Category: Japan

Lexus Ranks Highest in Luxury Segment; Toyota Ranks Highest in Mass Market Segment

2020-09-25

TOKYO: 2 Oct. 2020 — The satisfaction levels for factory- and dealer-installed navigation systems in new vehicles have increased overall since 2019; however, there is still room for improvement in the ease of use, according to the JD Power 2020 Japan Navigation Systems Customer Satisfaction Index Study^SM—OEM, released today.

 

Now in its 13th year, the study measures satisfaction with factory- and dealer-installed navigation systems. Six factors comprised of 20 attributes are examined (listed in order of importance): navigation function (23%); display screen (19%); audio and video function (18%); ease of use (17%); design and texture (16%); and other functions, apps and services (7%). Satisfaction is calculated on a 1,000-point scale.

 

“Although overall satisfaction with navigation systems has steadily improved, users still indicate a relatively lower level of satisfaction with the ease of use,” said Hayato Iwakura, manager of the automotive division at JD Power Japan. “This suggests that manufacturers need to analyze the causes for low satisfaction in this area in order to find solutions. Also, as vehicle navigation systems are now more frequently equipped with connectivity, it will become critical for manufacturers to offer additional value and to develop more appealing products to differentiate themselves from their competitors as well as to distinguish their product from smartphones, which are also used to facilitate connectivity.”

 

Following are some of the key findings of the 2020 study:

• Decreased gaps in satisfaction are seen among mass market brands: Overall satisfaction with vehicle navigation systems shows a slower improvement year over year to 613 in 2020, an increase of only 13 points from 2019 (as compared with the 26-point increase from 2018 to 2019). In the mass market segment, the gaps in overall satisfaction are narrowing among brands.
• Satisfaction with display screens considerably improves: Among the six factors comprising overall satisfaction, the highest satisfaction this year is in the display screen factor (635),  a substantial increase of 46 points during the past two years. Additionally, larger improvements have occurred in all three attributes of this factor during the same period of time: Screen size, clarity of screen and screen location.
• There is room for improvement in the ease of use: Among all factors, the lowest level of satisfaction during the past two years has been in the ease of use factor (590 in 2020), with ratings this year of 5.83 points (on a 10-point sale) for ease of understanding menu structure and operation procedure and 5.84 for ease of operating navigation system by voice. Among age groups, satisfaction with ease of use varies widely and decreases by age of user: 626 points among those 30 years old or under; 586 points among those ages 40 to 59; and 570 points among those 60 years old or older. However, satisfaction is lower among users who have used a touch panel or switches located on the center console to operate their navigation system than among users who have used other tools.
• Connectivity is more frequently installed on navigation systems: About two-thirds of owners (62%) say that they have a navigation system with smartphone connectivity, an increase of 10 percentage points during the past two years, while 41% have a vehicle DCM , an increase of 6 percentage points during the past two years.
• Increased interest in security-related functions or applications: Three-fourths of owners (75%) have had a dashboard camera installed on their vehicle, an increase of 24 percentage points during the past two years. The study also asks owners if they have an interest in functions/applications or services on a navigation system using a communication network. The most frequently cited answer is an anti-theft or an accident emergency call function or application (38%), the highest interest level in the past two years.

 

Study Rankings

Among the five brands in the luxury segment, Lexus ranks highest for a ninth consecutive year with a score of 702. Lexus achieves the highest scores in all six factors. Lexus is followed by BMW (642) and Audi (637).

Among the nine brands in the mass market segment, Toyota ranks highest for a third consecutive year with a score of 622. Toyota receives the highest scores in three factors: navigation function; other functions, apps and services; and ease of use. Toyota is followed by Nissan (619) and Subaru (609).

 

The 2020 Japan Navigation Systems Customer Satisfaction Index Study—OEM is based on responses from 974 luxury vehicle owners and 6,323 mass market vehicle owners who purchased a new vehicle equipped with a factory- or dealer-installed navigation system from April 2019 through March 2020. The study was fielded in July 2020.

 

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

 

Alpine Ranks Highest for Ninth Consecutive Year

2020-10-16

TOKYO: 22 Oct. 2020 — Customer satisfaction with aftermarket in-dash navigation systems has increased overall from last year, but the ease of use is a common challenge among owners of both factory- and dealer-installed navigation systems and aftermarket navigation systems, according to the JD Power 2020 Japan Navigation Systems Customer Satisfaction Index StudySM—Aftermarket, released today.

 

The study, now in its 14th year, measures customer satisfaction with aftermarket in-dash vehicle navigation systems. Six factors comprised of multiple attributes are examined (listed in order of importance): navigation function (27%); audio and video function (18%); display screen (18%); design and texture (17%); ease of use (14%); and other functions, apps and services (5%). Satisfaction is calculated on a 1,000-point scale.

“Customer satisfaction has increased for the audio/image quality and the display screen, on which vehicle owners place high importance,” said Hayato Iwakura, manager of the automotive division at JD Power Japan. “This improvement in satisfaction is a result of the continuous efforts of manufacturers to improve navigation systems to meet the expectations of their customers. This study also finds that the increase in score is driven by satisfaction with smartphone connectivity to the navigation system in order to play music or movies.”

 

Following are some of the key findings of the 2020 study:

• Gaps in satisfaction are narrowing among brands: Overall customer satisfaction with aftermarket in-dash navigation systems averages 631 points, a slight year-over-year increase of eight points compared to an increase of 18 points from 2018 to 2019. Among the five brands included in the study, three brands have achieved the same score this year, which narrows the gap in satisfaction among brands.
• Satisfaction is highest in the display screen factor, while there is room for improvement in the ease of use factor: Among the six factors comprising overall satisfaction, the highest satisfaction this year is in the display screen factor (648). In contrast, the lowest satisfaction is in the ease of use (606), the factor for which satisfaction has remained relatively low for the past two years. Results for this factor are similar in score in the JD Power 2020 Japan Navigation Systems Customer Satisfaction Index StudySM—OEM, demonstrating that improving satisfaction with ease of use is a common challenge for manufacturers of both factory- and dealer-installed navigation systems and aftermarket in-dash navigation systems.
• Audio and video function satisfaction improves: The largest year-over-year improvement is seen in the audio and video function factor (638), an increase of 14 points from 2019. For the past two years, satisfaction in this factor has increased. In the audio and video function factor, satisfaction is higher among owners who have used the HDD or memory in the navigation system or the DVD/Blu-ray feature than among owners who have used the AM/FM radio, CD or one-segment/full-segment broadcasting. Moreover, the study finds that owners who have used the internet radio/internet video distribution or the streaming services are more satisfied than are owners of the aforementioned features.
• Smartphone connections are more frequently used: Approximately two-thirds (66%) of owners say that they have connected their smartphone to the navigation system, an increase of 10 percentage points during the past two years. The study also asks owners which functions/applications or services via internet they have an interest in when considering their next vehicle purchase. The most frequently cited answer is map updates (33%), followed by information service/applications such as for news or weather forecasts (26%), both of which reflect year-over-year increases of 5 percentage points each.

 

Study Rankings

Alpine ranks highest for a ninth consecutive year, with a score of 694. Alpine achieves the highest scores in all six factors among all brands included in the rankings. Pioneer (628) ranks second, and Denso Ten, Kenwood and Panasonic (619) rank third in a tie.

The 2020 Japan Navigation Systems Customer Satisfaction Index Study—Aftermarket is based on responses from 1,920 vehicle owners who purchased an aftermarket navigation system from April 2018 through March 2020. The study was conducted via internet and was fielded in July 2020.

 

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

 

Audi Ranks Highest in Sales Satisfaction among Luxury Brands;

Toyota Ranks Highest among Mass Market Domestic Brands

2020-08-18

TOKYO: 20 Aug. 2020 — The JD Power 2020 Japan Sales Satisfaction Index (SSI) StudySM, released today, has been redesigned for the first time in seven years in accord with the changes in automotive environment and sales approaches at dealerships. The redesigned study collects a more extensive amount of data on customer vehicle shopping experiences and purchase behaviors than in previous years.

“While customers utilize vehicle information obtained at the dealership they visit, they have already been exposed to information gathered outside the dealership, such as on the internet,” said Keiko Matsuda, manager of the automotive division at JD Power. “Therefore, it is imperative that every manufacturer provides enough information so salespersons are able provide a comprehensive presentation and a personalized shopping experience that convey the appeal of new vehicles to each customer, which will increase satisfaction.”

 

Following are some of the key findings of the 2020 study:

• Overall sales satisfaction is 726 points: In 2020, overall sales satisfaction averages 726 points (on a 1,000-point scale). By factor, the sales satisfaction score for dealer facilities and support is 732, while the score is 722 for negotiations; 730 for contract procedure; and 723 for delivery.
•   Luxury brand customers are more satisfied: The redesigned study measures satisfaction in three segments: luxury, mass market domestic, and mass market import. The sales satisfaction score for luxury brands averages 767 compared with 723 for mass market domestic brands. Mass market import brands did not have sufficient sample size to qualify for rankings.
•  Highlighting features and functions is key to a successful sales negotiation: Customers considering a vehicle purchase most frequently place importance on price (59%), car size (59%) and safety (52%). However, after negotiations, safety performance (53%), ease of driving (46%) and car size (42%) are considered most often as appeal points. There are some areas that customers are unlikely to consider when gathering advance information that dealers should focus on in demonstrations and negotiations: the latest technology/features (36%) and car navigation/AV systems and other equipment (26%). Additionally, dealers should consider offering customers hands-on experience with these technologies/functions or systems.
• One-third of customers visit manufacturer or dealer websites: During new-vehicle purchase considerations, customers most frequently refer to vehicle brochures or leaflets (52%); showroom display vehicle/demo car (44%); and opinions from dealer sales representatives/product advisor (39%), followed by information gathered on the internet, such as make/dealer websites (33%) and news/information sites (26%). By age group, customers use different devices to visit websites. A majority (82%) of customers ages 10 to 29 years use a smartphone, compared with just 13% of customers who are age 50 and older.
• After-sales follow-up activities are also important: Among customers who received an after-sales explanation or a follow-up from their dealer on how to use vehicle features and functions, sales satisfaction is 753, which declines to 653 among customers who did not receive these activities. Similarly, satisfaction is higher (752) among customers who were asked about how they liked the vehicle or who received an after-sales courtesy call, and is lower (629) among customers who were not asked or did not receive a call. This suggests that follow-up activities from the dealerships are also important.

 

Study Rankings

Luxury Brands
Among the five luxury brands included in the study, Audi (775) ranks highest. Audi performs particularly well in three factors: negotiations, contract procedure and delivery. Lexus (772) ranks second.

Mass Market Domestic Brands
Among the eight mass market domestic brands included in the study, Toyota (732) ranks highest for the first time since the study’s inception. Toyota performs particularly well in two factors: negotiations and delivery. Honda (728) ranks second and Mazda (727) ranks third.

Mass Market Import Brands
No official rankings are published for this segment due to an insufficient or small sample size.

 

The 2020 Japan Sales Satisfaction Index (SSI) Study measures satisfaction with the sales process at automotive dealerships among new domestic and import vehicle purchasers. Customer satisfaction is based on four factors that are comprised of multiple attributes (in order of importance): delivery (26%); dealer facilities and support (26%); negotiations (26%); and contract procedure (21%).

 

The study, now in its 19th year and redesigned this year, is based on responses from 7,180 buyers. The data for those who purchased their new vehicle at a manufacturer-authorized dealer was collected between April 2019 and March 2020, after two to 13 months of ownership. The online survey was fielded from May through June 2020.

 

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

 

Lexus, Nissan and MINI Rank Highest in Respective Segments

2020-08-25

TOKYO: 27 Aug. 2020 — The more satisfied a vehicle buyer is with the dealership, the more likely they are to use the same dealership for after-sales services, according to The JD Power 2020 Japan Customer Service Index (CSI) Study^SM, released today.

This year’s study has been redesigned for the first time in seven years in accord with the changes in the automotive environment and sales approaches at dealerships. The redesigned study collects extensive data on after-sales service at authorized dealers, as well as on customer experiences and customer intent to use the same dealerships for after-sales service.

“Dealerships are required to treat the customers in ways that make them feel that not only the service representative but also the rest of the staff is taking care of them,” said Keiko Matsuda, manager of the automotive division at JD Power. “For customers’ long-term vehicle ownership and satisfaction with the dealership, it is crucial for dealers to improve satisfaction across the entire customer experience in order to increase intent to use the dealership for the various after-sales services they offer. Dealers should also improve their user-friendliness and offer additional value to customers to ensure a high level of loyalty.”

In 2020, overall customer satisfaction averages 714 points (on a 1,000-point scale). By factor, the scores in three categories are: dealer facilities and support, 713; booking/dropping off the car, 721; and service quality/car delivery, 708.The redesigned study measures satisfaction in three segments: luxury, mass market domestic and mass market import. Satisfaction scores this year are: 755 for luxury brands; 712 for mass market domestic brands; and 716 for mass market import brands.

 

Following are some key findings of the 2020 study:

• Highly satisfied customers tend to use the same dealer for after-sales service: Among customers with high service satisfaction (score of 801 points or higher), 67% say “they would take their vehicle to the same dealer for after-sales service the next time as well, compared with just 23% of customers with moderate satisfaction (score of 601 to 800 points). Additionally, 80% of customers with high satisfaction say they would use the same dealer for a “shaken inspection,” while 51% of customers with moderate satisfaction say the same. Likewise, for purchase and exchange of tires and a coating treatment, 42% and 50%, respectively, of customers with high satisfaction say they would use the same dealer, compared with 20% and 24%, respectively, of customers with moderate satisfaction. These figures suggest that as satisfaction increases, customer intent to use the same dealer for after-sales service also increases.
• Customer treatment by dealership staff other than the service representative influences customer satisfaction: Among customers who say that other staff members were polite enough to respond if the representative was absent or busy with other customers, satisfaction averages 850 points, but substantially decreases to 464 when this does not occur. Similarly, among customers who say that the staff other than the service representative cared about them, satisfaction averages 870, and declines to 505 among for those who do not agree. This suggests that it is important for dealers to educate all their dealer staff members on how to treat customers even though they are not in charge of those customers so that they feel they are being taken care of.
• Customers have high expectations of the dealer concerning the ease of dealership processes, including online booking, benefits and a variety of payment methods: The study finds that customers strongly want dealer processes to become easier to use, including online booking of the date and time of visit (27%); benefits and preferential treatment according to the number of purchases and possession periods (25%); and diversity in payment methods (21%). Only 7% of customers “filled an appointment form on the make/dealer’s website” for booking an after-sales service. This suggests that manufacturers and dealers need to improve the convenience and the user-friendliness of their websites.

 

Study Rankings

Luxury Segment
Among the five luxury brands included in the study, Lexus ranks highest with a score of 795 points. Lexus performs particularly well in all three factors.

Mass Market Domestic Segment
Among the eight mass market domestic brands included in the study, Nissan (730) ranks highest, performing particularly well in all three factors. Toyota(719)ranks second, Honda(717)ranks third.

Mass Market Import Segment
Among the four mass market import brands included in the study, MINI (731) ranks highest, and performs particularly well in two factors, booking/dropping off the car and service quality/car delivery. Volkswagen(727)ranks second.

 

The Japan Customer Service Index (CSI) Study measures overall satisfaction with after-sales service among new-vehicle owners after 14-49 months of ownership. The study surveys owners who visited a manufacturer-authorized service center for maintenance or repair work in the past year. Satisfaction is based on the combined scores of three factors, each of which comprises multiple attributes. These factors are (in order of importance): dealer facilities and support (34%), booking/dropping off the car (31%) and service quality/car delivery (35%).

The study, now in its 19th year and redesigned this year, is based on responses from 8,687 owners who purchased their new vehicle between April 2016 and March 2019. The online survey was fielded in May and June 2020.

 

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

 

Honda is Highest-Ranked Model in Two Segments

2020-09-11

TOKYO: 17 Sept. 2020 — Improvement in new-vehicle quality has resulted in higher levels of vehicle appeal as well as brand loyalty among owners, but presents new challenges to automotive manufacturers, according to the JD Power 2020 Japan Automotive Performance, Execution and Layout (APEAL) Study^SM, released today.

“The Japanese auto industry has improved new-vehicle quality during the past six years, and thus owners’ brand loyalty and the appeal of new vehicles have increased,” said Koichi Urayama, senior director of the automotive division at JD Power Japan. “This trend in improved quality is seen for many brands, which suggests that it has become difficult for manufacturers to differentiate themselves from their competitors in vehicle appeal. With a growing diversity of features and functions available, auto manufacturers will need to work harder to provide more appealing vehicles by identifying functions that existing and targeted customers demand in a new vehicle. As owner evaluations have become increasingly important to manufacturers, JD Power will substantially redesign the APEAL Study to provide even more valuable information in 2021.”

Now in its 10th year, the study examines how gratifying a new vehicle is to own and drive. Owners evaluate their new vehicle across 77 attributes, grouped into 10 categories of vehicle performance: exterior; interior; storage and space; audio/communication/entertainment/navigation (ACEN); seats; heating, ventilation and air conditioning (HVAC); driving dynamics (driving performance); engine/transmission; visibility and safety; and fuel economy. These attributes are aggregated to calculate an overall APEAL index score measured on a 1,000-point scale.

 

Following are some of the key findings of the 2020 study:

•  New-vehicle appeal achieves the highest satisfaction since 2014: The industry average APEAL score has increased this year by 12 points to 657, compared with 645 in 2019. This is the highest score since 2014, the first year the study was redesigned, and represents a six-year improvement of 35 points from 622.
•  Brand loyalty also increases from 2014: Among new-vehicle owners, brand loyalty has increased by 14 percentage points since 2014, with 82% indicating that they ”definitely will” or “probably will” purchase the same brand in 2020, compared with 68% who said the same in 2014.
• Luxury brands continue to dominate: There is still a large gap in APEAL scores between the luxury segment, which includes mainly import brands but also Lexus (average score is 739 this year vs. 711 in 2014), and the mass market brands (average of 653 vs. 619 in 2014).
• Plug-in hybrids surpass diesel-fueled vehicles for fuel economy: For fuel economy or driving range by engine type, satisfaction with diesel-fueled vehicles, which was highest from 2014 to 2019, has been eclipsed this year by plug-in hybrids, outperforming diesel-fueled vehicles for the first time. The APEAL score this year for plug-in hybrids in this aspect is 783, up from 701 in 2014, representing a significant increase of 82 points.
• Electric vehicles improve in performance: Similarly, satisfaction with driving range for electric vehicles has steadily improved by 85 points to 637 in 2020 from 552 in 2014.

 

Highest-Ranked Brands

BMW ranks highest in overall APEAL with a score of 756. Lexus ranks highest among luxury brands with a score of 746. MINI ranks highest among mass market brands with a score of 736.

Segment-Leading Models

• Mini-Car segment: Daihatsu MOVE canbus and Honda N-BOX (tie)
• Compact segment: Honda FIT
• Midsize segment: Lexus UX
• Minivan segment: Toyota ALPHARD

 

The 2020 Japan APEAL Study is based on responses from 19,435 purchasers of new vehicles in the first two to nine months of ownership. The study was fielded online from May through June 2020.

 

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

 

 

Hino Ranks Highest in Both Heavy-Duty and Light-Duty Segments

2019-12-13

TOKYO: 18 Dec. 2019 — When truck manufacturers are regarded as logistics solution partners of truck owners, satisfaction and loyalty increases, according to the JD Power 2019 Japan Heavy-Duty Truck Ownership Satisfaction Study^SM–Wave 2 and the JD Power 2019 Japan Light-Duty Truck Ownership Satisfaction Study^SM–Wave 2, both released today.

The annual studies, the 15th for heavy-duty trucks and the 14th for light-duty trucks, measure overall satisfaction of commercial fleet owners with manufacturers and their respective authorized truck dealers, including managers of truck freight companies. Satisfaction is determined by examining owners’ evaluations of multiple attributes grouped into four factors (listed in order of importance): vehicle (44%); service (23%); sales (21%); and cost (12%). Satisfaction is calculated on a 1,000-point scale.

The following are some key findings of the 2019 studies:

• Levels of owner satisfaction almost unchanged: Ownership satisfaction for heavy-duty trucks averages 569 points, an increase of 4 points from the last study published in January 2019, and 548 points for light-duty trucks, a decrease of 2 points.
   
• Satisfaction slightly increases in the after-sales service factor: In the heavy-duty truck segment, the largest improvement is in the after-sales service factor (+11 points from 2018), driven by improvements in the areas of customer response during the ordering process of spare parts and customer treatment for the vehicle maintenance and repair. On the other hand, the level of satisfaction for the facility attribute remains the same in the heavy-truck segment, while decreasing in the light-duty truck segment. In particular, more customers indicate that the facility or showroom was crowded each year—30% for heavy-duty truck customers and 28% for light-duty truck customers.
   
• Trucks are being equipped with advanced technologies at a rapid pace: The studies also examine the installation of advanced technologies, including collision-mitigation braking systems; lane-keeping assist systems; drowsy driver monitoring/weaving alert systems; blind-spot monitoring/warning systems; adaptive cruise control systems; and factory-installed telematics. The studies find that both heavy-duty and light-duty trucks have been increasingly equipped with advanced technologies at a rapid pace during the past three registration years. In particular, 70% or more of heavy-duty trucks and 40% or more of light-duty trucks registered in the past year are equipped with collision-mitigation braking systems and/or lane-keeping assist systems, closing the gap in the percentages between heavy-duty and light-duty trucks.
   
• Being regarded as a logistics solution partner increases satisfaction and fosters loyalty: Since new innovations in the logistics business are receiving increased attention, the study asks truck owners if they consider their truck manufacturer as their logistics solution partner, and only 33% of heavy-duty truck owners and 31% of light-duty truck owners answered that they do. The results indicate that for most truck owners, their truck manufacturer is still just a supplier of trucks, not a business partner who supports them.
   
• When truck owners are highly satisfied, their repurchase intent and loyalty increase: Among truck owners who are highly satisfied (overall satisfaction scores of 700 or higher) with their trucks, 58% of heavy-duty truck owners and 53% of light-duty truck owners consider their truck manufacturer as their logistics partner. In addition, 96% of these heavy-duty truck owners and 95% of these light-duty truck owners indicate they “definitely would” repurchase from the same OEM, suggesting that customer satisfaction correlates with business growth and loyalty.

Study Rankings

Hino ranks highest in customer satisfaction for the 11th consecutive time in the heavy-duty truck segment (594 points) among the four brands included in the heavy-duty study and for the sixth consecutive time in the light-duty truck segment (575) among the four brands included in the light-duty study. Second place is occupied by Isuzu (569) in the heavy-duty truck segment and Toyota (574) in the light-duty truck segment.

The 2019 Japan Heavy-Duty Truck Ownership Satisfaction Study is based on 3,367 records from 2,192 truck owners, and the 2019 Japan Light-Duty Truck Ownership Satisfaction Study is based on 2,653 records from 1,850 truck owners. Fleet owners in each segment evaluated up to two manufacturers. The study was conducted by mail in September-October 2019.

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

 

Security Risk of Vehicle Systems due to Connectivity is of Increasing Concern

2019-11-19

TOKYO: 29 Nov. 2019 — Advanced driver assistance systems (ADAS) have been more frequently installed on new vehicles over the past two years, according to the JD Power Inaugural Japan Tech Experience Index (TXI) Study,^SM released today.

“The study finds again that the installations of ADAS and connectivity features, on which auto manufacturers have focused, as well as owners’ interests in these systems and features, have increased,” said Atsushi Kawahashi, Senior Director of the Automotive Division at JD Power. “On other hand, users have started to feel anxious, something they have never felt before, that the connectivity features might pose a security risk to the vehicle systems. Now, a crucial issue for auto manufacturers is to provide a product and service environment, in which they can increase the “trust” of advanced technologies, by properly meeting consumers’ needs for ADAS and connectivity features and having them use these systems and features.”

Following are some key findings of the study:

• More ADAS have been installed on new vehicles: The study examines installations of 35 features on new vehicles and the owners’ intent to install these features on their next new vehicle. The study finds that ADAS, whose purpose is for security and safety, have been more frequently installed on new vehicles at an increasingly rapid rate since 2017.
   
• Lane-keeping systems have been the most frequently installed: Among the 35 features, the largest increase in installations is for lane departure warning systems (lane keep assist systems), 74% in 2019, up 23 percent points from 51% in 2017. Blind-spot monitoring/warning systems (50%, up 15 percentage points) and low-speed collision mitigation braking systems (63%, up 14 percentage points) follow.
   
• Owners’ Intent to install connectivity has increased: The study finds that owners have become more interested in connectivity/communication service features for their next new vehicle. More than a half of owners (53%) indicate that they would install smartphone/mobile phone paring with the in-vehicle system on their new vehicles. The same percentage is indicated for hands-free phone systems. These percentages have increased by 11 percentage points from 42% in 2017. The second largest increase in interest is for in-vehicle apps/integration functions for navigation apps, 58% in 2019, up 10 percentage points from 2017.
   
• Installation intent of advanced features differs depend on the age group: According to the study, younger owners show higher intent to install communication service or connectivity features, compared with the older age group who indicate higher intent for ADAS for security and safety.
   
• Users are concerned about security risk: The study also asks about possible increasing security risks, including hacking, due to the integration of in-vehicle technologies and systems. Over half of the owners (55%) indicate that they are highly or somewhat concerned, up 14 percentage points from 41% in 2018. This high percentage is primarily driven by smartphone-linked remote control or smartphone mirroring users. This concern is expected to become higher as more vehicle systems or in-vehicle functions are connected to Internet.

The inaugural Japan Tech Experience Index Study examines installations and usage of advanced technologies on new vehicles and the owners’ intents concerning these technologies among new-vehicles purchasers after five to 12 months of ownership. The study is based on 4,194 respondents and was fielded online in August 2019.

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

 

 

Lexus and Toyota Again Rank Highest in Their Respective Segments

2019-10-01

TOKYO: 3 Oct. 2019 — Overall satisfaction with factory- and dealer-installed navigation systems has increased to 600 (on a 1,000-point scale), up 26 points from 2018, according to the JD Power 2019 Japan Navigation Systems Customer Satisfaction Index Study^SM—OEM, released today.

Now in its 12^th year, the study measures satisfaction with factory- and dealer-installed navigation systems. Six factors comprised of 20 attributes are examined (listed in order of importance): navigation function (23%); display screen (19%); audio and video function (18%); ease of use (17%); design and texture (16%); and other functions, apps and services (7%). Satisfaction is calculated on a 1,000-point scale.

“Overall satisfaction has increased considerably in the industry, particularly in display screen and design and texture,” said Atsushi Kawahashi, Senior Director of the Automotive Division at JD Power. “These improvements are driven by manufacturers’ efforts to increase the appeal of new vehicles from a customer’s viewpoint and to improve new-vehicle quality. In recent years, the roles and functions of navigation systems have expanded. New vehicles are more often equipped with communication systems following the CASE[1] trends, becoming connected cars.”

The study finds that, in the luxury segment, larger improvements are seen in the imported brands, indicating the convenience of services and functions installed on connected cars, a focus of the foreign manufacturers, has been increasingly accepted in the Japanese market. On the other hand, satisfaction has increased in navigation function as well as audio and video function for the domestic brands in both the luxury and the mass market segments, suggesting that the convenience of frequently used functions has increased.

“Factory- and dealer-installed navigation systems will evolve to become essentials and lead the CASE trends in the passenger-car market in Japan,” Kawahashi added.

Following are some key findings of the 2019 study:

• Satisfaction achieves 600 points for the first time: Overall navigation system satisfaction has increased to 600 points in 2019, up 26 points from 2018, reaching its highest score since the study was inaugurated.
   
• Satisfaction increases by 26 points for five factors: When looking at the factors, satisfaction has increased only 15 points in other functions, apps and services but by an average of 26 points for the other five factors.
   
• Satisfaction in both segments increases 27 points: By segment, satisfaction for the luxury brands increases 27 points, increasing more than 30 points in display screen and ease of use. Satisfaction for the mass market brands also increases 27 points, and is up 15 points in other functions, apps and services and 27 points in the other factors.

Study Rankings

Among the four brands in the luxury segment, Lexus ranks highest for the eighth consecutive year with a score of 697. Lexus also receives the highest score in all six factors. BMW (631) ranks second and Audi (625) ranks third.

Among the nine mass market brands, Toyota ranks highest for the second consecutive year with a score of 621. Toyota also achieves the highest score in all six factors. Subaru (597) ranks second and Nissan (595) ranks third.

The 2019 Japan Navigation Systems Customer Satisfaction Index Study—OEM is based on responses from 969 luxury vehicle owners and 6,261 mass market vehicle owners who purchased a new vehicle equipped with a factory- or dealer-installed navigation system from April 2018 through March 2019. The study was fielded in July 2019.

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

---

[1] Connected, Autonomous, Shared & Services, Electric

 

Frequency of Purchase Consideration for SUVs Unchanged

2019-09-10

jdp-root

TOKYO: 12 Sept. 2019 — Car shoppers in Japan show a higher interest in safety features in general, while those age 20-39 are more interested in information and communication functions, according to the JD Power 2019 Japan New-Vehicle Intender Study^SM (NVIS), released today.

“Shoppers are consistently more interested in advanced technologies when looking to purchase a new vehicle,” said Koichi Urayama, Senior Director of the Automotive Division at JD Power. “Younger shoppers have a higher interest in information and communication but that growth in interest is still small. It will become increasingly important to provide information about these features and functions, that matches the needs of each customer base.”

Following are key findings of the 2019 study: 

• Growing popularity of SUVs turns sluggish: Among all body types, 35% of new-vehicle shoppers consider SUVs, a slight increase of 1% from 2018, while minivans and mini-cars are each considered by 30% (both percentages are unchanged from 2018). 

• Minivans are still considered by younger groups: By age, 36% of new-vehicle shoppers age 20-39 consider minivans (+2% from 2018), while 28% of those age 40-59 (-3% from 2018) and 20% of those age 60-69 (unchanged from 2018) consider the same. 

• New-vehicle shoppers consult manufacturer or dealership websites: New-vehicle shoppers consult manufacturer or dealership websites most often (35%), followed by internet news or information sites (28%); catalogs or brochures (28%); vehicles on display or test-drive vehicles (22%); and cars seen on the road/parked (21%). 

• Younger shoppers tend to consult their family and friends or users of the model: By age group, 23% of shoppers aged 20-39 refer to opinions from their family, friends or acquaintances, compared with 15% of shoppers aged 50-69. Also, 20% of younger shoppers refer to word of mouth or review sites, compared with 12% of older shoppers. This indicates that the younger shoppers who have not had much experience in purchasing new vehicles give importance to experience or advice from people who have actually driven or ridden in that model. 

• Customer loyalty higher among repeat buyers: All brands in the study have higher customer loyalty among repeat buyers. For example, more than 60% of repeat customers for Toyota, Mercedes-Benz, Audi, BMW and Honda consider the same brand as their current vehicle for the next purchase, indicating higher brand loyalty. Overall customer loyalty has improved since 2018 for MINI, Mazda, and Mercedes-Benz, while decreasing for Lexus, Nissan and Volvo.

The study, now in its 5^th year, includes 10,000 responses and was fielded online in June-July 2019, examines consumer perceptions of vehicles and the purchase behaviors of those who intend to purchase a new vehicle within the next 12 months. The study also measures purchase decision factors when considering a vehicle for purchase, brand recognition, favorability and impression, as well as consumer interest in new technologies.

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

 

Lexus Ranks Highest Overall; Volkswagen is Highest-Ranked Mass Market Brand

2019-09-12

jdp-root

TOKYO: 19 Sept. 2019 — Electric vehicles exceeded the industry average for satisfaction in the fuel economy category for the first time, according to the JD Power 2019 Japan Automotive Performance, Execution and Layout (APEAL) Study^SM, released today.

“Although electric vehicles still have driving range challenges, they have acquired strengths which are comparable with internal-combustion engine vehicles,” said Atsushi Kawahashi, Senior Director of the Automotive Division at JD Power. “If electric vehicles are considered as a realistic option for consumers, the picture of the future automobile market could change drastically.”

Following are some of the key findings of the 2019 study:

• Electric vehicle satisfaction exceeds industry average level in the fuel economy category: Among electric vehicles, satisfaction in the fuel economy category is 644 (on a 1,000-point scale), exceeding the industry average of 636 for the first time. In the fuel economy category, the APEAL score of the driving range between each refueling/recharging attribute (6.07 on a 10-point scale) is still lower than the industry average of 6.50). The score of a vehicle’s fuel economy attribute (6.75) is well above the industry average 6.26. Fuel economy is traditionally an area of weakness for electric vehicles, but the balance of efficiency and driving range is overcoming this weakness. 

• More than half of 58 models improve: The industry average satisfaction index score has increased to 645 in 2019, up 7 points from 2018. Among the 58 models included in both the 2018 and 2019 studies, 37 models have improved in new-vehicle appeal since 2018. Satisfaction also has improved by 6-9 points in all categories, which raises the level of overall new-vehicle appeal. 

• Largest improvement in minivan segment: In the minivan segment, the overall APEAL score has increased by 14 points since 2018 to 658 in 2019, a larger improvement than for any other segment. Among the 10 models in the minivan segment which are included in both the 2018 and 2019 studies, nine models have improved in appeal since 2018. 

• New-vehicle appeal for four German brands exceeds the industry average: The overall APEAL scores of four German brands (Audi, BMW, Mercedes-Benz and Volkswagen) have increased by 14-21 points since 2018. These increases are above the average improvement in the industry (+7, year over year), which indicates these four German brands have made substantially more progress in improving new-vehicle appeal than the industry in general. 

• German brands improve the audio-related attributes in ACEN: Reasons for improvements in new-vehicle appeal differ depending on the brand, but all four German brands have improved in the ACEN category (up 21-43 points, year over year). In particular, satisfaction in audio-related attributes (e.g., quality of sound from speakers, ease of using vehicle’s audio system while driving, attractiveness of audio system display, look and feel of audio controls, and ease of playing external music devices) have notably increased. The results of the four German brands’ efforts to improve these areas are increasingly accepted by users as new vehicle strengths. 

Highest-Ranked Brands 

Lexus ranks highest in overall APEAL with a score of 733. Volkswagen ranks highest in the mass market segment, with a score of 704.

 Segment-Leading Models 

• Mini-car segment: Honda N-BOX
• Compact segment: Mazda CX-3
• Midsize segment: Volkswagen Golf
• Minivan segment: Toyota Alphard

The 2019 Japan APEAL Study is based on responses from 21,728 purchasers of new vehicles in the first two to nine months of ownership. The study was fielded online from May through June 2019. The annual study, now in its ninth year, examines how gratifying a new vehicle is to own and drive. Owners evaluate their new vehicle across 77 attributes, grouped into 10 categories of vehicle performance: exterior; interior; storage and space; audio/communication/entertainment/navigation (ACEN); seats; heating, ventilation and air conditioning (HVAC); driving dynamics (driving performance); engine/transmission; visibility and safety; and fuel economy.

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