Toyota Tops the Dealer Satisfaction Ratings in 2008

‘Fairness in dealings', 'product portfolio', 'participative style of management' among the key parameters that drives commitment of channel partners

TNS Automotive Study

According to the findings of the syndicated 2008 TNS Dealer Satisfaction Study, Toyota takes the top slot with their dealers being the most satisfied in the industry. After 2006, where Indian major, Mahindra and Mahindra attained the top slot, Toyota returns to claim the pole position it held in 2004.

Releasing the findings, Pradeep Saxena, Sr Vice President, TNS Automotive said "It is largely believed that the dealer satisfaction is a function of the profit earned in the business. The study shows that it is not the only element that drives dealer commitment. There are other important areas such as fairness in dealings and access to top management which the channel partners value."

The 2008 TNS Automotive Syndicated Dealer Satisfaction Study was conducted across India covering a broad spectrum of passenger car dealers of all leading manufacturers. The Dealer Principals were requested to rate the performance of the respective manufacturers on a variety of aspects, related to dealership operations.

The study covered 286 dealers across the country. The DSS score represents the overall level of satisfaction of the dealer fraternity with their respective principals. Evidently, higher the score, the more satisfied are the dealers. It uses the proprietary TRI*M methodology of TNS and gives every manufacturer an index score which indicates the strength of relationship with their respective dealers.

The study goes beyond merely providing the satisfaction score. It is also designed to provide critical feedback to the industry on dealer expectations from the manufacturers. The 2008 DSS attempts to explain these parameters and shows how they have changed over time.

In 2008, the overall dealer satisfaction records a decline of 7 points from 2006 level. It stands at 74 in 2008. "It reflects growing expectations of dealers and a declining performance of the industry in meeting those in a tough economic environment and a cyclic downturn the industry goes through every few years," explains Pradeep Saxena.

In line with the industry, all major manufacturers recorded a decline in their scores over 2006. Toyota and Maruti Suzuki dramatically improved their ranks over 2006. Toyota was also the only company to improve its score.

The study also measures the satisfaction with profitability independently. Here also Toyota and Maruti Suzuki stand out as the only companies with improved performance over 2006.

 
However, profitability is not the only parameter that drives commitment of channel partners. 'Fairness in dealings' is one of the biggest drivers. It ranges from fairness in network expansion to fairness in model allocation. Another big driver is the product portfolio in terms of latest and internationally available products. Dealers also expect a more participative style management. They expect the principals to be open to their suggestions and set targets based on the understanding of local market conditions.

Dealers have rated the industry performance rather poorly on a basic process such as intimation to the dealers in case of delays in delivery of cars. Another such area is the back order for spare parts. They also rate the performance poor on advertisements in the local language and in the electronic media.

Dealers expect the manufacturers to provide them guidance/support in improving their business performance. An improved performance in this area can contribute to a relatively high improvement in dealer commitment. Other such areas are effectiveness of sales promotions and service promotions.