Go Back   Team-BHP > BHP India > Team-BHP Reviews > Indian Car Dealerships


Reply
 
Thread Tools Search this Thread
Old 31st May 2014, 12:01   #1
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,735
Thanked: 89,266 Times
Default So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers

Auto manufacturers in India are striving to help their dealers cope with a slowing domestic market, by helping them improve the after-sales aspect of their business, according to the J.D. Power Asia Pacific 2014 "India Dealer Satisfaction with Automotive Manufacturers Index".

The study measures dealer satisfaction with vehicle manufacturers, and identifies dealer attitudes regarding the automotive retail business. Overall dealer satisfaction is determined by examining nine factors: marketing and sales activities, product range, vehicle ordering and delivery, sales team, spare parts, warranty claims, after-sales team, training and support from the manufacturer. The study is based on responses from 658 dealer principals & general managers located in 200 cities throughout India. The study was conducted in association with the Federation of Automobile Dealers Association (FADA), and was fielded between February - March 2014.

Key Findings:

• Only 42% of dealers estimate they will be profitable in FY 2013-2014.

• The situation is more critical for dealerships based in India’s 6 largest metros, with only 31% expecting to make a profit this year (presumably due to higher real estate costs). Given the relatively weak outlook on vehicle sales, dealerships are concerned about the viability of their businesses.

• Automakers are increasingly helping dealers fund their spare part inventories, as 48% of dealers indicate receiving financial assistance to buy spare parts stock in 2014 (up from 41% in 2013).

• Nearly half (48%) of dealers indicate their warranty claims are settled within 15 days (compared with 42% in 2013).

• Warranty labour rates (the hourly rate at which an automaker reimburses the dealership for any work performed under warranty) is reported to be higher this year, with 25% of dealerships reporting warranty labour rates of more than Rs. 300 / hour (up from 18% in 2013).

• Increasing the share of service revenue is one of the ways in which dealers can survive through these tough times. Retaining customers beyond the standard warranty period has always been a challenge for dealerships in India.

Brandwise Results:

Toyota ranks the highest in dealer satisfaction with a score of 925. Toyota performs particularly well in eight of the nine factors. Maruti ranks second with a score of 884, followed by Honda at 869.

So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers-indian-dealer-satisfaction-index.png

NOTE: Included in the study, but not ranked due to a small / insufficient sample size are Audi, BMW, Mercedes, Renault, Skoda and Fiat.
GTO is offline   (26) Thanks Reply With Quote
Old 31st May 2014, 13:44   #2
Senior - BHPian
 
Captain Slow's Avatar
 
Join Date: Mar 2010
Location: Bangalore
Posts: 1,256
Thanked: 650 Times
Default Re: So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers

Not very surprised to see Nisan at the very bottom of the list.

GTO, Is there any data showing how happy are customers with the dealerships ? I am sure Nissian/Skoda will end up at the bottom while Toyota and Maurti end up at the top.
Captain Slow is offline   (3) Thanks Reply With Quote
Old 31st May 2014, 14:05   #3
BHPian
 
Join Date: Sep 2013
Location: Hyderabad
Posts: 959
Thanked: 432 Times
Default Re: So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers

GTO, thanks for sharing the above information.

As captain slow mentioned in the above post, the same agency should have also conducted another survey to measure the satisfaction of customers with their respective dealers.
JoseVijay is offline   Reply With Quote
Old 31st May 2014, 17:17   #4
Distinguished - BHPian
 
libranof1987's Avatar
 
Join Date: Sep 2010
Location: All over!
Posts: 3,731
Thanked: 2,841 Times
Default Re: So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers

Interesting information.

I wonder if this is because of increased penetration in terms of dealer base or a low demand, or perhaps both.

If it's the former, consolidation could probably help.

So many dealers today have dealerships for multiple manufacturers; any idea to what extent they can share infrastructure? To save some cost there.
libranof1987 is offline   Reply With Quote
Old 31st May 2014, 17:17   #5
Distinguished - BHPian
 
smartcat's Avatar
 
Join Date: Jun 2007
Location: Bangalore
Posts: 2,973
Thanked: 11,916 Times
Default Re: So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers

As expected, there is high correlation between how well the company is doing (profitability, sales & market share) and dealership satisfaction. Only Mahindra seems to be an exception.

I guess Honda would've jumped up a couple of places after Amaze, City diesel & Brio launches!
smartcat is online now   (2) Thanks Reply With Quote
Old 31st May 2014, 17:32   #6
Senior - BHPian
 
Mr.Boss's Avatar
 
Join Date: Mar 2011
Location: Chennai
Posts: 1,943
Thanked: 2,397 Times
Default Re: So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers

Adding the Contributing factors

Mr.Boss is offline   (7) Thanks Reply With Quote
Old 31st May 2014, 17:46   #7
Distinguished - BHPian
 
drmohitg's Avatar
 
Join Date: Sep 2010
Location: Delhi
Posts: 4,479
Thanked: 3,624 Times
Default Re: So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers

Interesting thread. Quite a huge difference between the number one and two. Was this also conducted for the luxury brands.
drmohitg is online now   Reply With Quote
Old 1st June 2014, 13:18   #8
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,735
Thanked: 89,266 Times
Default Re: So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers

Quote:
Originally Posted by Captain Slow View Post
GTO, Is there any data showing how happy are customers with the dealerships ?
Quote:
Originally Posted by JoseVijay View Post
As captain slow mentioned in the above post, the same agency should have also conducted another survey to measure the satisfaction of customers with their respective dealers.
Yep, JD has been monitoring after-sales quality since a long time (although I don't agree with their results). Here is one (The "JD Power Study" Thread) of the many threads.

Quote:
Originally Posted by drmohitg View Post
Was this also conducted for the luxury brands.
Included in the study, but not ranked due to a small / insufficient sample size are Audi, BMW, Mercedes, Renault, Skoda and Fiat.
GTO is offline   (1) Thanks Reply With Quote
Old 1st June 2014, 13:44   #9
BHPian
 
Join Date: May 2013
Location: Bangalore
Posts: 324
Thanked: 174 Times
Default Re: So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers

Hi GTO,

Most points mentioned in your post are accurate. In case of Co-Dealers, the lesser preferred dealer is generally struggling for profitability. And yes, with increasing service frequency the revenue from service has also started diminishing, though longer warranty periods ensure that vehicles keep coming to authorized workshops for a longer duration.

But yes, most dealers are living hand to mouth in today's scenario. I am sure most dealers with less than 25-30 vehicle sale every month (in tier 1 cities) will be struggling for profitability.
2000rpm is offline   (3) Thanks Reply With Quote
Old 2nd June 2014, 11:46   #10
BHPian
 
Join Date: Nov 2013
Location: TN-22
Posts: 140
Thanked: 125 Times
Default Re: So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers

Interesting. More than the dealer, I will look for such satisfaction from the service stations. I'm not sure if service stations are included in this survey.

In my opinion, a dealer does not play a "great" part in selecting a car. However, the service quality matters most.

Personally, when one dealer let me down in Chennai, I selected the next one - Bu I did not change my selection of the car.
Srikanthan is offline   (1) Thanks Reply With Quote
Old 2nd June 2014, 14:12   #11
Senior - BHPian
 
Join Date: May 2013
Location: Namma Bengaluru
Posts: 1,225
Thanked: 2,060 Times
Default Re: So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers

A very good insight, thanks for the thread.

Although financial focus, the finding in the survey is pure indication of how brands are doing too. And as rightly pointed out the reasons for higher costs or inability to score profits is largely due to real estate in these metros.

For customers, close proximity to the dealership workshops is an important factor and that probably forces to setup multiple workshops in the close proximity. For example, in south Bangalore Maruti has more than 5 dealer workshops in just a part of Bannerghatta road area viz. Sagar (2), Kalyani, Mandovi, Bimal. And all of these stations occupy large spaces!

It's high time that dealers and automakers put additional effort in innovating more ways to combat the situation. One such example is service at customer's door. The routine service takes no more than 2 hours on an average and a distant workshop can smartly plan their "service rounds" effectively without incurring too much cost on maintaining the costly real estate.

Another area the dealer can focus is attracting more customers than FNGs since literate metro population generally scouts to the FNGs post warranty servicing. This is where they spend more and dealers tend to lose that for many reasons

Nevertheless, lets hope for better year ahead for everyone - the enthusiasts as well as dealers and obvisouly automakers!

Last edited by abirnale : 2nd June 2014 at 14:13.
abirnale is offline   (3) Thanks Reply With Quote
Old 2nd June 2014, 14:58   #12
BHPian
 
latentpotential's Avatar
 
Join Date: Oct 2012
Location: IIM, Ahmedabad
Posts: 502
Thanked: 376 Times
Default Re: So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers

Thanks for the data, it is very interesting, and in some ways can re-affirm or dispense-off opinions one may carry regarding various brands and their attitudes towards our market.

Would it be possible to share the entire pdf document that contains more data on this survey?
latentpotential is offline   Reply With Quote
Old 2nd June 2014, 15:05   #13
BHPian
 
rajeshsundaram's Avatar
 
Join Date: Feb 2007
Location: ERD-CHN-BLR
Posts: 299
Thanked: 452 Times
Default Re: So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers

Mahindra's rating which is below the Industry Average is not surprising for me now. In Anant Car's ASS lobbies, there are posters which talks about "Care" "Service" bla bla blaah, and even Dr.Pawan Goenka features in one of the posters. But still, their ranking is way down.

My experience with Mahindra A.S.S is just average. Most of the time dealers stock less number of parts or have to order and wait for a week. Looks like oils and lubes are the ONLY readily available options in most Mahindra A.S.S.
rajeshsundaram is offline   (2) Thanks Reply With Quote
Old 3rd June 2014, 04:11   #14
Senior - BHPian
 
Soumyajit9's Avatar
 
Join Date: Oct 2012
Location: 10010
Posts: 1,501
Thanked: 1,665 Times
Default Re: So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers

Quote:
Originally Posted by GTO View Post
• Warranty labour rates (the hourly rate at which an automaker reimburses the dealership for any work performed under warranty) is reported to be higher this year, with 25% of dealerships reporting warranty labour rates of more than Rs. 300 / hour (up from 18% in 2013).
Well, this point caught my attention to the most !!

So is that the reason why it takes 5 days for a part to arrive and another 2 days to fix the part into the car ? More specifically, the reason for 2 days to fix the part in the car is evidently clear now !!

Rs 300/hr X 16 Hours (8 hours per day X 2 days) = A lot of money !!

Someone, please correct me if my calculation / working style of a SC is wrong.
Soumyajit9 is offline   Reply With Quote
Old 3rd June 2014, 09:17   #15
BHPian
 
Join Date: Nov 2009
Location: RJ-02,DL,MH-12
Posts: 922
Thanked: 1,081 Times
Default Re: So, how satisfied are Indian Dealerships? JD Powers Survey of 600+ dealers

Quote:
Originally Posted by Soumyajit9 View Post
Well, this point caught my attention to the most !!

So is that the reason why it takes 5 days for a part to arrive and another 2 days to fix the part into the car ? More specifically, the reason for 2 days to fix the part in the car is evidently clear now !!

Rs 300/hr X 16 Hours (8 hours per day X 2 days) = A lot of money !!

Someone, please correct me if my calculation / working style of a SC is wrong.
Nope, the number of hours for part replacement / fixing is fixed by manufacturer and thus your calculation may not hold good.

For example, the single rear shock absorber unit replacement for Verna gets 1 hour labour paid by HMIL which includes removing old one, fixing new one and testing. Bigger jobs like steering assembly replacement gets considerable labour payment by manufacurer (when carried out during warranty) but even that is to the tune of few hours only and will not run into days.

Last edited by i74js : 3rd June 2014 at 09:24.
i74js is online now   (1) Thanks Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Satisfied with purchase on Tele Shopping ? rohan_iitr Shifting gears 2 12th January 2010 11:09
Help needed - bumper replacement in i10 by hyundai - not satisfied kums Modifications & Accessories 13 20th June 2009 00:15
Are u satisfied with the current condition of the Mumbai-Pune expressway ?? bhp Route / Travel Queries 13 20th August 2008 14:18
Baleno : Turbo + Direct Lpg Injection System = V_E_R_Y Satisfied neo_trace Modifications & Accessories 13 29th January 2007 18:48


All times are GMT +5.5. The time now is 16:56.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks