Service Customers in Taiwan Expect Cost Estimate and Follow-Up

Taipei, Taiwan.Overall customer satisfaction with the service experience among vehicle owners in Taiwan who visited their dealership or service center improves by 26 points from 2012, to 873 (on a 1,000-point scale), according to our 2013 Taiwan Customer Satisfaction Index (CSI) Study.*

Study findings indicate that when customers in Taiwan drop off their vehicle for service at the dealership, they expect an estimate of charges and when work is completed, they want an explanation of the charges for service.

In 2013, satisfaction improves in each of the five factors measured with a significant advance of 27 points for vehicle pickup followed by 26-point improvements in each of these three factors: service initiation, service advisor, and service facility. Continue reading ›

China Rolls Out New Green-Vehicle Subsidies and Awareness Campaign

China Bustle and Street TrafficChina’s urban air quality has long been a source of concern for China’s government and citizens, as the country’s relatively environmentally unregulated factories spewed harmful emissions into the air. Now that the country has become the global leader in annual light-vehicle sales—and the number of light vehicles in operation has exceeded 120 million units, more than triple the number from 2000—China’s air quality challenges are an even greater concern.

Early this year, air pollution in China’s major cities, such as Beijing, was so challenging that residents stocked up on face masks and air purifiers. This kind of smog incidence is partly behind several modest programs that China’s government administrators rolled out recently.

These include another incentive program for buying fuel-efficient vehicles and a “No Car Day” campaign to help curb increasing levels of vehicle pollution in large cities, according to news reports in The Wall Street Journal and China Global Times. Continue reading ›

Luxury Brands in India Must Reinforce a Premium Image During Sales Experience

Mohit Arora

Mohit Arora

The luxury vehicle market in India has grown in recent years, with premium sales reaching 26,000 units in 2013. This number is expected to triple to 84,000 units by 2020, according to our strategic partner LMC Automotive. In addition, an increase in the number of luxury models available in India, coupled with attractive financial options that enhance affordability, has helped the luxury market to grow.

Success, however, brings with it additional challenges for premium brands. Sales growth adds pressure for luxury brands to differentiate themselves from the mass market brands. According to findings in our 2013 India Sales Satisfaction Index (SSI) Study, overall satisfaction with the sales experience in the luxury segment averages 873 points on a 1,000-point scale. Although the luxury segment average is 31 points higher than the massmarket segment average (842), this index score is not a major differentiator for these brands, based on study results.

The price of luxury vehicles is much higher than the price of mass market vehicles. We see that customers expect luxury brands to provide a truly differentiated experience to enhance the value of ownership of these vehicles. The current network of dealers does not provide the level of differentiation expected to reinforce the premium image of luxury brands among these more demanding customers. Continue reading ›

September U.S. Sales are Slightly Weaker after Strong Labor Day Finish

HumphreyJ

John Humphrey

During the first 10 selling days in September, U.S. new car and light-truck sales were up 4% from a year ago yet were not as robust as in recent months, according to a monthly sales forecast

update from J.D. Power and strategic partner LMC Automotive.

As was expected, more than 248,000 new-vehicle sales during the Labor Day weekend were pulled from September into August tallies, according to the forecast update.

September retail sales are projected to rise just 2% from September 2012, when adjusted for two fewer selling days in September vs. the same month a year ago (23 days in September 2013 vs. 25 days in September 2012). Continue reading ›

Superior Website Experience in China Boosts Test Drive, Purchase Intent

Dr. Mei Songlin

Dr. Mei Songlin

When new-vehicle shoppers in China have a satisfying experience using a manufacturer’s website for research, there is a higher chance that they will take a test drive and purchase a particular brand vehicle, according to the 2013 China Brand Website Evaluation Study (BWES).

The inaugural online study measures the usefulness of automaker websites at the brand level during the new-vehicle shopping process, based on four key factors (in order of weight or importance): information and content (27%); appearance (25%); speed (24%); and navigation (23%). All scores in this study are based on a 1,000-point scale.

China New-Vehicle Buyers More Satisfied with Website Speed

Speed achieves the highest satisfaction score (730) among the four factors measured, while information and content receives the lowest score (720). We observe that new-vehicle shoppers indicate a strong need for sufficient information related to entertainment systems and fuel efficiency. Continue reading ›

Sales Growth in the Philippines May Hinder New-Vehicle Sales Satisfaction

Mohit Arora

Mohit Arora

Despite the positive news of strong first-half new-vehicle sales gains in the Philippines—one of Southeast Asia’s smaller automotive markets—overall satisfaction with the new-vehicle purchase experience has declined by nine points from 2012, to 846 (on a 1,000-point scale), according to the 2013 Philippines Sales Satisfaction Index (SSI) Study.

All factors measured in the study post lower index scores than in 2012 with the most notable dip being in the salesperson factor. Continue reading ›

New-Vehicle Buyers in Thailand are More Informed Before Showroom Visits

Traffic on Thai StreetNew-vehicle buyers in Thailand use an average of three sources to gather information before visiting a dealership—up from an average of 2.5 sources in 2012, according to the 2013 Thailand Sales Satisfaction Index (SSI) Study. A larger percentage of Thai new-car buyers also use the Internet (45%) than in the previous year (33%).

A few more highlights from this year’s study:

• Overall sales satisfaction averages 904 (on a 1,000-point scale), a 4-point improvement from 2012. Continue reading ›

After-Sale Service Satisfaction Rises in Indonesia; Ford Ranks Highest in CSI

Road in Jakarta, IndonesiaOverall customer satisfaction with the after-sale service experience in Indonesia improves by 15 points from 2012, to an average of 755 (based on a 1,000-point scale), according to the 2013 Indonesia Customer Service Index (CSI) Study. The largest advances come in two of five factors* evaluated—satisfaction with service initiation and service advisor.

The improvement in after-sale service satisfaction is noteworthy as there has been sales growth in the country during the past few years, which makes it critical to continue to manage customer expectations. Light-vehicle deliveries in 2013 are expected to increase by about 10% (to 1.1 million units) from 2012, based on a forecast from strategic partner LMC Automotive. Continue reading ›

Labor Day Sales Events Boost August U.S. Light-Vehicle Delivery Totals

Buyer and Dealership ManagerU.S. new light-vehicle sales in August were more robust than anticipated, mainly due to a heady retail sales finish over the Labor Day weekend. Retail sales even outperformed the accurate monthly forecast from J.D. Power’s Power Information Network® (PIN) and strategic partner LMC Automotive, which already had projected one of the strongest sales months in six years.

There was an extra boost from holiday sales, especially on August 31 since Labor Day weekend was counted in August’s sales total as the month ended on a weekend. J.D. Power experts say they are not sure yet how much August sales will pull forward from September results. Total consumer spending on new vehicles in August was the highest on record—reaching $38.5 billion,—mainly due to strong transaction prices and higher sales, according to J.D. Power analysis.

Retail sales in August climbed 17.7% above retail totals in the same month of 2012. The final week of August sales totals (August 26 – Sept. 3) captured nearly 35% of the month’s retail sales volume, according to Dave Cutting, senior manager of North American Forecasting at LMC Automotive. Retail deliveries totaled 1.34 million units and the seasonally adjusted selling pace (SAAR) of 13.8 million was the highest since 2006. Continue reading ›

Over Half of Gen Y Shoppers Who Use the Web are Open to Any Vehicle Brand

Arianne_Walker New

Arianne Walker

One-half of all new-vehicle buyers who use the Internet in their shopping process (AIUs) are open to considering any vehicle brand at the beginning of their research experience. In addition, that percentage is even higher (54%) among Gen Y AIUs, according to our 2013 New Autoshopper Study.*

We see that close to one-half (47%) of Gen Y AIUs use smartphones in their shopping process—the most of any age demographic, which indicates how important it is for brands and websites to put these younger buyers into their marketing equations. The share of new-vehicle buyers in Gen Y is increasing at the greatest rate among all buyers and is projected to comprise 23% of all 2013 retail sales.

Automakers have a terrific opportunity to influence younger buyers during their shopping process, which averages about four months, particularly since they are quite open to considering different brands as they begin their new-vehicle research. In addition, the digital presence of the brand through mobile advertising and by providing content across mobile-accessible sites may be a great way to reach Gen Y buyers, since we see almost half that use a smartphone during the shopping process. Continue reading ›