Category: Japan

Lexus Ranks Highest in Luxury Segment for 13th Consecutive Year; MINI Ranks Highest in Mass Market Segment

 

 

2019-08-01

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TOKYO: 29 Aug. 2019 — Increasing support and communication for customers that have booked appointments effects customer service satisfaction, according to the JD Power 2019 Japan Customer Service Index (CSI) Study,^SM released today.

“More customers like to schedule service systematically,” said Koichi Urayama, Senior Director of the Automotive Division at JD Power. “Dealer staff, including sales and service representatives, need to not only perform follow-up activities to help their customers make smooth service appointments but also enhance the system to meet customers’ demand for early appointments, encouraging them to use the online reservation systems which have not yet been broadly utilized. In addition, it is important to establish a system to communicate with customers efficiently and smoothly at every touchpoint, including explanations about service content and making contact on a regular basis.”

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

• Overall satisfaction decreases: Overall satisfaction has decreased slightly by 3 points to 668 (on a 1,000-point scale) in 2019 from 671 in 2018. Satisfaction among mass market brands declined 3 points to 665, while satisfaction among luxury brands decreased by 3 points to 729. 

• Satisfaction in service initiation deteriorates: Among the five factors, the largest decrease in satisfaction year over year is in service initiation (-6 points).

• Customers are booking appointments sooner: In 2019, more than one-third (37%) of customers indicate that they made an appointment for less than a week ahead, compared with 55% in 2014. On the other hand, 20% of customers indicate that they made an appointment 14 days or more in advance, a gradual increase from 10% in 2014. In particular, the percentage of customers who had their service performed during the morning on weekends/holidays and made an appointment 14 days or more in advance increased to 27% in 2019 from 12% in 2014. However, customers who made an appointment 14 days or more in advance indicate lower satisfaction than customers who made an appointment less than a week ahead, especially driven by the ease of scheduling service visit attribute. 

• Most preferred method of scheduling service is via phone: More than half (56%) of the customers phoned the dealer to make an appointment, while 21% directly contacted the salesperson or service representative; 14% made an appointment when they were contacted by the salesperson/selling dealer; and 4% used the dealer website. However, satisfaction is the lowest among customers who phoned the dealer (653), while customers who directly contacted the salesperson or service representative indicate the highest satisfaction (699).

Study Rankings

Luxury

Among the five luxury brands included in the study, Lexus ranks highest for the 13th consecutive year, with a score of 778—almost 50 points higher than the segment average. Lexus performs particularly well in all five factors. 

Mass Market

Among the 10 mass market brands included in the study, MINI (707) ranks highest for the first time in two years. MINI performs particularly well in the factors of vehicle pick-up; service quality; service representative; and service initiation.

The 2019 Japan Customer Service Index (CSI) Study measures overall satisfaction with after-sales service among new-vehicle owners after 15-50 months of ownership. The study surveys owners who visit an authorized service center for maintenance or repair work and is based on five factors (in order of importance): vehicle pick-up (21%); service representative (21%); service quality (21%); facility (19%); and service initiation (18%). 

The study, now in its 18th year, includes responses from 9,139 respondents who registered their new domestic and import vehicles between April 2015 and March 2018. The online survey was fielded in May and June 2019. Satisfaction is based on the percentage of importance of each of five factors and owners’ evaluation of multiple attributed included within these factors.

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

 

User Friendliness of Safety Features Has Large Impact on Quality and Reliability Ratings of New Vehicles, JD Power Finds                                

 

2019-08-13

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TOKYO: 21 Aug. 2019 — Making new safety features more user-friendly effects overall initial quality, as consumers indicate they are more interested than ever in purchasing vehicles with such features, according to the JD Power 2019 Japan Initial Quality Study^SM (IQS), released today.

“As additional safety features and new technologies are increasingly offered on new vehicles, consumers’ expectations and interest in them increases,” said Atsushi Kawahashi, Senior Director of the Automotive Division at JD Power. “Owner ratings on vehicle quality and reliability increases when new vehicles are equipped with such features and technologies. However, when owners have a problem with usability, ratings considerably decrease and may affect repurchase intentions of the brand. Improving user friendliness will not only increase owners’ satisfaction but will also reinforce their trust in such safety features and new technologies, ultimately improving their perceptions of their new vehicle.”

Following are key findings of the 2019 study: 

Overall initial quality in 2019 is on par with 2018, while some brands have fewer problems than in the past. 

• Initial quality in 2019 remains flat compared with 2018: New-vehicle quality in 2019 averages 66 PP100 (problems per 100 vehicles), one problem fewer than 67 PP100 in 2018.  A lower PP100 indicates higher initial vehicle quality performance. There are no significant changes year over year in PP100 for individual problem areas measured in the study. 

• Design-related problems have decreased in the midsize segment: The number of problems in this segment has decreased to 75 PP100 in 2019 from 79 PP100 in 2018. Design related-problems, including “difficult to use” or “difficult to understand how to use,” have decreased year over year. 

• Fewer than half of brands have improved in 2019: Among the 15 brands included in both the 2018 and 2019 studies, six brands have improved in initial quality, while eight brands have worsened. 

• Two Daihatsu models have fewer problems than in the past: In 2019, Daihatsu Cast and Daihatsu Mira Tocot have 32 PP100 each, the fewest number of problems reported since the Japan IQS was launched in 2014 in current design.

More new vehicles are equipped with safety features and new technologies in response to consumer needs, but vehicle ratings decrease when owners experience a problem. 

• Four safety features are widespread in new vehicles: More and more vehicles are being equipped with the following four safety features: collision avoidance/alert system; lane departure warning system (lane keep assist system); park assist/backup warning system; and blind-spot monitoring/warning system. 

• Collision avoidance/alert system is the most frequently installed feature on new vehicles: Among the four above listed safety features, the most frequently installed is the collision avoidance/alert system at 77.5%. There is a notable increase in incidence of lane departure warning system installation, to 69.9% in 2019 from 48.5% in 2017 (up 21.4 percentage points), followed by park assist/backup warning system at 65.0% (up 14.5 percentage points) and blind-spot monitoring/warning system, 47.9% (up 13.6 percentage points). 

• Consumer desire for safety features increases: The percentage of consumers who indicate they want a new vehicle to be equipped with the latest safety features, despite an attendant increase in vehicle price, has risen to 69.3% in 2019 from 65.0% in 2017. 

• Ratings for safety features and new technologies decrease when owners experience a problem: In terms of quality and reliability, owners’ rate new vehicles higher when any of the aforementioned safety features are installed than new vehicles without such features. However, when owners experience a problem with the usability of these features, their ratings are lower than for new vehicles without these safety features. The ratings for new vehicles with a collision avoidance/alert system averages 7.75 points (on a 10-point scale), compared with 7.17 points for new vehicles without such a system. However, among owners who have experienced a problem with the operability of their system, ratings decline to 6.54 points, and repurchase intention drops to 75.4%, compared with the industry average of 81.0%.

Highest-Ranked Brands

Daihatsu (58 PP100) ranks highest overall in initial vehicle quality. Lexus (60 PP100) ranks highest in the luxury segment. 

Segment-Leading Models[1]

• Mini-Car segment: Daihatsu Cast and Daihatsu Mira Tocoto rank highest in a tie

• Compact Car segment: Toyota AQUA

• Midsize Car segment: Nissan Leaf

• Minivan segment: Honda STEP WGN

The 2019 Japan Initial Quality Study is based on responses from 21,728 purchasers of new vehicles in the first two to nine months of ownership. The online survey was fielded from May through June 2019. The study, now in its ninth year, measures new-vehicle quality in the first two to nine months of ownership. Vehicle quality is evaluated by owners across 233 problem areas in eight categories: vehicle exterior; driving experience; features/ controls/ displays; audio/ communication/ entertainment/ navigation (ACEN); seats; heating, ventilation and air conditioning (HVAC); vehicle interior; and engine/ transmission. All problems are summarized as the number of reported problems per 100 vehicles (PP100), with lower scores reflecting a higher quality performance.

Media Relations Contacts

Kumi Kitami; Tokyo; 81-3-4570-8410; [email protected]

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

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

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[1]For large segment, no official rankings are published due to an insufficient number of models.

 

 

Presenting Customers with Best Purchase Options During Vehicle Sales Process Increases Satisfaction

2019-08-13

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TOKYO: 22 Aug. 2019 — It is becoming more important that vehicle sales staff present customers with various purchasing and financing options as prices for vehicles continues to increase, according to the JD Power 2019 Japan Sales Satisfaction Index (SSI) Study,^SM released today. Overall, customer satisfaction with the vehicle sales process has increased since 2018, particularly in factors relating to the facility and working out the deal.

“Customer satisfaction with sales staff at new-vehicle dealerships has increased this year. However, because of the rise in new-vehicle prices, satisfaction with contracts and prices has slowed, indicating that dealers must focus more attention in this area to provide customers with satisfying options,” said Koichi Urayama, Senior Director of the Automotive Division at JD Power. “More customers are using residual value financing at the dealerships, and although their satisfaction with payment options has increased, it will become increasingly important to offer them the most advantageous payment and insurance options to further improve their satisfaction.”

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

• Satisfaction continues to increase: Overall sales satisfaction averages 678 points (on a 1,000-point scale) in 2019, 7 points higher than last year. 

• Both mass market and luxury brands have improved: Satisfaction with mass market brands averages 676 points (+8 points from 2018), while satisfaction with luxury brands averages 728 points (+11 points from 2018). 

• The largest improvement is in the dealership facility: By factor, the largest improvement is in the facility (up 12 points in 2019 to 682), particularly in the ratings for appearance (+0.14 points on a 10-point scale) and the ease of looking at/condition of dealer’s displayed car (+0.14 points). The improvement in satisfaction of the ease of looking at/condition of dealer’s displayed car is larger in the mass market segment (+0.15 points) than in the luxury segment (+0.09 points).

• More customers are using residual value financing: The percentage of customers who used financing/leasing through their dealer has increased slightly, to 31% in 2019 from 30% in 2018. Among these customers, 67% used residual value financing, compared with 62% in 2018. Sales satisfaction among customers who used residual value financing is 15 points higher than among customers who used traditional financing (704 points vs. 689 points, respectively). 

• Financing satisfaction varies depending on the age group: Among customers in their 40s, sales satisfaction is 16 points higher among those who used financing/leasing through their dealer (705 points) vs. those who used outside sources (689 points). However, among customers in their 20s and 30s, satisfaction is 9 points lower among those who used financing/leasing through their dealer (681 points) vs. those who used outside sources (690 points). 

• Whether the salesperson proposed auto insurance impacts customer satisfaction: Satisfaction is 50 points higher among customers to whom their salesperson suggested the consideration and purchase of auto insurance (voluntary insurance) or a review of their current auto insurance and switching their insurance at the dealer than among customers who received no such suggestions (698 points vs. 648 points, respectively). Satisfaction further increases to 707 points when customers actually purchased new auto insurance at the dealer.

Study Rankings

Luxury

Among the five luxury brands included in the study, Audi (747) ranks highest for the first time since the study’s inception. Audi performs particularly well in three factors: salesperson; working out the deal; and delivery.

Mass Market

Among the 10 mass market brands included in the study, Volkswagen (747) ranks highest for the third consecutive year. Volkswagen performs particularly well in all four factors: salesperson; working out the deal; facility; and delivery.

The 2019 Japan Sales Satisfaction Index (SSI) Study measures customer satisfaction with the sales process at automotive dealerships based on four factors that are comprised of 20 attributes (in order of importance): salesperson (34%); working out the deal (26%); facility (21%); and delivery (20%). The study provides auto manufacturers with insights into customer satisfaction with the vehicle sales process at dealerships.

The study, now in its 18^th year, includes responses from 7,213 domestic and import vehicle owners who purchased a vehicle between April 2018 and March 2019, after two to 12 months of ownership. The online survey was fielded in May and June 2019. Satisfaction is measured on a 1,000-point index score and is based on the percentage of importance of each of four factors and owners’ evaluations of multiple attributes included within these factors.

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

 

Launching New Brand to Showcase Global Growth Across Multiple Industries

2019-03-29

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Kiichi Umezawa to Head Global Business Intelligence at JD Power Japan

COSTA MESA, Calif.: 1 April 2019 — JD Power, the global leader in data analytics and consumer insights, has rebranded its service industries practices in banking and credit cards; wealth and lending; insurance; technology, media and telecom; utilities; travel and hospitality; and health. The new JD Power Global Business Intelligence (GBI) division harnesses the company’s proven “Voice of the Customer” research to deliver deep market intelligence across an ever-growing number of industries and product categories. It sits alongside the JD Power Global Automotive practice as a standalone business unit.

Financial services veteran Kiichi Umezawa has joined JD Power and will be leading the company’s Japan GBI unit. He will report to JD Power Senior Vice President and General Manager Keith Webster. Prior to joining JD Power, Umezawa held senior management roles with UBS, Goldman Sachs, Bank of Japan and the Financial Services Agency.

“Today, the world’s leading businesses across more than a dozen different industries rely on JD Power data, research and insights to guide their customer-facing strategies, and consumers around the world look to JD Power ratings as the undisputed mark of quality,” said Dave Habiger, President and CEO of JD Power. “By tapping the collective power of our insights in financial services, insurance, tech, utilities, travel and health, we will be even better-positioned to deliver the deep industry expertise, empirical evidence, and algorithmic forecasting models the world’s biggest businesses need to overcome their toughest challenges. I look forward to working closely with Kiichi and his incredible team in Japan to elevate the insights we deliver to business leaders to help them compete on the local and global stages.”

Working both within and across industry verticals, the GBI unit is focused on developing incisive benchmark studies that capture the full spectrum of customer experience; proprietary data, analytics and predictive models that forecast consumer trends; and tailored advice to global business leaders. The new division will also leverage “Voice of the Customer” insights to produce critical benchmark data sets for evaluating executive compensation, global competition and modernization of financial infrastructure in Japan. By drawing on a global database of customer experience and sentiment metrics, JD Power GBI will provide an unbiased barometer of public opinion on a variety of key business issues.

“Japanese businesses are going through an unprecedented period of regulatory, technological and geopolitical change, making it more important than ever for business leaders to build strategies rooted in quantitative evidence and deep market intelligence,” Umezawa said. “I am honored to work with a firm that is so well known for its deep analytic capabilities and unbiased perspective, and I look forward to leveraging that position to help Japanese businesses thrive in the global marketplace.”

 

Sales Operations a Key Factor in Building Relationships with Truck Owners

2019-01-11

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TOKYO: 18 Jan. 2019 — Strong ties with customers who want their truck manufacturer to be a logistics business partner is an important component of customer service, according to the JD Power 2019 Japan Heavy-Duty Truck Ownership Satisfaction Study^SM and the JD Power 2019 Japan Light-Duty Truck Ownership Satisfaction Study^SM, both released today.

The annual studies measure overall satisfaction with heavy- and light-duty truck manufacturers and their respective authorized truck dealers among commercial fleet owners, including managers of truck freight companies. Satisfaction is determined by examining owners’ evaluations of 10 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.

“In a truck market where market share has been rigid among major manufacturers, efforts aimed at building stronger relationships with customers are necessary,” said Yuji Sasaki, Director of the Automotive Division at JD Power Japan. “To realize this, it is important to become a logistics solution partner of customers, not just a vehicle manufacturer. It is becoming increasingly important for sales representatives to understand their customers’ needs and make efforts to provide appropriate solutions.

Following are some key findings of the study:

• Truck owners looking for more: One- third (33%) of truck owners consider the truck manufacturer they use as a logistics solution partner, not just a vehicle supplier. This percentage rises to 58% of owners who are highly satisfied (overall satisfaction scores of 700 or higher) with their vehicles. Among owners who consider the truck manufacturer to be their logistics partner, 95% say they “definitely would” repurchase from the same OEM. Focusing on developing deeper relationships is key to building a solid business foundation for customer retention.

• Sales operation carries weight: The sales operation has a great influence on customer perceptions of the manufacturer being a logistics business partner. Those among who showed high satisfaction score with sales (700 or higher), 53% of customers say the truck manufacturer to be their logistics partner. However, this figure drops down to 12% among those who dissatisfied with sales (less than 400). 

• Heavy-duty after-sales satisfaction declines: Service satisfaction among owners of heavy-duty trucks decreased to 584, from 598 last year. The decline in satisfaction among owners who took their vehicle to the dealer for repair is substantial (26 points lower than last year). Additionally, fewer owners were able to have their truck serviced on their desired day, compared with last year (77% vs. 83%, respectively).

  Study Rankings 

  Hino ranks highest in customer satisfaction for the 10th consecutive year in the heavy-duty truck segment (590) and for the fifth consecutive year in the light-duty truck segment (575). Hino is followed by Isuzu (564) in the heavy-duty truck segment and Toyota (567) in the light-duty truck segment.

  The 2019 Japan Heavy-Duty Truck Ownership Satisfaction Study is based on 3,550 records from 2,303 truck owners, and the 2019 Japan Light-Duty Truck Ownership Satisfaction Study is based on 2,825 records from 1,945 truck owners. Fleet owners in each segment evaluated up to two manufacturers. The mail survey was conducted from September through October 2018.

 

JD Power 2018 Japan Navigation Systems Customer Satisfaction Index Study- Aftermarket –

2018-10-25

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Enhancement of Smartphone Connections, Audio and Video Functions Are Key to Increasing Customer Satisfaction, JD Power Finds

 

Alpine Ranks Highest among In-Dash Aftermarket Navigation Systems

 

TOKYO: 26 Oct. 2018 — Understanding customers’ needs and developing products that meet their high expectations are crucial, according to the JD Power 2018 Japan Navigation Systems Customer Satisfaction Index Study^SM—Aftermarket, released today.

 

Now in its 11th year, the study measures customer satisfaction with aftermarket in-dash vehicle navigation systems. The redesigned study adds two new factors relating to design elements and connectivity functions, bringing the number of examined factors to six (listed in order of importance): navigation function (27%); audio and video function (19%); display screen (19%); design and texture (17%); ease of use (14%); and other functions, apps and services (5%). Satisfaction is calculated on a 1,000-point scale.

 

“Customers who purchase aftermarket navigation systems tend to have stronger interest in navigation system and higher expectations than those who use factory- and dealer-installed navigation systems,” said Yuji Sasaki, Director of the Automotive Division at JD Power. “It is crucial to accurately understand a customer’s needs and to offer products with functions and performance that meet their desires. Manufacturers of aftermarket navigation systems should further improve and enhance not only the basic navigation function, but also the smartphone connections and audio and video functions.”

 

Following are some of the key findings of the study:

 

• Customer expectations of aftermarket navigation system are higher than factory- and dealer -installed navigations: The study also examines purchasing behavior and future intentions and finds 56% of aftermarket navigation system customers place importance on navigation function, while the percentage drops to 39% of OEM navigation system users. The percentages of customers who place importance on audio and video function are 41% of aftermarket navigation system customers and 22% of dealer-installed navigation system users.

   

• Aftermarket navigation system customers more frequently use smartphone connections than factory- and dealer -installed navigation customers: More than half (56%) of aftermarket navigation system customers use smartphone connections, compared with 52% of OEM navigation system users. Additionally, the study finds that aftermarket navigation system customers more frequently transfer search data for destinations from their smartphones to their navigation systems or use audio- or video-related applications on their navigation systems than OEM navigation system users.

   

  * The data above is calculated based on respondents who purchased aftermarket or OEM navigation systems in the year.

   

Study Rankings

 

Alpine ranks highest, with a score of 666. Alpine performs above the industry average in all six factors and particularly well in display screen and design and texture. Alpine is followed by Pioneer (611) and Panasonic (603).

 

The 2018 Japan Navigation Systems Customer Satisfaction Index Study—Aftermarket is based on responses from 2,105 vehicle owners who purchased an aftermarket navigation system from April 2016 through March 2018. The survey was conducted via internet and was fielded in July 2018.

 

2018 Japan Navigation Systems Customer Satisfaction Index Study -OEM-

2018-10-03

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Manufacturer Focus on Content Creation and Improved Voice Operation in Vehicle Navigation Systems Key to Increased Use of Connectivity Functions, JD Power Finds

TOKYO: 5 Oct. 2018 — Improvement in performance and operability of navigation system voice operation is key to customer satisfaction, according to the JD Power 2018 Japan Navigation Systems Customer Satisfaction Index Study^SM—OEM, released today.

Now in its 11th year, the study measures satisfaction with factory- and dealer-installed navigation systems. The redesigned study adds two new factors relating to design elements and connectivity functions, bringing the number of examined factors to six (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 (6%). Satisfaction is calculated on a 1,000-point scale.

“A navigation system significantly improves a vehicle’s appeal, generating new values by providing owners with additional connectivity functions and services,” said Yuji Sasaki, Director of the Automotive Division at JD Power. “As a hi-tech environment, it is necessary that new navigation system features are being created and ongoing content creation and functions should become a focus for manufacturers. Additionally, as navigation systems become increasingly sophisticated, it is important they also channel energy in keeping these upgrades user-friendly and intuitive.”

 

Following are some key findings of the study:

• Availability of telematics services or smartphone connections increases customer satisfaction: Every year, an increasing number of vehicle navigation systems are equipped with connectivity functions, such as telematics services and smartphone connections. While overall navigation system satisfaction averages 574 points this year, among customers who use telematics services or smartphone connections, satisfaction is 38 points higher, averaging 612 points. This suggests that a focus on these areas is key to improving customer satisfaction.
• Manufacturers should communicate advantages of using new content and features: 68% of the navigation systems are connected to communication devices, such as on-board Data Communication Modules (DCM) and smartphones. However, because only 27% of vehicle owners use these telematics services or smartphone connections, which need a connection to the Internet, it indicates that many vehicle owners only use the hands-free phone function or play music stored in their smartphone. This suggests that customers are not using the connectivity functions or services in their vehicle or that the advantages of such functions have not been clearly communicated to vehicle owners. To establish a competitive advantage, it is important for manufacturers to continue efforts toward the development of connectivity functions and services that increase the likelihood that customers will use them, and thereby increasing the appeal of their models in the marketplace.

• Customers are interested in and expect voice operation: The study also examines the use of navigation system voice operation (either a voice recognition feature or via an operator). Only 13% of owners use the voice operation function to operate their navigation system. However, among customers who want to continue to use their on-board navigation system, 26% cite voice operation as the most preferred operation. This suggests high customer interest and expectations to operate a navigation system through voice.

•  Improvement in performance and operability of voice operation is imperative: Improvement in performance and operability of voice operation are of high importance. For example, approximately 30% of owners complain about or report problems with traditional modes of operation, such as the use of touchscreens or controllers, and the proportion rises to 55% for voice operation. Among owners who use the voice operation function, 32% say that they gave up using this function at least once of every two attempts because of low performance.

•  The experience of problems with voice operation strongly correlates with satisfaction: The study finds that the correlation between complaints or experiencing problems and customer satisfaction is higher for voice operation than for traditional operations, such as the use of touchscreens or controllers. This suggests that improving this function is important for increasing customer satisfaction.

Study Rankings

 Luxury Segment: Lexus ranks highest with a score of 677. Lexus performs above the industry average in all six factors, and particularly well in navigation function and ease of use. Lexus is followed by BMW (602) and Audi (601).

 Mass Market Segment: Toyota ranks highest with a score of 592. Toyota performs particularly well in navigation function and other functions, and in apps and services, while the highest levels of satisfaction are in audio and video function and ease of use. Toyota is followed by Volkswagen (583) and Subaru (576).

 

The 2018 Japan Navigation Systems Customer Satisfaction Index Study—OEM is based on responses from 966 luxury vehicle owners and 6,234 mass market vehicle owners who purchased a new vehicle equipped with a factory- or dealer-installed navigation system from April 2017 through March 2018. The survey was conducted via internet and was fielded in July 2018.

 

JD Power 2018 Japan Vehicle Dependability Study（VDS）

2018-10-19

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Vehicle Dependability in Japan Remains Stagnant, Manufacturers Must Improve Durability,

JD Power Finds

 

Lexus Ranks Highest among All Brands

 

TOKYO: 25 Oct. 2018 — Overall, the number of reported problems is almost the same as in 2017, according to the JD Power 2018 Japan Vehicle Dependability Study^SM (VDS), released today.

 

The VDS is conducted globally and serves as the industry benchmark for vehicle dependability. The Japan study, now in its fourth year, measures problems experienced during the past 12 months by original owners of vehicles after 37 to 54 months of ownership. The study examines 177 problem symptoms across eight categories: vehicle exterior; driving experience; features/ controls/ displays (FCD); audio/ communication/ entertainment/ navigation (ACEN); seats; heating, ventilation and air conditioning (HVAC); vehicle interior; and engine/ transmission. Overall dependability is determined by the number of problems reported per 100 vehicles (PP100), with a lower score reflecting higher quality. The overall industry average increases by 1 PP100 to 75 PP100 and remains at the same level as in 2017.

 

“Higher repurchase intent is seen for Lexus and Toyota, which rank highest and second highest among all brands, where 88% and 85%, respectively, say that they ‘definitely would’ or ‘probably would’ repurchase the same brand,” said Atsushi Kawahashi, Senior Director of the Automotive Division at JD Power, Tokyo. “This indicates that there is a correlation between experience of problems and repurchase intent. Auto manufacturers need to work on further improvement in durability to increase owners’ brand loyalty, as customers are keeping their vehicles for longer periods of time.”

 

Following are some of the key findings of the study:

 

• Exterior, interior, engine/ transmission and ACEN remain the most problematic: The vehicle exterior (14.5 PP100), vehicle interior (14.2 PP100), engine/ transmission (11.8 PP100) and ACEN (11.6 PP100) categories remain the most problematic areas, as in 2017, and account for 70% of the reported problems.

   

• Three of the five most frequently reported problem symptoms are ACEN-related: The most frequently reported problem symptom is air vents smell unpleasant (3.3 PP100), followed by navigation system—difficult to operate (2.1 PP100); brakes are noisy (2.0 PP100); built-in Bluetooth mobile phone/ device has frequent pairing/ connectivity issues (1.9 PP100); and navigation system—inaccurate (1.9 PP100). Three of the five problem symptoms are in the ACEN category. Navigation systems and Bluetooth are not basic features of a vehicle. However, more new vehicles are equipped with these features and they are essential for making a vehicle comfortable and convenient. For this reason, these results cannot be overlooked.

   

• Dependability improves in the minivan segment, while deteriorating in the midsize segment: The minivan segment shows the greatest decrease in problems (-6 PP100 year over year). Dependability improves in the engine/ transmission, FCD and ACEN categories from 2017. In contrast, the largest increase in problems is in the midsize segment (+14 PP100 year over year), as dependability deteriorates in the ACEN, vehicle interior, vehicle exterior and FCD categories.

   

• There is a correlation between mileage and the number of reported problems: The study finds that the number of reported problems rises as mileage increases. Dependability averages 59 PP100 for vehicles that travel less than 10,000 kilometers, while dependability is 133 PP100 for vehicles that travel 70,000 kilometers or more, a 74 PP100 gap. Between vehicles that travel less than10,000 kilometers and those that travel 70,000 kilometers or more, the largest gap is in the vehicle interior category (a gap of 21.1 PP100), followed by the vehicle exterior category (a gap of 15.9 PP100). By segment, the largest gap is in the compact segment (3.1 times the number of reported problems), followed by the mini-car segment (2.4 times).

   

• Shift lever knob and exterior light problems have increased: In the vehicle interior category, the largest increase in problems is in shift lever knob—excessively worn/ faded, followed by materials scuff/ soil easily; door panels—excessively worn/ faded; carpet—excessively worn/ faded; and instrument panel/ dashboard—squeak/ rattle/ other noise. In the vehicle exterior category, the largest increase in problems is in exterior light—bulb failed, followed by excessive road noise; exterior light—condensation/ discoloration/ clouding; paint imperfection; and exterior rust/ corrosion.

Study Rankings

 

Lexus ranks highest among brands, with a score of 51 PP100. Lexus is followed by Toyota (61 PP100) in second place and Daihatsu (73 PP100) in third place. Lexus also ranks highest in the luxury segment and Toyota ranks highest in the mass market segment.

 

Highest-Ranked Models

 

Honda N-ONE ranks highest in the mini-car segment with a score of 55 PP100, followed by Daihatsu Move (62 PP100) in second place and Nissan Moco (63 PP100) in third place.

 

Toyota Vitz ranks highest in the compact segment with a score of 52 PP100, followed by Toyota Ractis (54 PP100) in second place and Toyota AQUA (56 PP100) in third place.

 

Toyota SAI ranks highest in the midsize segment with a score of 38 PP100, followed by Toyota Corolla (50 PP100) in second place and Nissan Leaf (66 PP100) in third place.

 

Toyota Esquire ranks highest in the minivan segment with a score of 45 PP100, followed by Toyota WISH (61 PP100) in second place and Toyota Noah (64 PP100) in third place.

 

* The overall industry average for vehicle dependability is 75 PP100.

* Models in the large segment are not included in the rankings due to insufficient market shares.

 

The 2018 Japan Vehicle Dependability Study is based on responses from 20,835 purchasers of new vehicles in the first 37 to 54 months of ownership and includes 16 automotive brands and 116 models. The study was conducted via Internet from June through July 2018.

 

2018 Japan New Vehicle Intender Study（NVIS）

2018-09-05

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Among New-vehicle Shoppers, SUVs Are More Frequently Considered for Body Type and Hybrids for Engine Type,

JD Power Finds

 

SUVs Continue to Be Extremely Popular Body Types

 

TOKYO: 12 Sept. 2018 — SUVs are gaining in popularity, even among shoppers who are considering minivans for aesthetic reasons, while other shoppers are considering hybrids for economic reasons, according to the JD Power 2018 Japan New-Vehicle Intender Study^SM (NVIS), released today.

 

The study, now in its fourth year, examines consumer perceptions of vehicles and the purchase behaviors of those who intend to purchase a new or used 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.

 

“The results of the 2018 study show a continuing increase in the percentage of new-vehicle shoppers who consider SUVs,” said Koichi Urayama, Director of the Automotive Division at JD Power. “Moreover, the study shows that more shoppers who consider other body types are including SUVs in their consideration set. This suggests that it has become very important to support shoppers—in terms of the way they intend to use the vehicle—in their choice of a new vehicle that will be best for them by understanding their needs and comparing information about competitors’ models.”

 

Following are some of the key findings of the study:

 

• SUV demand continues to rise: Among all body types, SUV is the most frequently cited body type by new-vehicle shoppers for their consideration and is the only body type for which the percentage of shoppers has increased for three consecutive years. Additionally, new-vehicle shoppers who are considering other body types are increasingly considering SUVs. For instance, the percentage of shoppers who consider sedans and SUVs increases to 36% in 2018 from 29% in 2015, with increases of 6 percentage points each among shoppers whose first consideration are minivans or wagons during the same period.

 

• Hybrid vehicles are increasingly popular: More than half of shoppers who consider engine types other than gasoline-fueled vehicles prefer hybrids (57%), followed by plug-in hybrids (PHVs) (20%); diesel-fueled vehicles (18%); electric vehicles (EVs) (15%); and fuel cell vehicles (FCVs) (7%). Overall, from 2015 to 2018, the percentage of people considering hybrids people has increased the most among all engine types, while the percentages of PHVs and EVs have increased by six percentage points each.

 

• Customer loyalty improving: More than half (60%) of repeat customers for Toyota, Mercedes-Benz and BMW consider a new vehicle from the same manufacturer for their next purchase. Among major brands, customer loyalty has substantially improved from 2017 for Volvo, Volkswagen, Audi, Mitsubishi and Honda, while decreasing for MINI, Mazda and Subaru.

 

The 2018 Japan New-Vehicle Intender Study is based on 10,000 responses. The online survey was conducted from June through July 2018.

 

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2018 Japan Automotive Performance, Execution and Layout (APEAL) Study

2018-09-13

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TOKYO: 20 Sept. 2018 — While overall new-vehicle appeal in Japan remains the same as in 2017, according to the JD Power 2018 Japan Automotive Performance, Execution and Layout (APEAL) Study^SM released today, APEAL scores for motor-driven vehicles such as plug-in hybrids and electrical vehicles have increased, compared to scores for fuel-powered vehicles.

 

The study finds that “electric powertrain vehicles[1]” have a greater appeal for new-vehicle owners than do “internal combustion engine (ICE) vehicles” such as gasoline or diesel-fueled vehicles and hybrids.

The overall APEAL score averages 676 points for electric powertrain vehicles, while the score averages 636 points for ICE vehicles, representing a 40-point gap in score between vehicle types. Additionally, electric powertrain vehicles outperform ICE vehicles in engine/ transmission (a 107-point gap); fuel economy (an 85-point gap); and driving dynamics (a 44-point gap), which are typical advantages for electric powertrain vehicles.

Those who owned a hybrid but purchased a plug-in hybrid or electric vehicle as a replacement are less satisfied with fuel economy than are owners of gasoline- or diesel-fueled vehicles, a 42-point gap in score. The study also finds that the proportion of those who owned a hybrid when they purchased a plug-in hybrid or electric vehicle as a replacement to the household has increased to 10% in 2018 from 6% last year.

 

“As the domestic sales share of electric powertrain vehicles has grown, more customers have purchased such a vehicle as a replacement, i.e., from a hybrid to a plug-in hybrid.” said Atsushi Kawahashi, Senior Director of the Automotive Division at JD Power, Tokyo. “For such users, it is more difficult for them to perceive the good fuel economy of the electric powertrain vehicles, an advantage of those vehicles, than for owners who used a gasoline- or diesel-fueled vehicle. It will become more important for manufacturers to show consumers types of new-vehicle appeal other than fuel efficiency in order to differentiate their vehicles from those of their competitors.”

 

The overall APEAL score in 2018 increases from 2017 by just 1 point to 638 (on a 1,000-point scale). Among all categories, the largest improvement is in engine/ transmission (638 points, up 4 points from 2017), followed by 3-point increases in driving dynamics (649); visibility and safety (646); seats (622); and HVAC (621) and a 2-point increase in storage and space (618). However, the APEAL score has decreased in the fuel economy category by 4 points (627).

By vehicle segment, the overall APEAL scores have increased since 2017 in the mini-car and large segments, by 5 points and 1 point, respectively. In the mini-car segment, the largest improvement is in engine/ transmission, increasing by 10 points to 593, while visibility and safety in the large segment has increased by 7 points to 719. However, the overall APEAL scores have decreased by 5 points in the midsize segment and by 1 point in the minivan segment as you will see detailed below.

Key Findings by Segment

 

• Mini-car segment: The overall APEAL score increases by 5 points year over year to 607 in 2018. Satisfaction has improved across all categories, particularly in engine/ transmission (up 10 points) and seats and driving dynamics (up 8 points each).

   

• Compact segment: The overall APEAL score remains at 624 points, the same as in 2017. Satisfaction has improved by 4 points in visibility and safety (627), while satisfaction has slightly decreased in six categories, including interior (down 5 points to 607).

   

• Midsize segment: The overall APEAL score deceases this year by 5 points from last year to 669. There have been no improved scores year over year in any category. In the engine/ transmission category, satisfaction remains at 690 points, the same as in 2017.  Conversely, satisfaction has decreased by a significant 23 points in fuel economy (653).

   

• Minivan segment: The overall APEAL score decreases by 1 point from last year to 644 in 2018. Satisfaction has improved by 2 points in visibility and safety (657) and by 1 point in storage and space (650) and in seats (638). However, satisfaction has decreased in five categories, the largest of which is a 10-point decline in fuel economy (594).

   

• Large segment: The overall APEAL score increases year over year by 1 point to 714 in 2018. Satisfaction has improved in six categories, the largest of which is a 7-point increase in visibility and safety (719). From 2017, satisfaction has decreased by 1 point each in exterior (750) and interior (718) but remains the same in ACEN (667) and engine/ transmission (726).

Highest-Ranked Models and Brands

 

Honda N-BOX ranks highest in the mini-car segment, followed by Suzuki Spacia in second place and Daihatsu Cast and Daihatsu Move Canbus tie for third place.

 

Toyota AQUA ranks highest in the compact segment, followed by Mazda CX-3 in second place and Mazda Demio in third place.

 

Honda Civic ranks highest in the midsize segment, followed by Mazda CX-5 in second place and Subaru Levorg in third place.

 

Toyota Alphard ranks highest in the minivan segment, followed by Toyota Vellfire in second place and

Honda Step WGN in third place.

 

Lexus ranks highest among brands, with an overall APEAL score of 742, followed by Volvo (732) and BMW (716).

 

The 2018 Japan APEAL Study is based on responses from 22,387 purchasers of new vehicles in the first

two to nine months of ownership. The study was fielded from May through June 2018. The study, now in its eighth 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.

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