Business Daily from THE HINDU group of publications Friday, Dec 15, 2006 ePaper |
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Industry & Economy
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Cars Marketing - Standards & Benchmarks Web Extras - Marketing Research Gap narrowing in initial quality of car models: Study Our Bureau
Mumbai , Dec 14 Honda City, Honda Civic, Ford Ikon, Maruti Zen and Toyota Innova rank highest in initial quality in their respective segments, according to the JD Power Asia Pacific 2006 India Initial Quality Study (IQS). The gap in initial quality between the highest- and lowest-performing new models has narrowed considerably during the past decade, serving as a reflection of the overall quality improvements in the industry, the study said. The study measures new vehicle quality in the first 2-6 months of ownership based on 135 problem symptoms. Overall performance is summarised by problems experienced per 100 vehicles (PP100), with lower scores reflecting better quality performance. Each problem symptom measured is classified into one of nine IQS categories: ride, handling and braking; features and controls; seats; heating, ventilation and cooling (HVAC); sound system; vehicle exterior; vehicle interior; transmission; and engine. Since the study's inception in 1997, the gap in initial quality between the highest- and lowest-ranked models has declined from 572 PP100 to 208 PP100 in 2006 - 64 per cent decrease in the PP100 gap. The study has found that excessive fuel consumption remains the most frequently reported problem in the industry. The number of problems reported for excessive fuel consumption is significantly higher among owners who indicate that the actual fuel efficiency was below what was indicated by their dealer. "Across all vehicle segments, dealers will sometimes exaggerate a vehicle's level of fuel efficiency, thereby raising customer expectations for the vehicle's performance," said Singapore-based Mr Mohit Arora, Director (India), JD Power Asia Pacific. "However, this only sets the stage for low satisfaction levels when the vehicle does not live up to customer expectations. "When customers inquire about a vehicle's fuel economy, it is imperative for manufacturers and dealers to set realistic product performance expectations to mitigate any negativity in the event of under-performance in this critical measure." Additionally, experienced vehicle buyers in general are more discerning and report an average of 21 PP100 more than first-time buyers. The Maruti Zen ranks highest in the compact car segment with a score of 84 PP100, followed by the Hyundai Santro (136 PP100). In the entry midsize car segment, the Ford Ikon leads with 97 PP100, regaining the top ranking after four years, followed by the Maruti Esteem (107 PP100), improving its year-over-year performance by 37 PP100.
The Honda City leads the midsize car segment with a score of 83 PP100. Included in the study for the first time, is the Honda Civic that ranks highest in the premium midsize car segment and recording the fewest problems in the industry at 60 PP100.
In the utility vehicle super-segment, which combines the MUV, SUV, MPV and van segments, the Toyota Innova (119 PP100) ranks highest, followed by the Chevrolet Tavera (132 PP100). All models in the utility vehicle segment have improved from 2005, making it the industry's most-improved segment. Additionally, with declines in PP100 recorded in all nine IQS categories, the Tata Sumo (156 PP100) emerges as the most improved model in the industry.
The study is based on evaluations from more than 5,000 new-vehicle owners for 37 different models.
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