Overall level of service declines in India’s luxury car segment

Satisfaction with the overall vehicle service process among luxury car owners in India has dropped significantly year over year, according to the JD Power 2016 India Customer Service Index (CSI) study luxury segment, released today.

The overall satisfaction with the after-sales process is 35 points lower in 2016 than in last year’s study (801 vs 836, respectively, on a 1,000-point scale). Vehicle service processes that show the greatest year-over-year decline are performing a pre-service inspection of the vehicle (86% vs 90%, respectively); providing an estimate before service (74% vs 88%); and reviewing the completed work (89% vs 91%).

Commenting on the results, Mohit Arora, executive director, JD Power Singapore said, “Given the significantly high cost of service for luxury vehicles in India, customers want to be kept updated about the scope of the work and an estimate of the charges. Failure to follow through on these actions results in an adverse perception of the workshop’s performance.”

Additional findings of the study

- Customers Prefer Familiarity and Proximity: More than 2 in 5 (42%) luxury vehicle owners prefer to have their car serviced at the dealership where they bought it or at a dealership within a convenient distance.

- Customers More Sensitive about Service Processes: Evenwith the highest implementation rates of all 22 process standards, overall satisfaction drops by 37 points from 2015, indicating heightened customer expectations in the marketplace.

- Dealers Can Improve Customer Engagement after the Service Visit: More than 2 in 5 (43%) customers received a follow-up call from the dealership, a drop of 24% from 2015. Overall satisfaction among these customers is 831 points, which is 49 points higher than among those who did not receive a follow-up call.

Study Rankings

BMW ranks highest in luxury vehicle customer service with a score of 815 points. BMW performs particularly well in the vehicle pick-up factor. Mercedes-Benz ranks second with a score of 805 points.

The India Customer Service Index Study, now in its fourth year, measures satisfaction among luxury vehicle owners who visited an authorized dealership service center for maintenance or repair work within the first 12-24 months of vehicle ownership. The study measures overall satisfaction in five factors (listed in order of importance): service quality (43%); vehicle pick-up (17%); service advisor (14%); service facility (14%); and service initiation (11%).

The 2016 study is based on responses from 225 vehicle owners in the luxury segment who received delivery of their new vehicle between May 2014 and August 2015, and took their vehicle for service to an authorized dealer or service center between October 2015 and August 2016. The study was fielded between May and August 2016.