Maruti Suzuki Ranks Highest in India Sales Satisfaction Study for a Third Consecutive Year

More Than One in Four New-Vehicle Buyers Upgrade From Two-Wheel Vehicles

J D Power Asia Pacific 2006 India SSI Study

Maruti Suzuki ranks highest in overall sales satisfaction for a third consecutive year, according to the JD Power Asia Pacific 2006 India Sales Satisfaction Index Study^SM released on 23rd August 2006.

 
Maruti Suzuki outperforms other makes on all six factors contributing to the overall sales satisfaction index: delivery process, delivery timing, salesperson, dealer facility, paperwork and deal.

Maruti Suzuki is followed in the rankings by Skoda. Seven of the nine nameplates ranked in the study record improvements compared to 2005, with Skoda, Honda and Hyundai leading the improvement trend.

"While the performance of Maruti Suzuki continues to impress, it is encouraging to note the improvements made by other players in the industry," said Mohit Arora, Director at JD Power Asia Pacific. "Undoubtedly, manufacturers and their dealerships in India today realize the bottom-line impact of satisfying customers, and are focusing on improving their performance. Top-ranking Maruti Suzuki demonstrates this impact, as its customers are the most inclined to repurchase their make when the time comes for replacement."

 
The industry records improvements across all factors, except the deal. The study finds a close correlation between price paid and buyer perception of the deal they received. Buyers are paying anywhere between 6% to 12% more, on average, across all segments for their new vehicle compared to 2005. This is over and above a similar increase seen in 2005.

"The higher price paid across segments is a result of two factors: new-model launches and price increases for existing models," said Arora. "Nevertheless, customers are clearly expressing their resentment with the higher price paid, as customer satisfaction with the deal they received has dropped."

For the first time, the study analyses the upgrade behaviour in the India auto industry. The study finds that while nearly two-thirds of new-vehicle buyers had previously owned a car, more than one-fourth upgraded from a two-wheeler such as a scooter or a motorcycle. Market leader Maruti Suzuki has the highest per centage of prior two-wheeler owners, while Skoda has the fewest.

"Prior owners of two-wheelers overwhelmingly purchase small cars as a practical alternative," said Arora. "However, the car repurchaser’s choice of a new vehicle is driven by comfort and roominess."

The study, now in its seventh year, examines satisfaction of new-vehicle buyers with the sales and delivery experience at two to six months of ownership. The 2006 study is based on responses from 4,562 owners of 37 different vehicle models, and was fielded from March 2006 to May 2006.