J.D. Power Study Shows Vehicle Manufacturing Quality Significantly Improves Over Past 5 Years
New Delhi: 30 November 2015 - New-vehicle quality in India has improved significantly over the past five years, specifically in areas pertaining to defects and malfunctions, according to the J.D. Power 2015 India Initial Quality StudySM(IQS),released today.
The study, now in its 19th year, measures problems owners experience with their new vehicle during the first two to six months of ownership and examines more than 200 problem symptoms covering eight vehicle categories (listed in order of frequency of reported problems): engine and transmission; HVAC; driving experience; vehicle exterior; features, controls and displays; vehicle interior; seats; and audio, entertainment and navigation. All problems are summarized as the number of problems per 100 vehicles (PP100), with a lower PP100 score indicating a lower incidenceof problems and higher initial quality.
The industry averages 96 PP100 in 2015, which is 22 PP100 fewer than in 2011. Problems related to defects/ malfunctions account for 52 of the total PP100, a 26 PP100 decline since 2011. Design-related problems, such as features difficult to use and excessive fuel consumption,are at 36 PP100 in 2015, down marginally from 38 PP100 in 2011.
"The industry overall has made significant strides in improving the quality of vehicles, dramatically reducing defects and malfunctions," said Mohit Arora, executive director, J.D. Power, Singapore. "This clearly demonstrates the manufacturing capabilities of the automakers in India."
Arora noted that reliability, styling and quality are among the top purchase decision factors when selecting a vehicle, and problems experienced in the first six months of ownershipcan affect repurchase behavior. "These early problems can set the tone for the entire ownership period and still have an effect years later when consumers replace their vehicle,"Arora said. "Therefore, it would beprudent for automakers to focus on quality, specifically reducing design-related problems, to deliver a best-in-class vehicle ownership experience and improve customer loyalty and advocacy."
- When compared with 2014, the improvement on high-volume models—the Eon with 41 fewer problems and the Grand i10 with 34 fewer problems—has contributed to the overall Hyundai performance in 2015.Additionally, the newly launched Hyundai Elite i20 posts a segment-leading performance with 61 PP100.
- The premium midsize and MUV/ MPV segmentseach improve by 30 PP100year over year, whilethe upper compact segment improves by 22 PP100.
- Quality improves across all categories since 2011 except HVAC, which posts a 5 PP100 increase during the same timeframe.
- Owners who receive an explanation of their vehicle's features at the time of purchase report fewer problems than those who do not receive an explanation (93 PP100 vs. 160 PP100, respectively).
- Vehicle quality builds advocacy. For example, among vehicle owners who experience fewer problems than expected, 71% saythey "definitely would" recommend their model to family and friends, while only 34% of thosewho experience more problems than expectedsay they "definitely would" recommend their vehicle to others.
2015 India Initial Quality Study Rankings
Hyundai receivesthree model-level awards. The Hyundai Eon ranks highest in the entry compact segment with 78 PP100;the Hyundai i10 ranks highest in the compact segment with 83 PP100;and the debutant Hyundai Elite i20/ Active ranks highest in the premium compact segment with 61 PP100.
Philippines, Taiwan, Thailand and Vietnam. Information regarding J.D. Power and its products can be accessed through the Internet at india.jdpower.com.
Honda and Toyota each receivetwo model-level awards. The Honda Brio ranks highest in the upper compact segment with 41 PP100, and the Honda City ranks highest in the midsize segment with 68 PP100. The Toyota Etios ranks highest in the entry midsize segment with 82 PP100, and the Toyota Innova ranks highest in the MUV/ MPV segment with 44 PP100.
The Ford Ecosport ranks highest in the SUV segment with 75 PP100.
The 2015 India Initial Quality Study (IQS) is based on evaluations from 8,438 vehicle owners who purchased a new vehicle between November 2014 and July 2015. The study includes 69 vehicle models from 17 makes. The study was fielded from May 2015 to September 2015 in 30 cities across India.
About J.D. Power in the Asia Pacific Region
J.D. Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding J.D. Power and its products can be accessed through the Internet at asean-oceania.jdpower.com.