  

Additionally, luxury vehicle owners expect their dealerships to be proactive in all forms of communication. Luxury vehicle owners in India expect service advisors to keep them informed throughout the service process, beginning when they arrive at the dealership with an explanation of the work to be performed and an expectation of when it will be finished, to a thorough explanation after the service is completed. These activities are standard expectations among luxury customers which have a significant negative impact when they are not performed.

“Consumers pay a premium for a luxury vehicle, and with that price comes the expectation of a higher level of service from the dealer workshop, “said Arora. “Dealers need to align their service processes with these needs or exceed customer expectations in order to further enhance their brand image.”

Luxury vehicle owners who are highly satisfied with dealer service tend to have higher levels of advocacy and loyalty to the dealership and the brand. Among luxury owners who are “highly satisfied” with their service experience at the dealership (overall service satisfaction scores of 973 and higher), 98 percent say they “definitely would” revisit their service dealer for post-warranty service. In comparison, only 57 percent of “highly dissatisfied” owners (overall service satisfaction scores of 820 and lower) indicate the same. Similarly, 91 percent of “highly satisfied” owners say they “definitely would” purchase their next vehicle from the service dealer, compared with just 37 percent of those who are “highly dissatisfied.”

Overall luxury customer satisfaction with their dealership service experience averages 876 in 2013, 42 points higher than the mass market average of 834.

BMW ranks highest among luxury brands in customer satisfaction with a score of 892. BMW performs particularly well in the service advisor factor.

The 2013 India Customer Service Index Study for the luxury segment is based on evaluations from 238 vehicle owners. The study was fielded from May to August 2013 and includes owners who purchased their vehicle between May 2011 and August 2012.

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 and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

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

About McGraw Hill Financial www.mhfi.com

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

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Luxury Vehicle Buyers Are More Likely than Mass Market Vehicle Buyers in India To Use the Internet During and After Their Shopping Process

2014-10-07

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Singapore: 8 October 2014 — Luxury vehicle buyers in India are more likely to use the Internet during their new-vehicle shopping process and to post feedback about their purchase experience, compared with mass market vehicle buyers, according to the JD Power 2014 India Sales Satisfaction Index (SSI) Study—Luxury^SM segment, released today. 

Now in its 15th year, the study measures overall satisfaction among buyers of new luxury vehicles with their sales experience based on seven factors (listed in order of importance): delivery process; delivery timing; salesperson; sales initiation; dealer facility; paperwork; and deal. Study findings for the mass market segment were announced in August 2014.

According to the study, 46 percent of luxury vehicle buyers use the Internet during their vehicle-shopping process, compared with 29 percent of mass market vehicle buyers. Luxury vehicle buyers go online to search for information related to vehicle specifications, spare parts, warranty information and financial terms of the loan or lease options.

Additionally, 30 percent of luxury vehicle buyers post information about their purchase experience on blogs or forums and social media websites, while only 13 percent of mass market vehicle owners do the same.  

“With nearly half of luxury vehicle owners in India using the Internet while shopping and nearly one-third posting their purchase experience feedback  on social media or the Internet, it is prudent for automakers to have a system in place to monitor the reviews and feedback being posted by their customers,” said Mohit Arora, executive director, JD Power Asia Pacific. “An organization that systematically monitors and responds to feedback is likely to be perceived as proactive and customer centric, thereby enhancing its overall brand image.”

The information luxury vehicle buyers receive during their vehicle delivery process impacts satisfaction, especially regarding the vehicle maintenance schedule. Satisfaction among the 87 percent of luxury vehicle buyers who receive an explanation of the vehicle maintenance schedule during the delivery process averages 897 index points (on a 1,000-point scale), while satisfaction among the 13 percent of owners who do not receive maintenance schedule information during the delivery process averages 844.

KEY FINDINGS

• Overall sales satisfaction in the luxury segment is 890 in 2014, up from 873 in 2013. Satisfaction improves in all factors, with the largest increase in delivery timing (+26 points).

• Achieving highly satisfied customers has a positive impact on important ROI drivers like dealership service and repurchase intent. Luxury vehicle owners who are highly satisfied (sales satisfaction scores 955 and above), are nearly 1.5 times more likely than owners who are highly dissatisfied (satisfaction scores 846 and below) to take their vehicle for service at their purchase dealer. Additionally, highly satisfied owners are over 1.5 times more likely than owners who are highly dissatisfied to indicate an intention to repurchase the same brand of vehicle again.
• Moreover, satisfaction among luxury vehicle buyers is high (932) when they receive a post-sales follow-up call to schedule their first vehicle service appointment.
• Location and reputation are the two most frequently cited reasons why luxury vehicle buyers choose a particular dealership for their purchase.

• Communicating an accurate estimate of the delivery time for the new vehicle during the booking stage improves satisfaction. Overall satisfaction among customers who receive an accurate delivery time estimate during booking of their vehicle is 901, which is 54 points higher than among those who do not receive an accurate delivery time.
• Satisfaction averages 895 when luxury vehicle buyers are proactively offered vehicle financing, compared with 877 when they are not offered financing.

Rankings

BMW ranks highest in luxury vehicle sales satisfaction with a score of 891. BMW performs particularly well in sales initiation and salesperson factors. Mercedes-Benz ranks second at 890, and performs particularly well in the paperwork and delivery process factors.

The 2014 India Sales Satisfaction Index (SSI) Study for the luxury brands is based on responses from 345 new-vehicle owners who purchased their vehicle between September 2013 and April 2014. The study was fielded from March to July 2014.

 

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Long-Term Vehicle Dependability in India Declines in 2013 as Number of Unexpected Repairs Increases

2013-06-28

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SINGAPORE: 28 June 2013 — Overall dependability of vehicles in India declines for the second consecutive year, according to the JD Power Asia Pacific 2013 India Vehicle Dependability Study^SM (VDS) released today.

The study, now in its sixth 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; audio and entertainment; seats; heating, ventilation and air conditioning (HVAC); vehicle interior; engine; and transmission.

In 2013, overall vehicle dependability averages 280 problems per 100 vehicles (PP100), compared with 225 PP100 in 2012. Overall dependability is based on the number of problems reported per 100 vehicles, with a lower score reflecting higher long-term vehicle quality.

The 24 percent increase in problems in 2013 is across problem categories and models, and it cannot be attributed to a significant increase in one or more areas, or to all-new models included in the study. However, the study finds that an increased number of vehicles in India do not have extended warranties or service contracts, and the frequency whereby owners take their vehicle for scheduled or routine maintenance has decreased. Longer periods between maintenance tend to lead to an increase in problems with the vehicle.

** MUST WATCH FOR INDIA AUTOMAKERS!  Special Video interview with Mohit Arora, Executive Director

Interview topics include:

• Reasons for Decline in Overall Dependability
• Problem Areas Reported by Car Owners
• The Aging Process of a Vehicle
• Performance of American Nameplates in VDS Study
• Performance of Maruti Suzuki and Toyota Nameplates in VDS Study

Unexpected Repairs Increase

Among vehicle owners surveyed, 43 percent indicate having experienced unexpected repairs on their vehicle, up 4 percentage points from 2012. In addition, the proportion of owners who have taken their vehicle in for repairs at an authorized service centre three or more times, has doubled from 2012. On average, these customers report 2.4 times more problems than those who have not taken their vehicle in for repairs (418 PP100 vs. 174 PP100, respectively).

“Undergoing unexpected repairs has a very strong bearing on the perception of vehicle reliability, durability and overall vehicle quality,” said Mohit Arora, executive director, JD Power Asia Pacific. “Given that the average ownership cycle in India is approximately five years, the owners surveyed in this study are close to replacing their current vehicles. Higher incidences of repairs are likely to dissuade them from purchasing the same make in the future.”

Among owners who indicate that they did not experience problems with their vehicle, 70 percent say they “definitely would” recommend their current vehicle to others. When owners experience one or more problems with their vehicle, the likelihood of a recommendation drops to 46 percent.

Routine Servicing Declines

The study also finds that the routine servicing and maintenance at authorized service centres has been declining during the past two years. Only 69 percent of owners have taken their vehicle to an authorized dealer/ service centre four or more times, down from 91 percent in 2011.

“Conforming to a prescribed servicing schedule helps to keep vehicle problems and incidences of unexpected repairs in check,” said Arora “One way of ensuring that owners continue to regularly service their vehicle at authorized service centres, particularly in the post-warranty period, is by offering an extended warranty. This year the proportion of owners who are covered under an extended warranty program has declined, which may have contributed to the decline in the frequency of service visits.”

** MUST WATCH FOR INDIA CAR OWNERS! Special Video interview with Mohit Arora, Executive Director

Interview topics include:

• Importance of the findings to prospective car buyers
• Reasons why car owners are not regularly servicing their cars
• Difference between regularly and non-regularly serviced cars
• Key Takeaway for Car Owners

2013 India VDS Rankings

The study includes 61 models in 11 vehicle segments: entry compact; compact; premium compact; entry midsize; midsize; premium midsize; entry luxury; luxury; multi-utility/multi-purpose vehicle (MUV/ MPV); sport-utility vehicle (SUV); and van.

Maruti Suzuki and Toyota each have two models that rank highest in their respective segments. Maruti Suzuki’s A-star ranks highest in the compact segment and the Swift Dzire ranks highest in the entry midsize segment. Toyota receives model awards for the Innova and Fortuner in the MUV/ MPV segment and SUV segment, respectively. Honda City ranks highest in the midsize segment, and new entrants Chevrolet Cruze and Ford Figo receive awards in the premium midsize and premium compact segments, respectively.

The 2013 India Vehicle Dependability Study is based on evaluations from 7,032 original owners who purchased a new vehicle between July 2009 and September 2010. The study includes 61 models covering 16 nameplates and was fielded from January through April 2013 in 25 cities across India. The Vehicle Dependability Study is one of two JD Power Asia Pacific automotive quality studies for the India market. The 2013 India Initial Quality Study (IQS), which measures problems of new vehicles at 2 to 6 months of ownership, will be published in November.

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

About McGraw Hill Financial
McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw-Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at http://www.mhfi.com.
 

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

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Original Equipment Tire Repurchase Rates Reach 65 Percent among Vehicle Owners in India

2014-04-08

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SINGAPORE: 8 April 2014 — Vehicle owners in India who have to replace their tires prefer to repurchase the same brand of tires that were factory-installed on the vehicle when it was new, according to the JD Power Asia Pacific 2014 India Original Equipment Tire Customer Satisfaction Index (TCSI) Study^SM released today.

Customer retention for original equipment (OE) tire brands has increased steadily during the past three years to 65 percent in 2014 from 57 percent in 2012. 

“Brand familiarity and perceptions of safety are key drivers of tire purchases,” said Mohit Arora, executive director, JD Power Asia Pacific. “The majority of vehicle owners tend to refit the same brand of tires as their OE fitment because of familiarity and perceptions of safety, assuming that the vehicle manufacturer would have tested the tires on critical quality and safety parameters before fitment.”

Satisfaction with original tire brands is directly correlated with customer loyalty and advocacy. Customers who are highly satisfied (916 points and higher on a 1,000-point scale) are more than twice as likely to recommend or repurchase their current brand as highly dissatisfied customers (782 and below).

The study, now in its 14th 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, durability, traction/handling and ride.

KEY FINDINGS

• Overall satisfaction averages 844 in 2014, a 10-point improvement from 2013. Satisfaction improves in all four factors year over year, most notably in tire appearance (+11 points).
• While the percentage of owners who experience a tire-related problem declines to 10 percent in 2014 from 12 percent in 2013, overall satisfaction drops by 77 points when a problem is experienced, compared with a 58-point decline in 2013.
• Road hazard/puncture is the most commonly experienced problem. Surprisingly, 35 percent of owners who experience a tire problem do not take it in for repair.

Study Rankings

MRF ranks highest in overall customer satisfaction for a fifth consecutive year, with a score of 850 points. MRF performs particularly well in the appearance, durability and ride factors. Bridgestone ranks second with a score of 848.

The 2014 India Original Equipment Tire Customer Satisfaction Index Study is based on 4,449 responses from new-vehicle owners who purchased their vehicle between May 2011 and August 2012. The study was fielded between May and August 2013.

 

About JD Power and Advertising/Promotional Rules http://www.jdpower.com/about/index.htm
About McGraw Hill Financial www.mhfi.com

 

First-Time New-Car Buyers in India Are Evaluating More Vehicles during the Shopping Process

2014-09-29

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SINGAPORE: 30 SEPTEMBER 2014 — With income levels rising and more vehicles being purchased through car loans, first-time new-vehicle buyers in India are considering more vehicles during the shopping process, according to the JD Power Asia Pacific 2014 India Escaped Shopper Study^SM (ESS) released today.

The study, which examines the reasons why new-vehicle shoppers consider but ultimately reject certain models in favor of another, finds that 27 percent of first-time new-vehicle buyers in India seriously considered a model other than the one they purchased while shopping in 2014, up from 20 percent in 2012. One of the key aspects driving the increase in cross-shopping is the proportion of first-time new-vehicle buyers who finance their purchase through a car loan. Nearly three-fourths (73%) of first-time buyers finance their vehicle in 2014, up from 64 percent in 2012.

The study finds that buyers who finance their vehicle tend to cross-shop more than those who do not opt for financing. Thirty percent of buyers who finance their vehicle also consider other vehicles, while only 25 percent of those who pay cash for their vehicle cross-shop. Furthermore, 35 percent first-time vehicle buyers have a monthly household income of INR 50,000 or more in 2014, up from 18 percent in 2012, which enhances their credit worthiness and enables them to qualify for a higher loan amount.

“While inflation rates have gone up in India, a rise in income levels coupled with greater availability of credit has given first-time car buyers the opportunity to evaluate alternative vehicles across segments and price bands,” said Mohit Arora, executive director at JD Power Asia Pacific, Singapore. “This is vital for automakers in India to consider as they try to increase their market share. Introduction of new body types across the various price levels will likely add more vehicle choices for first-time buyers, who account for nearly half of new-vehicle sales in the country.”

KEY FINDINGS

• New-vehicle shoppers are increasingly placing greater importance on a vehicle’s interior in their selection process. Among shoppers, 15 percent indicate the vehicle interior is the primary reason they rejected a vehicle in 2014, an increase from 4 percent in 2012. Issues such as interior styling, driver’s seat and rear-seat comfort are among the top interior-related reasons cited for rejecting a vehicle.
• Car buyers in India are spending more time researching their vehicle, as 35 percent indicate they researched the vehicle they purchased before visiting the dealership in 2014, up from 26 percent in 2012. Among buyers of newly launched models, 45 percent indicate they researched their vehicle in 2014, compared with only 24 percent in 2012.  
• Overall customer retention drops to 38 percent in 2014, down from 40 percent in 2013. Ford, Honda and Hyundai have improved their customer retention rates the most year over year.
• Maruti Suzuki is the most considered nameplate among new-vehicle shoppers for the 10th consecutive year, with 41 percent of all shoppers eventually purchasing one of its models. New-vehicle buyers who purchase Volkswagen, Ford and Renault models shop the most before purchasing their vehicle, while buyers of Mahindra, Maruti Suzuki, Tata and Toyota models shop the least often before purchasing.

The 2014 India Escaped Shopper Study is based on the responses from 8,499 buyers and 3,448 rejecters of new cars and new utility vehicles who purchased their vehicle between September 2013 and April 2014. The study, which examines the reasons why new-vehicle shoppers consider but ultimately reject certain models in favor of another, was fielded from March through July 2014.

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 

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

Follow us on Twitter @jdpower

 

Automotive Brands Struggle to Differentiate Themselves in the India Car Market

2014-09-25

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SINGAPORE: 24 SEPTEMBER 2014 — Very few automotive brands in the intensely competitive India passenger-car market are able to establish a distinct position in car buyers’ minds, according to the inaugural JD Power Asia Pacific 2014 India Brand Influence and Positioning Study^SM (BIPS) released today.

The study measures automotive brand influence in India of mass market passenger car brands, based on consumer awareness and perceptions of the brand. Strong brand influence may have a positive effect on purchase intent for a particular brand, as brand influence scores correlate highly with brand consideration rates. The study also segments the market using psychographic, demographic and behavioral attributes to help automakers identify and understand who their best prospects are in the new-car market.

“Brand image and reputation have gained significant importance over the last five years for consumers in the Indian auto industry and are key purchase criterion,” said Mohit Arora, executive director at JD Power Asia Pacific, Singapore. “Brand Influence Scores measure the impact a brand has in the market, which is critical for automakers to track and measure.”

According to the study, consumers in India have substantial difficulty distinguishing between many of the larger European and U.S automotive brands such as Fiat, Ford and Renault. This is particularly prevalent in the Northern and Eastern regions of India where consumers perceive many global brands as having similar vehicles and business approaches.

In contrast, Japanese brands, such as Honda and Toyota, are able to more effectively differentiate themselves from other brands. Consumers in India perceive these Japanese brands to be more contemporary—offering the latest technology and engineering—and perceive them to have a more global image than their European, Korean and U.S. counterparts.

Despite its Japanese origin, consumers view Maruti Suzuki as an Indian brand, less modern than other brands but distinctly positioned as offering affordable and fuel-efficient cars. Similar to Maruti Suzuki, Tata also is seen as a brand primarily positioned on affordability and fuel efficiency.

The study also finds there is marked divergence between automakers’ brand messages and the degree to which customers actually internalize these themes. Although many advertisements focus on excitement, elegance and trendiness of a new vehicle, such messages often do not resonate with customers. Instead, customers prefer advertising that provides information on a vehicle’s new features, technology-related improvements and innovation in order to distinguish it from other vehicles in the market.

“Understanding their current positioning relative to the competition from a consumer’s perspective as well as the type of messaging themes that appeal most to a target segment helps automotive manufacturers sharpen their marketing efforts,” said Arora. “Generally, consumers are able to differentiate more effectively on vehicle features they can see, touch and feel than on intangibles.”

Key Findings

• In India, brands with the highest brand influence scores (on a 1,000-point scale) are Maruti Suzuki (837); Hyundai (758); Toyota (729); Honda (723); and Tata (703).   
• ŸMitsubishi (565) and Fiat (586) are amongst brands with the lowest influence.
• ŸMore consumers in Western and Southern regions of India indicate that they regularly post ratings and reviews for others to view online, compared with consumers in other parts of India.
• ŸAwareness and favorability perceptions change significantly when it comes to non-metros – where there is less differentiation among many of global brands.

The 2014 India Brand Influence and Positioning Study is based on interviews with 8,009 car owners who have owned their vehicles from 30 to 42 months and who were asked to compare two vehicle brands. The study was fielded from January through April 2014 across 30 cities in 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 

 

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

Follow us on Twitter @jdpower

 

Reputation and Operational Effectiveness Drive Choice of Dealer Among New-Vehicle Buyers in India

2014-09-02

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Singapore: 28 August 2014 — New-vehicle buyers in India are increasingly choosing dealers based on the dealers’ reputation and operational effectiveness, according to the JD Power 2014 India Sales Satisfaction Index (SSI) Study^SM released today.  

The study finds that reputation of the dealer as a reason to purchase from a particular dealer has increased by 11 percent during the past five years.  Additionally, faster delivery times, availability of the exact model and a hassle-free negotiation are the other operational reasons that have shown a significant increase during the same period.

Owners who selected their dealer based on its reputation, availability of the exact model and hassle-free negotiation pay an average of 4 percent more for their vehicle than those who chose a dealer for other reasons, such as location or receiving the best deal.

“The Indian automotive industry has been facing significant challenges over the past two years, but dealers that are able to present their offerings to customers in a transparent manner, aided with availability of the exact model and commitment of a faster delivery time are often rewarded because customers are willing to spend more for their vehicle,” said Mohit Arora, executive director at JD Power Asia Pacific, Singapore.

Now in its 15th year, the study examines seven factors that contribute to new-vehicle buyers’ overall satisfaction with the sales experience (listed in order of importance): delivery process, delivery timing, salesperson, sales initiation, dealer facility, paperwork and deal.

The study finds that 29 percent of new-vehicle owners used the Internet during the new-vehicle shopping process in India. The sites owners use most often in the shopping process are manufacturer websites (53%) and the auto sections of news organizations’ websites (40%).

“Automakers need to work on a strategy to continuously monitor and respond to any feedback posted on such websites, as reviews and comments posted on these websites are likely to impact perceptions  consumers have of the brands during their shopping  process,” said Arora. “With heightened competitive intensity in the Indian automotive market, most automakers are ensuring better implementation of standard practices, faster vehicle delivery and creating an engaging customer experience through proactive communications resulting in an increase in the overall purchase process satisfaction.”

KEY FINDINGS

• Overall sales satisfaction in the mass market segment is 857 index points on a 1,000-point scale in 2014, a 16-point increase from 2013. The increase in overall satisfaction is attributed to strong improvements across all factors, most notably in delivery timing (+20 points) and delivery process (+18 points).
• The amount of time needed to complete the paperwork is nine days in 2014, compared with 10 days in 2013. In addition, the average delivery time is nine days in 2014, compared with 12 days in 2013.
• In 2014, 49 percent of owners indicate that they received a discount when they purchased their new vehicle, up from 36 percent in 2013. The average amount of discount has also increased 12.4 percent year over year.
• While more than 90 percent of owners indicate that the salesperson introduced themselves and initiated talks prior to the purchase of the vehicle, only 15 percent of owners were asked for feedback on their buying experience or got their vehicle delivered with special ceremony.
• Owners who are highly satisfied (sales satisfaction scores above 926), are 1.5 times more likely than owners who are highly dissatisfied (satisfaction scores below 815) to recommend their purchase dealer to family and friends. Additionally, highly satisfied owners are 1.5 times more likely than owners who are highly dissatisfied to indicate an intention to repurchase the same brand of vehicle again.

Rankings

Toyota ranks highest with a score of 866, performing particularly well across all factors. Maruti Suzuki ranks second with a score of 860. Honda, Hyundai and Mahindra rank third in a tie at 859 each.

The 2014 India Sales Satisfaction Index (SSI) Study is based on responses from more than 8,000 new-vehicle owners who purchased their vehicle between September 2013 and April 2014, and includes evaluations of more than 71 models within the mass market segment. The study was fielded from March to July 2014.

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

About McGraw Hill Financial www.mhfi.com 

 

Long-Term Vehicle Dependability in India Improves, as Owners Report Fewer Problems with Their Vehicles

2014-06-27

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SINGAPORE: 30 June 2014 — Long-term vehicle dependability in India improves, as 38 percent of owners indicate not experiencing any problems with their vehicle, according to the JD Power Asia Pacific 2014 India Vehicle Dependability Study^SM (VDS) released today. This is the highest proportion of owners not experiencing any problems since 2012, when 34 percent of owners did not report any problems.

The study, now in its seventh 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; audio and entertainment; seats; heating, ventilation and air conditioning (HVAC); vehicle interior; engine; and transmission.

Overall vehicle dependability averages 218 problems per 100 vehicles (PP100) in 2014, compared with 280 PP100 in 2013. Overall dependability is based on the number of problems reported per 100 vehicles, with a lower score reflecting higher long-term vehicle quality.

The study finds that although owners of diesel-fueled vehicles in India continue to report more problems overall, compared with owners of petrol-fueled vehicles, the gap between the two has narrowed over the past three years. In 2014, owners of diesel vehicles report 234 PP100 overall, which is 22 PP100 higher than the number or problems reported by owners of petrol vehicles, compared with a gap of 71 PP100 in 2012. Across categories, problems with diesel vehicles have improved notably, especially in driving experience, where fewer instances of such problem symptoms as uneven tire wear, excessive misalignment of wheels and unusual suspension noises have been reported. Furthermore noise-related problem symptoms reported by diesel car owners have also dropped to 32PP100 in 2014 from 47 PP100 in 2011. 

 “With improvements in engine technologies and overall vehicle build quality, diesel car owners are reporting fewer noise related problems than three years ago,” said Mohit Arora, executive director at JD Power Asia Pacific, Singapore. “While savings in terms of running costs have always been an advantage for diesel car owners, going forward, the ongoing refinements are likely to lead to an enhanced ride-comfort and a more positive ownership experience over the longer-term.” 

Among owners who indicate they did not experience problems with their vehicle, 70 percent say they “definitely will” recommend their current model to others. Advocacy declines to 47 percent among those who experience at least one problem with their vehicle. Additionally, among owners of problem-free vehicles, 49 percent say they “definitely will” repurchase their current make. Loyalty drops to 33 percent among those who report one or more problems with their vehicle. 

2014 India VDS Rankings

The study includes 70 models in 12 vehicle segments: entry compact car; compact car ; upper compact car; premium compact car; entry midsize car; midsize car; premium midsize car; entry luxury car; luxury car; multi-utility/ multi-purpose vehicle (MUV/ MPV); sport-utility vehicle (SUV); and van.

Maruti Suzuki and Toyota each have two models that rank highest in their respective segments. Maruti Suzuki’s Swift Dzire ranks highest in the entry midsize segment for a fourth consecutive year, and Maruti Suzuki SX4 ranks highest in the midsize segment. Toyota receives model awards for the Innova  in the MUV/ MPV segment and Fortuner in the SUV segment.

The Hyundai Santro ranks highest in the compact segment for the second time in three years. Nissan Micra ranks highest in the upper compact segment, while Škoda Fabia and Honda Civic rank highest in the premium compact and the premium midsize segments, respectively.

KEY FINDINGS

• The average number of kilometers driven by owners has declined each year since 2011. On average, original owners of 2.5- to 3.5-year-old vehicles indicate they drove their vehicle 36,203 kilometers, which is 13 percent less than in 2011. In 2014, owners who drove no more than 50,000 kilometers, on average, report 95 PP100 fewer problems than those who drove more than 50,000 kilometers. This year, 81 percent of owners indicate they have traveled 50,000 kilometers or fewer, on average, in their vehicle over the course of the ownership period, up from 73 percent in 2011.
• The proportion of owners who drive their own vehicle vs. those who employ a driver has increased to 87 percent in 2014. On average, self-driving owners report fewer problems than those who employ a driver (215 PP100 vs. 239 PP100, respectively).
• Fewer owners indicate their vehicles have undergone repairs for unexpected problems in 2014 (37%) than in 2013 (43%). Owners who experience unexpected repairs report a significantly higher number of problems than those who do not (363 PP100 vs. 133 PP100, respectively).

About the Study

The 2014 India Vehicle Dependability Study is based on evaluations from 8,312 original owners who purchased a new vehicle between July 2010 and September 2011. The study includes 70 models covering 16 nameplates and was fielded from January through April 2014 in 30 cities across India. The Vehicle Dependability Study is one of two JD Power Asia Pacific automotive quality studies for the India market. The 2014 India Initial Quality Study (IQS), which measures problems of new vehicles at 2 to 6 months of ownership, will be published in November.

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

About McGraw Hill Financial www.mhfi.com

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Dealers in India Want Closer Collaboration with Automakers on Sales and Marketing Activities

2014-05-28

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SINGAPORE: 29 May 2014 — Auto manufacturers in India are striving to help their dealers cope with a slowing domestic market by helping them improve the after-sales aspect of their business, according to the JD Power Asia Pacific 2014 India Dealer Satisfaction with Automotive Manufacturers Index (DSWAMI) Study^SM released today. 

Despite an overall improvement in satisfaction, only 42 percent of dealers estimate they will be profitable in FY 2013-2014. The situation is more critical for dealerships based in India’s six largest cities, with only 31 percent expecting to make a profit this year. Dealers rely on sales-related proceeds from new-car sales, accessories, insurance and credit/ loans commissions for about half of their revenues. Given that the overall vehicle sales are down 6 percent from 2013, a larger number of dealerships have reported estimated losses in 2014.

“Given the relatively weak outlook on vehicle sales, dealerships are concerned about the viability of their business,” said Mohit Arora, executive director of JD Power Asia Pacific. “Increasing the share of service revenue is one of the ways in which dealers can survive in these tough times. Retaining customers beyond the standard warranty period has always been a challenge for dealerships in India. With sales revenues under pressure, focusing on their service business is essential not only for enhancing dealer viability, but also ensuring survival.”

Now its fourth 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.

Overall dealer satisfaction with automotive manufacturers averages 827 points on a 1,000-point scale in 2014, up from 817 points in 2013. Satisfaction improves across eight of the nine factors, most notably in parts, after-sales team and warranty claims.

KEY FINDINGS

• Automakers are increasingly helping dealers fund their spare parts inventories, as 48 percent of dealers indicate receiving financial assistance to buy spare parts stock in 2014, up from 41 percent in 2013.
• Nearly half (48%) of dealers indicate their warranty claims are settled within 15 days, compared with 42 percent in 2013.
• Warranty labour rate—the hourly rate at which the automaker reimburses the dealership for any work performed on the vehicle under warranty—is reported to be higher this year with 25 percent of dealerships reporting warranty labour rates of more than Rs. 300/hour, up from 18 percent in 2013.
• The study finds that 19 percent of dealers perceive that their automaker does not have a range of vehicles to compete effectively in the market. Dealers that indicate their automaker does not have a range to effectively compete have an average overall satisfaction score 118 points below the study average.

Arora noted that dealers in India are increasingly seeking greater support from the automakers toward enhancing the effectiveness of their marketing and sales related activities.

Dealers who receive support from manufacturers with sales and product training, guidance related to test drives and vehicle display, flexibility in promotion and pricing policy not only report higher satisfaction scores in this study, but also are more likely to indicate they are profitable.

“Dealers are looking up to their principals to provide financial support and greater flexibility in planning and executing local campaigns in addition to launching more marketable models,” said Arora. “Manufacturers that are able to extend this support are likely to develop a stronger business relationship with their franchise.”

NAMEPLATE RESULTS

Toyota ranks highest in dealer satisfaction with a score of 925. Toyota performs particularly well in eight of the nine factors. Maruti Suzuki ranks second with a score of 884, followed by Honda at 869.

About the Study

The 2014 India DSWAMI Study is based on responses from 658 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 between February and March 2014.

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

About McGraw Hill Financial www.mhfi.com 

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