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BMW ranks highest among luxury brands in sales satisfaction in India. BMW performs particularly well in the dealer facility, sales initiation and salesperson factors, according to the JD Power Asia Pacific 2013 India Sales Satisfaction Index (SSI) Study released today.
The study, however, says that luxury automakers in India are not doing enough during the sales experience to significantly differentiate themselves from the mass-market automakers.
“With customers paying much more for a luxury vehicle, they likely have higher expectations during the sales process,” said Mohit Arora, executive director, J D Power Asia Pacific. “Even when their expectations are being met, it is surprising that their satisfaction is not significantly higher than mass-market vehicle buyers’ satisfaction.”
The study, which for the first time measures sales satisfaction separately in two vehicle segments—luxury and mass market—examines seven factors that contribute to new-vehicle buyers’ overall satisfaction with their sales experience - delivery process; delivery timing; salesperson; sales initiation dealer facility; paperwork; and deal.
Arora added, “An increase in the number of luxury models available in India, coupled with attractive financial options that enhance affordability, have really helped the luxury market grow. With that growth comes added pressure for the luxury brands to differentiate themselves from the mass market brands.”
The luxury vehicle market in India has grown in recent years, with sales expected to reach 26,000 units in 2013 and increase to 84,000 units by 2020, according to LMC Automotive.
The study draws out some interesting trends. For one, luxury-vehicle buyers are more likely to use the internet during their shopping process, with 34 percent going online to search for vehicle features and specifications, compared with 28 percent of mass market-vehicle buyers. More than two-thirds (68%) of luxury buyers have two or more vehicles in their household. Additionally, 93 percent of luxury-vehicle buyers opt to finance their purchase, compared with 72 percent of mass market-vehicle buyers.
The 2013 India Sales Satisfaction Index (SSI) Study for the luxury brands is based on responses from 253 new-vehicle owners who purchased their vehicle between September 2012 and April 2013. The study was fielded from March to July 2013.
