FADA Dealer Satisfaction Study 2021: Kia Motors bags top rank in 4-wheeler mass-market segment
Dealers of PV market remained most satisfied with an average of 720 on a scale of 1,000, three-wheeler segment scored lowest, 610 on a scale of 1,000, among all segments
- Jul 29, 2021,
- Updated Jul 29, 2021 4:15 PM IST
Dealer viability is the biggest concern for auto dealers across all segments of the industry, the Dealer Satisfaction Study 2021 of the Federation of Automobile Dealers Associations (FADA), the apex national body of automobile retail in India, shows. Dealers feel that products, both in terms of quality and range, by and large, meet customers' expectations. While dealers of the PV market remained most satisfied with an average of 720 on a scale of 1,000, the three-wheeler segment scored the lowest, 610 on a scale of 1,000, among all segments.
In the four-wheeler mass-market segment ranking, Kia Motors was ranked on top, with a score of 879 out of 1,000. Kia was followed by MG Motor (778) and Toyota Kirloskar Motor (778). Not only are Kia's dealers satisfied with most hygiene needs, but they are also truly delighted with the product and their business viability, the study shows.
In the 4-wheeler luxury segment ranking, BMW scored the best at 707, followed by Mercedes-Benz (707) and Audi (649). The 2-wheeler segment ranking, Honda Motorcycle & Scooter was tanked at the top with a score of 693, followed by Hero Motocorp (627) and TVS Motor (606).
In the four-wheeler mass-market segment, dealers raised their concerns about OEMs not being receptive to their inputs. In the 4-wheeler luxury segment, the study found that training cost-sharing arrangement by the OEMs was unsatisfactory and OEMs' ability to fulfil vehicle order incorrect specifications and quantity, coupled with non-flexibility to choose workshop equipment, were the cause of major concerns.
In the two-wheeler segment, the biggest concern the study highlighted was OEMs were not open to dealer inputs in terms of improving dealership cost structure. "While issues of concern such as dealership viability, support on sales and after-sales, openness to dealer inputs in decision making and designing long-term policies are fundamental needs, there are clear signs that dealers expect their respective OEMs to go beyond," FADA president Vinkesh Gulati said.
Also read: Ford in trouble, approaches rival automakers to revive India operations
He added there is a need to have technology solutions and analytics to intelligently mine transaction data for business gains. "Also, creating a digital platform to measure the effectiveness of marketing expenditure is reflective of a changing mindset."
FADA secretary and chairman CS Vigneshwar said FADA took over 2,000 samples, the highest ever number that has been used for such a study in India. PremonAsia Founder and CEO Rajeev Lochan said the industry average satisfaction score of 657 indicates that OEMs have significant headroom to improve in meeting the needs of their channel partners, particularly for the two-wheeler and commercial vehicle segments. At the industry level, dealers attach high importance of 27 per cent on business viability, making it a highly critical aspect for OEMs.
Also read: Auto sector rebounds! PV retail sales jump 43% over strong pent-up demand in June
Dealer viability is the biggest concern for auto dealers across all segments of the industry, the Dealer Satisfaction Study 2021 of the Federation of Automobile Dealers Associations (FADA), the apex national body of automobile retail in India, shows. Dealers feel that products, both in terms of quality and range, by and large, meet customers' expectations. While dealers of the PV market remained most satisfied with an average of 720 on a scale of 1,000, the three-wheeler segment scored the lowest, 610 on a scale of 1,000, among all segments.
In the four-wheeler mass-market segment ranking, Kia Motors was ranked on top, with a score of 879 out of 1,000. Kia was followed by MG Motor (778) and Toyota Kirloskar Motor (778). Not only are Kia's dealers satisfied with most hygiene needs, but they are also truly delighted with the product and their business viability, the study shows.
In the 4-wheeler luxury segment ranking, BMW scored the best at 707, followed by Mercedes-Benz (707) and Audi (649). The 2-wheeler segment ranking, Honda Motorcycle & Scooter was tanked at the top with a score of 693, followed by Hero Motocorp (627) and TVS Motor (606).
In the four-wheeler mass-market segment, dealers raised their concerns about OEMs not being receptive to their inputs. In the 4-wheeler luxury segment, the study found that training cost-sharing arrangement by the OEMs was unsatisfactory and OEMs' ability to fulfil vehicle order incorrect specifications and quantity, coupled with non-flexibility to choose workshop equipment, were the cause of major concerns.
In the two-wheeler segment, the biggest concern the study highlighted was OEMs were not open to dealer inputs in terms of improving dealership cost structure. "While issues of concern such as dealership viability, support on sales and after-sales, openness to dealer inputs in decision making and designing long-term policies are fundamental needs, there are clear signs that dealers expect their respective OEMs to go beyond," FADA president Vinkesh Gulati said.
Also read: Ford in trouble, approaches rival automakers to revive India operations
He added there is a need to have technology solutions and analytics to intelligently mine transaction data for business gains. "Also, creating a digital platform to measure the effectiveness of marketing expenditure is reflective of a changing mindset."
FADA secretary and chairman CS Vigneshwar said FADA took over 2,000 samples, the highest ever number that has been used for such a study in India. PremonAsia Founder and CEO Rajeev Lochan said the industry average satisfaction score of 657 indicates that OEMs have significant headroom to improve in meeting the needs of their channel partners, particularly for the two-wheeler and commercial vehicle segments. At the industry level, dealers attach high importance of 27 per cent on business viability, making it a highly critical aspect for OEMs.
Also read: Auto sector rebounds! PV retail sales jump 43% over strong pent-up demand in June