Ownership Costs Most Important in 2013 Brazil VOSS

Jon Sederstrom-Final

Jon Sederstrom

Overall vehicle ownership satisfaction in Brazil averages 733 (on a 1,000-point scale), according to our 2013 Brazil Vehicle Ownership Satisfaction Study (VOSS), and ownership cost satisfaction—which accounts for the highest importance weight in the study’s overall satisfaction index—receives the lowest average score among the four measures that are examined.

The 2013 study, based on evaluations of 8,387 online interviews with new-vehicle owners in the country after 12 to 36 months of ownership, evaluates four measures of satisfaction across the new-vehicle ownership experience. In order of importance, these measures are: ownership costs (42%); service satisfaction (23%); vehicle appeal (19%); and vehicle quality/reliability (16%).

Among all countries in which J.D. Power publishes the Vehicle Ownership Satisfaction Study, owners in Brazil place the most importance on the cost of owning a vehicle. In part, this is due to spending a larger percentage of their income on vehicle service and repairs, fuel, taxes, and insurance. 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 ›

Cost of Vehicle Ownership in Brazil Has Greatest Impact on Satisfaction

Jon Osborn

New-vehicle owners in Brazil, which is the world’s fifth-largest country in terms of population and geographic area—spend a disproportionate amount of their personal income on their vehicles, compared to new-vehicle owners in other countries. Vehicle owners in Brazil pay much higher prices to purchase their new vehicle—often twice as much as US owners pay—due in part to taxes. Owners in Brazil also spend more to finance their new vehicles. A typical new-vehicle loan can have interest rates as high as 15% per year. Finally, in addition to the costs of purchasing a vehicle, new-vehicle owners in Brazil are concerned about the costs of ownership—which include maintenance and repair, insurance and fuel costs. In fact, according to J.D. Power research, these owners place more importance on the cost of owning a new vehicle than do new-vehicle owners in many other countries.

Each year J.D. Power conducts its Brazil Vehicle Ownership Satisfaction Study (VOSS) on an annual basis to measure new-vehicle owner satisfaction after 2 years of ownership in four factors: Vehicle Quality, Vehicle Appeal, Dealer Service Experience, and Cost of Ownership. And, according to our analysis, Cost of Ownership accounts for 31% of the overall satisfaction index and is the most important of the four key factors in the Brazil VOSS.

Among the other countries where J.D. Power has published VOSS—Canada, France, Germany, Italy, Mexico, and New Zealand—Italy is the only other market where cost of ownership has a similarly high importance weight (32%) in determining overall vehicle ownership satisfaction. In contrast, Cost of Ownership accounts for just 23% of the overall satisfaction index weight in measuring vehicle owner satisfaction in Mexico and only 24% in Canada. Continue reading ›