Maruti Suzuki, Honda best at keeping customers happy, Tata Motors at No. 3: JD Power

As per the latest JD Power 2016 India Customer Service Index (CSI) study of mass market passenger vehicles released today, Honda Cars India and Maruti Suzuki have been ranked highest in satisfaction, in a tie, each with a score of 901.

While Maruti Suzuki holds this position for the 17th consecutive year, Honda Cars India ranks highest for the first time. Maruti Suzuki performs well across all factors while Honda shows strong improvement across all factors, with the greatest improvements in service initiation and service quality. Hyundai Motor India and Tata Motors rank third in a tie at 888, and are the most improved nameplates in the study.
The study findings reveal that even as carmakers collectively have improved their aftersales service satisfaction for the eighth consecutive year in India, satisfaction levels and service consistency vary greatly across regions.

The 2016 India CSI study is based on responses from 7,843 new-vehicle owners who purchased their vehicle between May 2014 and August 2015. The study was fielded from May through August 2016.

Overall customer satisfaction levels up

Overall service satisfaction in the mass market segment in India improves by 14 points to 880 on a 1,000-point scale in 2016 from 866 in 2015. Overall satisfaction in the West region is 900, while overall satisfaction in the North region is 857.

Strong differences in customer behaviour, preferences and expectations of their aftersales experiences contribute to the substantial disparity in the regional scores. For example, 82% of vehicle owners in the West region schedule an appointment for their service visit, while only 55% of customers in the North region do so, affecting dealers’ ability to effectively manage unscheduled workload and maximise throughput. Additionally, owners in North India drive their vehicles an average of 11% more than those in the other three regions in the first 12-24 months of ownership, indicating that dealers in the North region have to account for more wear and tear issues when customers bring their cars in for service.

“In an astoundingly diverse market like India where every region and state has its own unique characteristics and needs, dealers need to capitalise on every customer interaction opportunity to develop points of differentiation and deliver on those expectations,” said Mohit Arora, executive director at JD Power. “By being attuned to the differing customer needs across the country, dealerships can continuously adapt their service processes to consistently deliver a superior customer experience.”

Dealer communication improving

The study finds that dealers are improving in their communication activities with their customers at every service juncture, and that is having a positive impact on overall satisfaction. Nearly nine in 10 (89%) customers say they were reminded by the dealership about their vehicle service, an increase from 86% in 2015.

Additionally, 93% of customers say their service advisor ensured that they fully understood the scope of work being performed on their vehicle, up from 90% in 2015. Following their service, 89% of customers say they were informed about when to schedule the next visit, up from 83% in 2015. Overall satisfaction among customers who receive all three of these communications is 899, compared with 818 among those who do not receive such communications from their dealers.

Interview: Maruti's service head, Pankaj Narula, reveals what it takes to be numero uno every year

“Dealers are at the frontline of interacting with customers and hence represent the automotive brand that they carry,” said Kaustav Roy, director at JD Power. “It’s critical that every communication milestone is handled properly. Any gap in communication may have the unintended effect of lowering satisfaction, as well as customer loyalty, and the negative impact may be magnified when it gets passed on through word of mouth.”

Among customers who are highly satisfied with their dealer service (overall satisfaction scores of 980 and above), 92% say they “definitely would” revisit their service dealer for post-warranty service, compared with only 44% of dissatisfied customers (818 or lower). Furthermore, 93% of highly satisfied service customers say they “definitely would” recommend their service dealer to family and friends. In contrast, only 50% of dissatisfied customers intend to recommend their dealer.

Additional findings of the study

Inconsistent execution of service standards across regions: The study identifies 22 service standards that can positively impact the overall customer experience. More than one-third (35%) of customers in the South region indicate that their dealer implemented all 22 standards, compared with only 19% of customers in the North region.

Customers appreciate a clean car: The percentage of customers who indicate that their vehicle was returned washed and vacuumed has increased by 11 percentage points to 89%, compared with 78% in 2015. This action improves overall satisfaction by 9 index points above industry average.

Now in its 20th year, the CSI study measures new-vehicle owner satisfaction with the aftersales service process by examining dealership performance in five factors (listed in order of importance): service quality; vehicle pick-up; service advisor; service facility; and service initiation. The study examines service satisfaction in the mass market segment. Satisfaction is calculated on a 1,000-point scale.

More from JD Power:

- Japanese carmakers top India sales satisfaction study

- Indian cars now sport improved build quality