Tata Motors Remains Leader in Large Trucks and Eicher Leads in LCVs

Ashok Leyland leads in the Tipper segment

TNS Report

A buoyant Indian economy growing at more than 8% and a robust growth of movement of goods and passenger traffic via road, is driving increased demand for Commercial Vehicles in India making the Commercial Vehicle industry, the lifeline of Indian economy. The Indian Commercial Vehicle industry is the fourth largest manufacturer of CVs in the world with major players being Tata Motors, Ashok Leyland, Mahindra & Mahindra , Eicher and Swaraj Mazda.

The Commercial Vehicle industry grew at 33% in FY 2006-07 as compared to FY 2005-06. In addition to infrastructure facilities (road networks and condition), Government regulatory norms (emission. loading, etc.), interest rates, economy health, fuel costs and freight costs, the industry dynamics in terms of demand is dependent on some of the consumer preferences. To name a few, the preferences could be vehicle price, specifications, applications, technology, fuel efficiency, spare parts availability, after sales network, etc.

TNS TruckTrak aims to map customer expectations, experiences and preferences in the market and provide manufacturers with vital inputs in their efforts to enhance the customer experience. TNS TruckTrak 2007 in its second year has covered over 6000 truck customers nationally for their sales and after-sales experience. To extend both width & depth to the study, new segments such as exclusive tipper and high end CVs have been added this year. A separate track for buses has also been carried, highlights of which would soon be out.

It is evident that the efforts made by the manufactures in terms of infrastructure build-up at both Sales and Service outlets to provide facilities and customer comfort seem to have paid off handsomely.

In the key M&HCV category (MCV+HCV+ Trailors), Tata scores highest on the Customer Satisfaction Index. AL leads in the MAV/HCV and the Tipper segment delivering the highest customer satisfaction index of 87 for Tippers.

Eicher has maintained its lead in the LCV segment with Tata Motors a close second with a single point difference. In the Intermediate vehicle segment (up to 10 Tons), AL leads the way and has improved its overall position as compared to the last year.

 
Customers are fairly satisfied with the overall sales process at the dealerships across manufacturers, but would still like to have a better system of vehicle delivery in place.

On-time delivery, as was last year, is still an issue and manufacturers will have to do something in this area to enhance the overall customer experience. “Better road infrastructure coupled with a boost in the overall economy has had a positive impact on the growth of the commercial vehicle sector. This has resulted in increased demand for vehicles and manufacturers have not been able to keep pace with it and therefore, a delay in delivery of the vehicles. While' the overall purchase experience at the showroom has been rated high, the after sales-service is not in the same league. This in the long run will act as a key differentiator between manufacturers and will impact the final customer brand choice”, says Muder Chiba, Executive Vice President, TNS India.

Sales Process: While the quality of new vehicles delivered is rated very good including dealership infrastructure and ambience, "Customer interactions during delivery process" like explaining warranty and service terms clearly came out as an area for improvement. Just as the car industry, post-purchase contact and relationship management will become key drivers in the near future.

After Sales Service - the key customer concern: As in the rest of the automotive industry, after-sales service is the key concern area for customers. Their expectation on the overall quality continues to go higher. After-Sales service is rated considerably lower than the purchase experience.

Overall quality of service has been rated very low, essentially because of the below average ratings on time taken for service & repair and cost of spare parts. The cost comparisons in this industry are made with local / neighbourhood mechanics providing 24X7 service at the doorstep. “There lies a great challenge for manufacturers to educate and demonstrate value to their customers so as to overcome this competition. To start with, manufacturers need to adopt processes such as building a better interface with the customer at the workshop, reduce time taken for service/repair as well as 'get it right the first time'- reduce repeat visit to win the trust & confidence of its customers" adds Rahul Sharma, Associate Vice President, TNS India.

The study also finds that managing customer expectations has become increasingly challenging as the length of vehicle ownership increases. While it varies by segment and make, across the truck industry, the average TRIM score of 82 for owners in up to 6-month period, drops by 8 points to 74 for customers in 12-36 month ownership period.