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The Federation of Automobile Dealers Associations (FADA), the apex body championing the interests of India's Automobile Retail Sector, in collaboration with Frost & Sullivan, the Growth Pipeline Company, has announced the results of the 2024 Customer Experience Index (CEI), an annual study.


Study Background:


The primary objective of this comprehensive study was to assess and quantify customer experience across sales, after-sales service and product quality in the passenger vehicle category. The study highlights the key drivers of experience, providing valuable insights for the automotive industry.


The respondents were carefully selected to represent a broad demographic of vehicle owners. The profile includes males and females aged 18 years and above, all of whom are primary users and primary or occasional drivers of personally owned vehicles. Importantly, the primary vehicle in question must be 'new' at the time of acquisition and the respondents must have been involved in the decision-making process for its purchase.


The study further categorized respondents into two distinct groups:


vehicle bought from an authorized dealer within last 12 months (May’23 to May’24) for the "Sales & Product Quality" and
those who purchased their vehicle between 2021 and 2023, having availed after-sales services within the last six months, for the "After-Sales Service" category.


CEI was conducted with a substantial sample size of 8,685 respondents. The sample was divided into two primary categories:


3,683 respondents provided insights into their experiences related to "Sales & Product Quality,"

5,002 respondents contributed to the "After-Sales Service" category.


To further refine the analysis, the sample was stratified by market tier, with:

3,951 respondents from Tier 1 cities,

3,925 from Tier 2 cities, and

809 from Tier 3 cities.


Key Highlights:

Overall Customer Experience Index (CEI) considers 97 attributes across Sales, Product and After-sales experiences, each having a weightage of 25%, 25% and 50%, respectively.

Mass Market Brands: Kia leads the mass market segment with a score of 45.84
Luxury Brands: Audi tops the luxury segment with a score of 48.93

Sales Experience Index (SEI)

Mass Market Brands: Kia ranks highest in sales experience with a score of 52.52 scoring most in test drive experience, responsiveness of sales team, customer relationship management, to name a few.

Luxury Brands: BMW leads with a score of 52.52, ranking highest in availability of roadside assistance, online advertisements, amongst others

Product Experience Index (PEI)

Mass Market Brands: Toyota scores highest in product experience with 45.40. Good resale value, gearshift quality, quality of lights, contributed the most to its ranking.
Luxury Brands: Audi leads with a score of 46.35, ranking highest in vehicle suspension quality, engine power, amongst others.
 
After-Sales Experience Index (ASEI)

Mass Market Brands: Kia ranks highest in after-sales experience with a score of 44.15. It ranked highest in condition of the car delivered, technical knowledge of the after-sales team, responsiveness of the after-sales team, amongst others.

Luxury Brands: Audi leads with a score of 50.51, ranking highest in ease of accessing the team, technical knowledge of the after-sales team, amongst others.

Mr. Vinkesh Gulati, Chairman – FADA Academy & Research commented, “The findings from the Customer Experience Index (CEI) study provides a clear picture of what customers prioritize and value most in their automotive journey. It’s evident that aspects like service, comfort and reliability are at the forefront of customers' minds. These are the core areas where automotive brands are succeeding in meeting customer expectations.

Customers are particularly pleased with the responsiveness and knowledge of sales teams, the performance and reliability of their vehicles and the quality of after-sales workmanship. However, while these areas are currently excelling, they also set a high standard that must be maintained and continuously improved. Notably, customers are increasingly expecting greater reach and accessibility from automotive brands, rather than investing in large infrastructure setups. As we move forward, it is crucial for the industry to not only uphold these strengths but also address the underlying areas of improvement to ensure a consistently exceptional customer experience.”

Mr. Shylesh Narayanan, Country Head, Frost & Sullivan India, added, "The Customer Experience Index (CEI), developed in collaboration with FADA, is unique due to its unbiased random sampling which reflects customer perspectives. This data-driven analysis highlights critical areas for OEMs and dealers to refine their strategies and adapt to evolving customer expectations. This index will also help guide the industry towards a future where brands are distinguished by their feature-rich offerings, exceptional service, and reliability, ultimately fostering superior customer experiences and therefore, loyalty.”

The voice of the customer highlighted the key factors that resonate most with vehicle owners:

"Service" stands out as a dominant priority, indicating that customers place a high value on the quality and reliability of service experiences.
Other important aspects include "Comfortable," "Mileage," and "Features," emphasizing that customers seek vehicles that are not only efficient but also provide a comfortable and well-equipped driving experience.

Words like "Innovative," "Technology," and "Reliable" suggest that customers appreciate cutting-edge advancements and dependability in their vehicles.
The focus on "Brand" and "Premium" highlights the importance of brand reputation and perceived value, while "Affordable" and "Popular" indicate that customers are also mindful of cost and market trends.
 
Overall, the voice of the customer calls for a balanced blend of performance, innovation and service excellence in the automotive sector.

The study also identified key factors or delighters, within each category that significantly enhance customer satisfaction:

Sales Delighters: Among the top delighters in the sales category are the test-drive experience, which allows customers to evaluate the vehicle’s fit and performance firsthand and the responsiveness and knowledge of the sales team, which fosters trust and confidence throughout the purchasing process. Additionally, the ease of transaction and payment processes contributes to a seamless and stress-free buying experience.

Product Delighters: In terms of product attributes, performance and reliability stand out as top priorities, ensuring the vehicle meets expectations in terms of power and dependability. Seat comfort and legroom are also critical, providing a comfortable and enjoyable driving experience. Furthermore, fuel efficiency and good resale value are essential considerations, offering both financial benefits and long-term satisfaction.

After-Sales Delighters: The after-sales experience is enhanced by high workmanship quality, ensuring service and repairs are completed to the highest standards. The ease of appointment scheduling and effective post-service follow-up further improve customer satisfaction by providing convenience and reassurance. Additionally, fair pricing and a straightforward complaint registration process contribute to a transparent and supportive after-sales environment.

Kia leads mass market segment; Audi tops luxury segment: Report

Bajaj Auto has posted an increase of 30% in domestic sales with 2.08 lakh units sold in August 2024. Last year, the company's sales stood at 1.60 lakh in the same month, the company said in a BSE filing on Monday. However, the company saw a marginal rise in domestic sales of its commercial vehicles to 45,206 units in August 2024 from 44,280 in August 2023.

Overall, the domestic sales of two-wheeler and commercial vehicles of the company surged by 24% to 2.53 lakh in August 2024 as against 2.05 lakh in the same month last year.

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In a BSE filing, Bajaj Auto recorded an increase of 14% in domestic two-wheeler sales to 9.59 lakh units between April and August 2024 from Rs 8.45 lakh units in the same period last year.

The company's commercial exports climbed by 15% to 74,913 units from April to August 2024 as against 65,423 units in the same duration in 2023. 

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In the recently held Bajaj Auto's Q1 FY25 results conference call, the company's Executive Director Rakesh Sharma said that the revenue from operations grew by 16% to finish under Rs 12,000 crore. The consolidated net profit stood at Rs 1,941.79 crore between April-June 2024. The company said its domestic, business registered its ninth successive quarter of double-digit growth driven by growth across motorcycles, commercial vehicles, and electric scooters portfolio.

Commercial Vehicles delivered over 100,000 units in a quarter for the fourth time in a row, the company added.

Bajaj Auto's domestic 2-wheeler sales up by 30% in 12 months

Maruti Suzuki, on Monday, slashed the prices of select variants of Alto K10 and S-Presso, effective on 2 September 2024. In a BSE filing, the automaker revealed that the price of S-Presso LXI Petrol has been reduced by Rs 2,000 and the cost of Alto K10 VXI Petrol has been reduced by Rs 6,500. 


Notably, MSI recalled 2,555 Alto K10 vehicles in August this year due to a possible defect in the "Steering Gear Box Assembly". The company said the defect may affect the vehicle steerability in a rare case.

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"Out of abundant caution, customers of the affected vehicles are advised not to drive or use the vehicle till the Part is replaced," Maruti Suzuki said.


In June this year, MSI reduced prices for car models in its Auto Gear Shift (AGS) lineup, such as Alto K10, S-Presso, Celerio, Wagon-R, Swift, Dzire, Baleno, Fronx, and Ignis. 

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At that time, Maruti Suzuki informed exchanges that it had reduced the prices of its AGS variants by Rs 5,000.

The automaker also cut the prices of its 'mini and compact' cars segment to Rs 4.99 lakh in June as demand dwindled. 


According to the official data by Maruti Suzuki, WagonR crossed cumulative domestic sales of 30 lakh units in FY24; Dzire posted sales of more than 20 lakh units while Alto reported sales of 40 lakh plus units in the previous fiscal year.

Ahead of festive season, Maruti Suzuki reduces prices of Alto K10,  S-Presso

Honda Motorcycle and Scooter India has surpassed Hero MotoCorp in the domestic wholesale segment as per the dispatch data by the Society of Indian Automobile Manufacturers (Siam). However, in the retail sales of the two-wheeler vehicles, Hero has remained the king. 

As per the Siam data, Honda registered more than 18.53 lakh wholesale despatches in the April-July period, while Hero logged over 18.31 lakh units in the same period.

<a href="https://www.storyboard18.com/brand-marketing/honda-cars-india-registers-total-sales-of-7334-units-in-july24-38666.htm">Honda Cars India registers total sales of 7,334 units in July’24</a>

Meanwhile, TVS clocked 10.8 lakh units between April and July 2024, Bajaj wholesale despatches stood at 7.5 lakh and Suzuki 3.5 lakh units in the same period.

According to a report by Times of India, dealers said that Honda's market share has surged due to Honda Shine 100, which has done well in Uttar Pradesh, Rajasthan, and Madhya Pradesh.

<a href="https://www.storyboard18.com/how-it-works/honda-cars-registers-total-sales-of-10867-units-in-april-30519.htm">Honda Cars registers total sales of 10,867 units in April</a>


In terms of retail sales, Hero MotoCorp clocked over 17.5 lakh units in the April-July period compared to 15 lakh units by Honda Motorcycles & Scooters (HMSI). According to the Federation of Automobile Dealers' Association (FADA), the retail market of HMSI has increased from 20% in April to 24.3% in July, while HeroMotoCorp's market share has dropped from just over 33% in April to 29.4% in July.

Honda overtakes Hero MotoCorp in domestic wholesale segment

Hyundai Motor India Limited (HMIL) total sales declined by 3.21% to 64,563 units in July 2024 as compared to 66,701 units for the corresponding period in the previous year.

On the contrary, the automaker, recorded a 4.30% growth in total sales to 4.50 lakh units between January and July this year. In 2023, the company's total sales between January-July stood at 4.31 lakh units

The company's domestic sales declined by 3.33% to 49,013 units in July 2024 as compared to 50,701 units sold in the same month last year.

The export also witnessed a decline of 2.81% YoY to 15,550 units in July 2024 from 16,000 units.

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The Indian subsidiary of the South Korean car manufacturer said that SUVs accounted for 66.6% of HMIL domestic sales in the current calendar year as of July 31, 2024. 

Hyundai Creta achieved sales of 1 Lakh units till July since its launch in January this year, the company said.

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The new Creta also registered " highest ever monthly domestic sales of 17,350 units" in July 2024, HMIL added.

“We have posted an overall sales growth of 4.31% Year-on-Year in the period of January to July 2024. SUVs continue to demonstrate a robust contribution, accounting for 66.6% of total HMIL domestic sales. The new Hyundai CRETA achieved key milestones of 1 Lakh unit sales till July 2024, while also achieving highest ever monthly domestic sales of 17,350 units in July 2024," Tarun Garg, Whole-time Director and Chief Operating Officer at Hyundai Motors India Ltd said.

Hyundai's domestic sales dip 3.33% in July, exports down 2.81% YoY

Despite a temporary slowdown, the Battery Electric Vehicles (EVs) sales are likely to hit the 10 million milestone this year, according to a report by Counterpoint. 

The report, "Global Passenger Vehicle Forecast" mentioned that growth in battery EVs will be supported by the revamping of the production process, partnerships with the manufacturers, and bolstering the supply chain.

<a href="https://www.storyboard18.com/quantum-brief/electric-vehicles-hit-15-percent-of-bmws-total-sales-across-the-world-26495.htm">Electric vehicles hit 15 percent of BMW's total sales across the world</a>

At present, China is the dominant force in the 'battery electric vehicle' market, with sales projected to be 4 times that of the US market in 2024, the research projected. 

Besides, China will maintain more than 50% share of global EV sales until 2027 and is expected to register more sales than the US and Europe combined in 2030. 

<a href="https://www.storyboard18.com/how-it-works/ea-sales-in-india-jumped-49-25-percent-year-on-year-to-1529947-units-in-2023-20005.htm">Electric vehicle sales zooms 49 percent to 1.52 million units in 2023</a>

"The EU’s new tariff rates for Chinese EVs aim to level the playing field for European EV manufacturers, which are struggling to compete with lower-priced Chinese imports. These tariffs might push Chinese automakers towards emerging markets like the Middle East and Africa, Latin America, Southeast Asia, Australia, and New Zealand. The outcome of EU-China talks, especially with Germany’s opposition, will shape future EV market dynamics, with Europe and the US driving growth from 2025 onwards," Liz Lee, Associate Director at Counterpoint said.


However, from 2025 onwards, Europe and the US will start emerging as a major growth driver in this segment, the research added.

The Counterpoint report predicted that China's BYD market share would overtake Tesla's EVs in 2024. 


However, research analyst Abhik Mukherjee said that automakers like Volkswagen, Ford, and General Motors are positioning themselves to compete with the market leaders by revamping supply chains and producing affordable EV prices below $35,000. 

The research also predicted that hybrid vehicles, including plug-in hybrid electric vehicles and hybrid electric vehicles, will continue to dominate the electrified segment in the near term.

EV sales may hit 10 million in 2024; China likely to remain dominant force until 2027: Report

Nissan Motor India has named Saurabh Vatsa as its Managing Director (MD), effective from April 1, 2024. Previously serving as the Deputy Managing Director, Vatsa was appointed to this role on January 15 of this year. In his new capacity as MD, Vatsa will report directly to Frank Torres, President at Nissan India Operations and Region Divisional Vice President of Business Transformation (AMIEO).


Vatsa succeeds incumbent Managing Director Rakesh Srivastava who retires this year on March 31, 2024.


“Rakesh has been a key member of our India leadership team. We thank Rakesh for his exceptional leadership, tenacity, and wisdom in leading the company through turbulent times including the COVID 19 pandemic while contributing to the turnaround of India business operations. As we transition into a new phase of the transformation plan for India, we are assured of having an experienced and insightful leader in Saurabh Vatsa. He will build on the foundation laid by Rakesh and spearhead our next phase of growth as we prepare to deliver on the MTP and enter FY24,” said Torres.



“I am excited to be part of Nissan at this crucial juncture of our growth plans in India. India presents a complex and challenging market, and Nissan, with its global brand stature, rich legacy, and cutting-edge technology is poised to deliver on this promise. We are constantly pushing the boundaries on ‘what’s next’ and our daring spirit of innovation is what sets us apart. We intend to deliver on the ongoing business transformation plan in preparation of the MTP which includes a new product portfolio and enhanced customer centricity,” Vatsa said.

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