Initial Quality Study 2004 (IQS 2004)

IQS (Initial Quality Study)

Overall Initial Vehicle Quality in India Slips
Maruti Alto, Maruti Esteem, Honda City, Toyota Corolla and Toyota Qualis Rank Highest in Initial Quality in their Respective Vehicle Segments

JD Power Asia Pacific 2004 IQS Study

Initial quality in the automotive industry in India has declined since 2003, due largely to an increase in problems with excessive fuel consumption reported by new-vehicle owners, according to the JD Power Asia Pacific 2004 India Initial Quality Study SM (IQS), released on 7th December 2004.

The total number of problems reported by new-vehicle owners is 192 problems per 100 vehicles (PP100) in 2004 - a decline of 9 PP100 from 2003. Excessive fuel consumption, a problem symptom in the engine category, continues to be the most frequently reported problem in the industry. Sixteen of the 20 models ranked in both 2003 and 2004 register increasing reports on excessive fuel consumption.

"The increase in the number of customers reporting a problem with their vehicle's fuel consumption is not surprising, given the sharp increase in fuel prices in India," said Mohit Arora, Manager at JD Power Asia Pacific. "As fuel costs account for more than 85 per cent of the total operating cost of a vehicle, customers today expect better fuel economy from their new vehicles."

Maruti Alto improves its PP100 score 27 per cent from 2003 to rank highest in the premium compact segment for the first time since its introduction. The re-launched Fiat Palio NV follows in the segment rankings, improving an impressive 52 per cent in engine-related problems over its previous version. The Fiat Palio is the most improved model in the industry in terms of initial vehicle quality.

Maruti Esteem ranks highest in the entry midsize car segment for the second consecutive year.

Ford Ikon posts a 13 per cent improvement over 2003 to rank second, followed by the Opel Corsa/Swing.

Honda City continues to lead the midsize car segment, followed by the Hyundai Accent and Maruti Baleno, respectively.

Toyota Corolla ranks highest in the premium midsize segment with 83 PP100 - the lowest PP100 score in the industry. The new Chevrolet Optra debuts in the IQS with a score of 119 PP100, ranking second in the segment. Skoda Octavia ranked third.

"Toyota Corolla's improvement in overall quality is driven by a 61 per cent reduction in the number of problems for ride, handling and braking," said Arora. "Additionally, compared to other models in the industry, Corolla owners report the fewest problems related to vehicle exterior, ride, handling and braking, and engine.

" Toyota Qualis ranks highest in the MUV/SUV segment, followed by the Tata Sumo. Both Qualis and Sumo have improved IQS scores, by more than 18 per cent from 2003. Tata Safari ranks third.

"Toyota Qualis presents a very consistent performance over the years as it ranks highest in the segment for the fifth consecutive year," said Arora. "This impressive performance translates into high loyalty from Qualis customers-the highest in the industry-with 62 per cent of its customers indicating that they would definitely repurchase another Toyota vehicle."

The 2004 India Initial Quality Study is based on evaluations from 3,788 new-vehicle owners of 31 different models representing 12 nameplates. The study, now in its eighth year, measures vehicle quality in the first two to six months of ownership and quantifies problems experienced in nine IQS categories: ride/handling/braking; features/controls; seats; heating, ventilation and cooling (HVAC); sound system; exterior; interior; engine; and transmission.