Thorough Explanations Enhance After-Sales Service Satisfaction in Vietnam

Vietnam01New-vehicle owners in Vietnam prefer to have the type and scope of maintenance or repair work explained prior to their service visit and after the work is completed at the dealer or authorized service center, according to our 2013 Vietnam Customer Service Index (CSI) Study. When a service advisor provides explanations at the beginning and completion of work, satisfaction improves significantly—by 24 points (on a 1,000-point scale). 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 ›

Exceptional Service Advisors May Lead to Higher Satisfaction with Dealer Service in the Philippines

manila-trafficNew-vehicle owners in the Philippines this year put more importance on personal interaction and having exceptional service advisors as a first point of contact at the dealership, according to our 2013 Philippines Customer Service Index (CSI) Study.

The study, which measures overall customer service satisfaction among more than 1,800 vehicle owners who visited an authorized service center for maintenance or repair work during the first 12 to 24 months of ownership, finds that overall satisfaction with service at authorized dealerships improves by an average of 4 points in 2013 to 832 (on a 1,000-point scale) vs. last year. Continue reading ›

Who is the Winner? EVs or Flex-Fuel Vehicles and Biofuel?

bangkok-thailandIn looking at the future of alternative fuel vehicles—principally electric vehicles (EVs)—in the Thai market, it appears that the only push for promoting EVs is coming from the Electricity Generating Authority of Thailand (EGAT). In fact, the only comprehensive study on EV use in Thailand has been conducted by EGAT, which suggests that shifting electricity generation at power plants for use in electric vehicles would improve plant efficiency. However, can this alone be the driving force for consumers to move to purchasing EVs? The answer is an emphatic ‘No.’

Thailand’s Future Energy Plans Focus on Biofuel

A major obstacle in transitioning to EV use in Thailand comes in the form of the government’s Alternative Energy Development Plan (2008‐2023), which clearly shows that planned energy output to serve the transport sector for the next decade will be provided by biofuels, not electricity.

Thailand has an abundant supply of sugar cane, which can be processed into ethanol. Ethanol is an alcohol-based fuel made by distilling and fermenting crops, such as sugar cane, and more experimental sources such as cassava and molasses. Continue reading ›

Hybrid Vehicles Face a Bumpy Road in Southeast Asia

bangkok-thailandThree years ago, Toyota Group began producing and selling the first hybrid model—a Camry—in Thailand. Since then, sales of hybrid cars in that country have grown significantly. In 2012, hybrid sales in Thailand were 19,000 units. Sales of hybrids in Thailand have been growing at an average rate of almost 60% during this time frame. Now, there are at least four hybrid models being sold in the Thai market, and this year hybrid vehicle sales are projected to surpass 20,000 units.

Despite strong and stable growth, a volume of 20,000 unit sales is miniscule in a country where projected sales volume in 2013 is 1.2 million light vehicles. The hybrid vehicle sector accounts for only a 1% share of the entire domestic market (3% of passenger-vehicle volumes). This is very small compared with an 18% hybrid share in Japan, the home market of the key OEMs that have sales operations in Thailand. To be fair, the ratio of hybrid vehicles in Malaysia, a key competitor for regional production of hybrids, amounted to just 2%, or sales of 15,000 units, last year.

Currently, we expect the market share of hybrid cars in Thailand to be under 5% for the foreseeable future. Our projection for hybrid sales in 2020 is slightly over 30,000. In comparison, hybrid vehicle sales in Malaysia are likely to nearly reach 50,000 units by 2020, and will account for almost 10% of that country’s passenger-vehicle market. Continue reading ›