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Customer Satisfaction with New-Vehicle Design and Performance Rises for Second Year in Row in India

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Four Maruti Suzuki Models Rank Highest in Their Respective Segments, While Models from Honda and Toyota Each Rank Highest in One Segment

Customer satisfaction with new-vehicle design and performance has increased for a second consecutive year in India, according to the J.D. Power Asia Pacific 2009 India Automotive Performance, Execution and Layout (APEAL) StudySM released today.

In 2009, satisfaction with new-vehicle design and performance in the automotive industry in India averages 807 on a 1,000-point scale, an increase of 20 points from 2008.

“The overall improvement in customer satisfaction in 2009 is primarily due to several new-model launches, as well as to redesigns of existing models,” said Mohit Arora, senior director at J.D. Power Asia Pacific, Singapore.

 

Now in its 11th year, the study is an owner-reported measure of what gratifies owners in India with the design, features, layout and performance of their new vehicles. Ten performance categories contribute to overall APEAL scores: vehicle exterior; vehicle interior; storage and space; audio/entertainment/navigation; seats; heating, ventilation and air conditioning (HVAC); driving dynamics; engine/transmission; visibility and driving safety; and fuel economy. A higher APEAL score indicates greater overall customer satisfaction with the new vehicle.

Industry Findings

Among owners who report that they did not experience any problems with their vehicle, APEAL scores average 79 index points higher than among those of customers who report three or more problems with their vehicle.

Furthermore, owners who report being highly satisfied with their vehicle have significantly higher advocacy and loyalty intention rates, compared with those with lower levels of satisfaction. Among owners with the highest levels of satisfaction (scores averaging above 865), 89 percent say they “definitely would” recommend their vehicle model to others, and 75 percent say they “definitely would” repurchase the same brand. When satisfaction drops below an average of 753, these levels decline to 50 percent and 37 percent, respectively.

“In the coming months and years, we are likely to see a number of new-model launches in the auto industry in India,” said Arora. “With an increasingly competitive marketplace and more demanding customers, a challenge for the manufacturers lies in creating models that differentiate themselves from their competitors, not only in terms of vehicle quality, but also in strong vehicle appeal—both of which together are key drivers of customer loyalty and advocacy.”

Model Results by Segment

Maruti Wagon R ranks highest for a second consecutive year in the compact car segment with a score of 820, and performs particularly well in the storage and space; audio/entertainment/navigation; visibility and driving safety; and fuel economy categories. The Hyundai i10 (813) and Maruti Zen Estilo (807) follow in the compact car segment rankings.

The new Maruti Ritz ranks highest in the premium compact segment with a score of 829 and performs particularly well in seven of the 10 categories: vehicle interior; seats; HVAC; driving dynamics; visibility and driving safety; engine/transmission; and fuel economy. Following closely in the premium compact segment rankings is the Maruti Swift (825), which performs particularly well in the audio/entertainment/navigation and engine/transmission categories. The new Hyundai i20 ranks third in the segment, performing well in vehicle exterior and storage and space.

In the entry midsize segment, the Maruti Swift DZire ranks highest with a score of 844 and performs particularly well in all 10 categories.

The Maruti SX4 ranks highest in the midsize segment for a third consecutive year with a score of 833. The SX4 performs particularly well in six categories: storage and space; audio/entertainment/navigation; seats; HVAC; driving dynamics; and engine/transmission.

“Maruti Suzuki models continue to provide an optimized value to their customers, not only in terms of vehicle styling and features, but also in terms of operational costs, which owners report enhances the overall appeal and attractiveness of their vehicles,” said Arora.

Among premium midsize cars, the Honda Civic ranks highest (837) and performs particularly well in the vehicle exterior category. The Skoda Octavia/Laura (829) follows in the premium midsize segment rankings and performs well in four of the 10 categories: driving dynamics; engine/transmission; visibility and driving safety; and fuel economy.

Toyota Innova (836) ranks highest in the MUV/MPV segment for a third consecutive year and performs well in all 10 categories.

The 2009 India APEAL Study is based on responses from 6,619 owners who purchased a new vehicle between November 2008 and July 2009. Owners were interviewed between May and September 2009 in 20 major cities throughout India.

About India’s Automotive Market

Sales of new passenger vehicles in India in 2009 are expected to reach 1.63 million units, a 10.8 percent increase from the 1.47 million units sold in 2008, according to J.D. Power Asia Pacific’s Strategic Advisory Group. Looking to the future, J.D. Power expects sales of new passenger vehicles in India to reach 2.75million units in 2015.

About J.D. Power Asia Pacific

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

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, Platts, Capital IQ, J.D. Power and Associates, McGraw-Hill Construction and Aviation Week. The Corporation has more than 280 offices in 40 countries. Sales in 2008 were $6.4 billion. Additional information is available at www.mcgraw-hill.com.

 

 

 

 

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First Published: Dec 14 2009 | 5:16 PM IST

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