J.D. Power Asia Pacific Expert Considers Aftermarket Drivers in India

MohitArora

Mohit Arora

Earlier this year, the Competition Commission of India (CCI) served notice to 17 automakers in the country for what the Commission termed to be anti-competitive practices. The charge was that these automakers hold restrictive control on the sales of spare parts to their authorized service networks which, in turn, means high prices to consumers. Mohit Arora, executive director of J.D. Power Asia Pacific, addressed the current situation in an article that was published in Japan’s Nikkan Jidosha Shinmbun (Daily Automotive News) recently. The article, “Drivers of a Vibrant Aftermarket in India,” is excerpted:

“Under India’s CCI ruling, the 17 carmakers will be forced to supply parts in the open market and may have to limit sales to their own dealerships. There are key questions that the industry must face if this ruling holds.

• If this happens, would the authorized networks in the Indian automotive industry be ready to embrace a deregulated aftermarket industry akin to mature markets like the United States, Europe and Thailand?

• Can the two networks survive alongside each other profitably?

• How is consumer behavior likely to change once a reasonable aftermarket option is available to them? Continue reading ›

Why do Shoppers Avoid Alternative Powertrain Vehicles?

More than one-third (36%) of new-vehicle shoppers avoid alternative powertrain vehicles—hybrid, plug-in hybrid or electric vehicles—mainly because of cost/price, according to our 2013 Avoider Study, which is based on responses from nearly 31,000 new-vehicle owners who registered their new car or light truck in May 2012.

The second-highest percentage of owners (25%) who avoid . . . Continue Reading Why do Shoppers Avoid Alternative Powertrain Vehicles?

Retail Auto Sales in May to Post Strongest Gain Since February 2011

John Humphrey

U.S. retail new-vehicle sales in May are projected to climb 20%* from May 2011 and reach 1.087 million units, which would be the largest year-over-year volume gain since February 2011, when sales climbed 27% from February 2010, based on data collected during the first 17 selling days of the month by the Power Information Network® (PIN) and LMC Automotive.**

In a monthly sales forecast update developed by J.D. Power and LMC Automotive, combined light-vehicle sales (retail and fleet) in May are expected to rise even higher—to some 1.384 million unit deliveries, which would be up 21% from 1.059 million unit sales in May 2011. Fleet volume is set to remain strong and account for 22% of total sales in May. May’s total sales pace is predicted to average 14.3 million units, up from 11.7 million units in May 2011, but not quite as strong as April’s pace of 14.4 million units. Continue reading ›