Propensity to Upgrade to a Car is Higher in the, North as Compared to Other Parts of the Country

Propensity to Upgrade to a Car is Higher in the, North as Compared to Other Parts of the Country

New Models from Hero Honda and Bajaj along with Bullet 350 and CD Deluxe lead customer satisfaction ratings

2007 TNS Motorcycle Total Customer Satisfaction Study

According to the findings of the 2007 TNS Motorcycle Total Customer Satisfaction study released on October 16, 2007 at New Delhi, the newly launched Hero Honda Splendor NXG, Hero Honda CBZ Xtreme, and Bajaj Discover 135, rank highest in their respective segments, while Hero Honda CD Deluxe continues to lead the 'standard' bikes. Bullet 350 continues its supremacy in the niche 'cruiser' bike segment.

Representing the responses of more than 7000 new-motorcycle buyers in regard to the performance of more than 50 models in the key areas of sales satisfaction, product quality, motorcycle performance and design, after-sales service, brand image, and cost-of ownership, the 2007 Motorcycle Total Customer Satisfaction (MTCS) study conducted by TNS Automotive, is the largest syndicated motorcycle study in India. The MTCS index score provides a measure of satisfaction and loyalty that a given model or brand enjoys among its customers.

Releasing the findings, Pradeep Saxena, Sr. Vice President, TNS India - Automotive said, "The overall industry average MTCS score continues to rise this year after observing an increase in 2006. The continued efforts of the industry in bringing down the cost of ownership and providing a good sales experience have clearly borne fruit."

He added, "A trend that has been continuing for the past couple of years is the strong performance of new models. They tend to get high ratings on Performance & Design, an indicator of the growing design capability of the Indian industry." This year Hero Honda NXG, Bajaj Discover 135 and Hero Honda CBZ Xtreme have received the high ratings on all satisfaction parameters in their respective segments. However their strong performance is driven by Quality and Design as all the top ranking models have high scores on 'Product Performance & Design' and 'Product Quality'.

Among the new models, Hero Honda CBZ Xtreme has received the industry best ratings in the Premium 150cc segment.

Whereas novelty in product design has a positive rub-off on customer expectations, Bullet 350 and Hero Honda CD Deluxe defy this general trend with a strong performance on all measures of customer satisfaction. This year Hero Honda Splendor+ has been overtaken by its brand extension Hero Honda Splendor NXG.

According to Pradeep Saxena, "The Upper Executive segment is a big contributor to the overall development of the Indian two-wheeler market as is evident from the acceptance of this segment by the Indian consumer. The right mix of performance, product design and cost of ownership is making this the preferred option among a large segment of Indian motorcycle owners who plan to buy a motorcycle in future".

The emergence and growth of this new segment will define the shape and direction of the industry in the years to come. All major manufacturers and new entrants in the market already have strong models in this segment and there seems to be a definite movement towards this engine size. A lot will of course depend on how the newly launched models perform and whether manufacturers are able to sustain this high level of customer satisfaction. This year, Bajaj with the launch of Discover 135 was able to break the dominance of the foreign companies in this segment. From the last year favourites, only Honda Shine is able to retain its position in top 3 while Yamaha Gladiator and Suzuki Heat slipped to 8th and 6th position respectively from 2nd and 3rd position last year.

The 2007 MTCS study also examines key trends in the industry. Some of the significant observations are:

▪	Expectation of the buyer of Standard motorcycles (Entry level bikes) has gone up from the previous level; now he also expects similar attention and commitment as the buyer of higher value bikes. He demands test drives, want a stylish product as manufacturers have raised the bar in past by offering the products like TVS Star City, Hero Honda CD Deluxe and Bajaj Platina.

▪	Styling of the bikes in Executive segment is gaining importance in overall customer satisfaction. In transacting with the service dealer, competitive pricing and explanation have gained importance as well as have high impact on retention.

▪	For the Upper Executive segment latest technology and style have gained importance. Explanation of feature and benefit gained in terms of stated importance while Salesperson knowledge impacts largely on retention.

▪	Premium segment buyers are at the centre of focus for all of the manufacturers that have educated the customer and empowered him to buy consciously after comparing all the options, now he expects manufacturers to give him the best technology, he questions salesperson and look for the best financing options available and demands quick service.

▪	For future purchases the preference for motorcycles with high engine capacity (150cc and above) is seen in all four regions of the country; however it is almost 70% in South closely followed by West. Across the country, close to 24% of current motorcycle owners intend to upgrade to a four-wheeler as their next vehicle. The propensity to upgrade to a car is higher in the north as compared to other parts of the country. The growth in the entry and premium compact segment of the four-wheeler market composition will be clearly impacted by the large base of current motorcycle owners.

Centres asnd Period of Study

The MTCS study was conducted from June through August 2007 across 27 centers: Ahmedabad, Ajmer, Bangalore, Bhavnagar, Bhopal, Bhubaneshwar, Chandigarh, Chennai, Cochin, Coimbatore, Dehradun, Delhi (NCR), Hubli, Hyderabad, Indore, Jaipur, Jalgaon, Kolkata, Lucknow, Ludhiana, Mumbai, Patna, Pune, Rajamundry, Ranchi, Surat, and Trivandrum.