Toyota followed by Maruti on top in JD Power dealer satisfaction study

The study finds the automotive sector reflective of growth. Delays and discrepancies also at an all-time low among authorised dealerships.

By: | Published: May 26, 2017 5:33 PM

Dealerships are the first point of contact between any manufacturer and their corresponding customers. JD Powers recently conducted a study of authorised dealerships across the country. The study revealed that more than half of all passenger, two-wheeler and commercial dealerships expect to turn a profit this year as the ownership sentiment in the country continues to improve.

The study shows that 58% of all passenger vehicle dealerships in India expect to show a profit at the end of this financial year. Up almost ten percent from last year's 49%. Only 15% of dealers anticipate a loss. This is the lowest ever figure in the history of the study. Aside from the financial support automakers will now be extending support to facilitate better systems, resulting in fewer delays and discrepancies.

“It is encouraging to see that automakers are dedicated to enhancing their systems so that information can be relayed without error or delay,” said Shantanu Nandi Majumdar, director at J.D. Power. “With the overall Indian economy and the automotive industry on the road to recovery, manufacturers that are committed to extending this support are more likely to develop stronger ties with their franchise.”

The two-wheeler segment also grew over the last year, with most dealerships expecting to come out on top of the profit-loss table. Although the study also reflects that dealers wish to have better support from the manufacturer.

“As 2017-18 gears up for new model launches, facelifts and new variants across the three vehicle segments, savvy and effective marketing strategies will be the key to higher sales and enhanced brand image,” Majumdar said. “With more and more touch points in the purchase journey becoming digital, the next few years are likely to see a sharp rise in digital marketing spend by manufacturers.”

The focus of the study, however, reveals the rankings for dealer satisfaction across manufacturers. Again it was Toyota who scored the maximum points with a total of 938 marks (out of a possible 1000), this puts Toyota on top for the seventh year in succession. Maruti Suzuki ranks second with a score of 920, followed by Renault with 914.
Royal Enfield, with a score 868, ranks highest in dealer satisfaction among manufacturers of two-wheelers, followed by TVS at 834. Honda ranks third with 808.

Also Read: Majority of people do not trust self-driving cars, except millennials: JD Power study

In the commercial vehicle category, Mahindra ranks highest in dealer satisfaction with a score of 890. Ashok Leyland ranks second with 801, followed by Tata with 777.

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