Toyota continues to lead the satisfaction index in the 2010 TNS DSS study released today. The No. 2 spot was claimed by Hyundai who dramatically improved their ranks over 2008.
The Four Wheeler Dealer Satisfaction Study is an independent study conducted by TNS Automotive, to measure the satisfaction of Passenger Vehicle (Cars, SUVs, MUVs) dealers with their principals.
TNS Automotive has been tracking the dealer-principal relationship since 2002, thus providing a close view of the evolving relationship through the years.
“The study helps manufacturers in assessing the strength of their relationship with their primary customers namely Dealers”, says Pradeep Saxena – Executive Director, TNS Automotive. “In the current system of brand exclusive dealerships, it is all the more important for the existing manufacturers to retain their channel partners in their fold, particularly with some of the largest global companies such as Volkswagen and Nissan entering the Indian market”, he adds further.
The study goes beyond merely providing the satisfaction scores. It is also designed to provide critical feedback to the industry on dealer expectations from the manufacturers. The 2010 DSS attempts to explain these parameters and shows how they have changed over time.
The 2010 TNS Automotive Syndicated Dealer Satisfaction Study was conducted across India covering a wide spectrum of passenger car dealers of all leading manufacturers. Giving due importance to the market diversity, the study coverage included Tier 2 & 3 towns as well, in addition to metros and Tier 1 towns.
The Dealer Principals were requested to rate the performance of the respective manufacturers on a variety of aspects, related to dealership operations, profitability as also the overall relationship with the manufacturer. The study covered 492 dealers across 76 towns in the country.
In 2010, the industry as a whole witnessed an improved relationship with dealer partners. This is reflected in the relationship level across all manufacturers. The TRI*M score has increased from 74 in 2008 to 84 in the current study.
The study also measures the satisfaction with profitability independently. The overall industry performance (measured through the Profitability Index) has improved significantly- from 66 in 2008 to 78 in 2010. Here also, Toyota and Hyundai are the leading companies.
“The study is a reflection of the changing complexion of the passenger car market”, says Pradeep Saxena. With high growth in domestic demand, the importance of delivery processes and fairness in model allocation has increased sharply, posing operational challenges for the manufacturers. Given the scenario of consistent new product launches, satisfaction with product related aspects is high.
Dealer partners have rated the industry performance poorly on relationship aspects such as willingness to solve their problems and taking their suggestions on-board. Another such aspect is fairness in network planning.
One more focus area for the industry is After Sales Service. Dealer Partners have consistently voiced their concerns on availability of spare parts as also service promotions. They also seek a greater support in handling complaints related to OEM fitted items.
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New Delhi, India - 11 January 2011