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 ›

Sales Satisfaction in Taiwan Remains Flat Even with Market Inducements

TaipeiWEBA majority (85%) of new-vehicle buyers in Taiwan indicated that they received discounts on price, and a higher percentage of buyers also received free accessories and extended warranties from their selling dealer this year compared with 2012, according to our 2013 Taiwan Sales Satisfaction Index (SSI) Study. At the same time, sales satisfaction in 2013 averages 890 points (on a 1,000-point scale), which is unchanged from 2012.

Inducements appear to be more popular this year as new-vehicle sales declined during the first half of the year, mostly driven by an uncertain economic climate, which caused customers to defer their purchase and wait for price cuts and possible government incentives. This year, satisfaction with the deal, one of the seven factors* contributing to satisfaction with the new-vehicle purchase and delivery experience that are examined in this study, has increased the most—up 12 points from 2012. Continue reading ›

Large Pickups Bolster July U.S. Sales; Consumers Enticed by Easier Credit Terms

CarDealership Compact CUV 06In July, consumers continued to replace aging vehicles and take advantage of easier credit, including low-interest rate loans and longer terms. New-vehicle sales totaled 1.313 million units in July and were up 9.4% on a selling-day adjusted basis from July 2013, according to J.D. Power’s Power Information Network® (PIN) and strategic partner LMC Automotive. The seasonally adjusted annual selling rate in July was 15.8 million units. There was one more selling day in July 2013 than in July 2012.

Large pickups and compacts—especially compact cars and compact crossovers—outpaced most other segments as nearly all U.S. automakers reported higher sales than in July 2012. Some U.S. automakers said they had their best July sales since 2006—before the Great Recession. Continue reading ›

First-Half 2013 Auto Sales Feature Spike in Trucks, Compact Sales

1Salesperson and Couple at DealershipU.S. new-vehicle sales ended the first six months of 2013 on an upswing, according to J.D. Power research and analysis from the Power Information Network® (PIN) and strategic partner LMC Automotive. The first half of 2013 saw the strongest June sales in the past six years with deliveries of 1.4 million units, which should lead into strong sales momentum in the second half of the year. Retail delivery demand is firmly in pre-Great Recession territory, according to J.D. Power analysts.

Total new-vehicle deliveries in January-June 2013 were up 8.4% to 7.82 million unit sales from 7.26 million sales in the same six-month period a year ago. Light trucks outperformed cars in the first half and captured 1.8 more points of share than in the same period of 2012.

Another first-half headline: the Detroit-based automakers together captured nearly 1 additional point of industry share in the U.S. auto market in the first half—46.1% vs. 45.2% in 2012. General Motors Co. remained the sales leader in the U.S. market during the first six months of 2013 with 18.17%, while Ford garnered a 16.32% share of the market. Toyota Group was next with a slightly smaller 14.18% portion, followed by Fiat-Chrysler with a slightly expanded 11.65% share of the new-vehicle market. Continue reading ›

Maruti Suzuki, Toyota Earn Most Segment Awards in 2013 India VDS

Maruti Suzuki and Toyota each earn two awards for producing models with the fewest problems per 100 vehicles (PP100) in their respective segments, according to the J.D. Power Asia Pacific 2013 India Vehicle Dependability StudySM (VDS). Other nameplates earning segment-level model awards for vehicle dependability are: Honda, Chevrolet and Ford.

Although there are 11 . . . Continue Reading Maruti Suzuki, Toyota Earn Most Segment Awards in 2013 India VDS

Detroit Automakers Gain Traction with May Light-Truck Sales in U.S. Market

CarDealership Compact CUV 06This spring, strong demand for large pickups and compact crossovers (CUVs) shored up May’s light-vehicle totals. Both Ford Motor Co. and Fiat-Chrysler Group reported double-digit increases and said their results were stronger than before the Great Recession that ended in 2009. Ford officials said commercial truck purchases increased related to positive changes in the housing and energy sectors.

Some 156,000 more new cars and light trucks were sold in May 2013 than in the previous month this year (April). According to analysis from J.D. Power’s Power Information Network® (PIN) and LMC Automotive, May deliveries rose 7.8% from April on a selling-day adjusted basis. Sales totaled 1.442 million units, up 8.2% from year-ago tallies. The seasonally adjusted annual selling rate (SAAR) in May averaged 15.2 million units, which was significantly stronger than a weaker 13.9 million-unit pace in May 2012. Continue reading ›

British Brands Advance in UK Vehicle Ownership Satisfaction Study

Mark_Lendrich

Mark Lendrich

British automakers have made great strides in the past few years in terms of offering appealing product lines and improved service, which is something they’ve often struggled with in the past. Jaguar, for instance, ranks highest in vehicle ownership satisfaction for a second straight year, according to the 2013 UK Vehicle Ownership Satisfaction Study (VOSS) that is a collaborative effort produced by J.D. Power and What Car?, a website and magazine owned by the Haymarket Media Group in the UK.

In the UK, current forecasts predict that new-vehicle sales will increase nearly 18% during the next five years, according to analysis from our strategic partner LMC Automotive. This puts British brands in a beneficial position to retain current customers and attract new buyers.

The 2013 UK VOSS, which is based on 16,104 online evaluations by original vehicle owners in the UK after an average of two years of ownership, examines customer satisfaction with vehicle and dealer service, based on the evaluation of four key measures. The measures and their weights in the overall index are: vehicle appeal (31%), which includes performance, design, comfort and features; ownership costs (25%), which include fuel consumption, insurance and costs of service/repair; service satisfaction (22%); and vehicle quality and reliability (22%). Continue reading ›

Large Pickups, Compact Crossovers Bolster April U.S. Auto Sales

14725154-car-dealership-woman-receiving-car-key-from-salesmanU.S. light-vehicle sales in April 2013 were set to reach 1.286 million unit sales, which would be up 4% from a year ago on a selling-day adjusted basis,* according to an update from J.D. Power and Associates and its strategic partner, LMC Automotive. The sales rate in April would translate to a slightly lower 14.9 million-unit seasonally-adjusted selling pace.

Early automaker reports indicate that sales (unadjusted) will rise about 9% from a year ago, partly due to higher demand for large pickups and compact crossovers.

The Detroit Three led sales gains with double-digit increases from April 2012. They outpaced two of their top-volume Japan-based rivals—Toyota and Honda Groups. In early results, the third major Japanese automaker, Nissan Group, reported one of the best year-over-year gains—sales were up 23% on an unadjusted basis from April 2012.

Demand was particularly strong for large pickups with improvement in the housing and construction markets. The resilience of the U.S. consumer’s pent-up demand also bolstered sales, according to Jeff Schuster, senior vice president of forecasting at LMC Automotive. He said consumer spending remains remarkably stronger than the economy suggests it should be. Continue reading ›

GM’s JV Brands Set March and First-Quarter Sales Records in China

GM-China-HQGeneral Motors and its joint venture operations in China set all-time sales records in the largest passenger-vehicle market during March and through the first quarter of 2013, according to the company. March deliveries rose nearly 13% from a year ago to 290,538 unit sales. It was the second-highest monthly sales tally in GM’s history in China. Its first-quarter total sales in China also rose nearly 10% from last year to 816,373 units.

In related news, GM also outsold Volkswagen Group in China for the first time in the past three quarters, thanks to increased demand for Buick vehicles, according to news reports. China’s auto manufacturers group said that VW’s growth surpassed the overall passenger-vehicle market in China during the first quarter but its increase in March was not as strong. Continue reading ›

Honda Goes After Share in India with Diesel Entries

Honda Group is getting ready to renew its competitive position in India’s passenger-vehicle market by introducing a slew of diesel models, starting with the soon‐to‐be‐launched Amaze sedan and Brio hatchback.What’s notable is that most Honda models will be equipped with a diesel engine. The only exceptions may be the Civic compact car and Accord midsize sedan.

Ammar Master

No doubt, Honda expects sales to improve in a big way with the launch of its diesel versions. However, LMC Automotive is more cautious since the government has sent a strong signal towards eventual deregulation of diesel prices in India. Admittedly, India’s government has not announced a price increase in diesel fuel, but it has put the onus on oil marketing companies to raise rates gradually in small proportions to bring them in line with global prices. As a result, the 40% price difference between petrol (gasoline) and diesel will slowly change over the course of the next year.

Diesel Amaze and Brio Hatchback to Launch in India Market

Having said this, we agree that having a diesel option is a must in India. Honda, therefore, is on course to correct a major disadvantage in India. We think combined sales of diesel versions of the Amaze and Brio models could make up about 60% of overall volume. Continue reading ›