Home » News » Auto » Dealer Viability a Concern as Kia Motors, Honda 2W Lead Satisfaction Ratings by FADA
3-MIN READ

Dealer Viability a Concern as Kia Motors, Honda 2W Lead Satisfaction Ratings by FADA

Car parked in a parking lot. Image for representation.

Car parked in a parking lot. Image for representation.

While Dealers of mass market PV remained most satisfied with an average of 720 on a scale of 1,000, 3-Wheeler segment scored the lowest, 610 on a scale of 1,000 amongst all segments.

Federation of Automobile Dealers Associations (FADA) has announced the outcome of Dealer Satisfaction Study 2021 results which was undertaken in association with PremonAsia, a consumer-insight led consulting & advisory firm based out of Singapore. As per the ratings, dealers are vary of financial and business viability of operating a dealership with 27% voting it as a highly critical aspect where OEMs need to exhibit greater sensitivity, particularly since the current satisfaction level on this factor is weak.

However, dealers also feel that products, both in terms of quality and range by and large meets the expectations of end customers’ current needs though its evolution in the future will require more frequent refresh. While Dealers of mass market PV remained most satisfied with an average of 720 on a scale of 1,000, 3-Wheeler segment scored the lowest, 610 on a scale of 1,000 amongst all segments.

In 4-Wheeler Mass Market Segment, while Dealers raised their concerns about OEMs not being receptive to their inputs for keeping viable and long term policy in mind, they also said that OEMs provide adequate training for frontline sales & service staff thus keeping the end customer satisfied.

Kia leads the Dealer Satisfaction Rating 2021 with 879 points, well ahead of industry average followed by MG Motor, both of which are new entrant in the country. Toyota dealers are as happy as MG Motor with a tie at the 2nd spot. Honda dealers are most unsatisfied as per the list.

RELATED NEWS

In 4-Wheeler Luxury Segment, the study found that training cost sharing arrangement by the OEMs was unsatisfactory and OEMs ability to fulfil vehicle order in correct specifications and quantity coupled with non-flexibility to choose workshop equipment’s were cause of major concerns. The study also found that extended warranty policy & customer handling process were at satisfactory levels.

Both BMW and Mercedes-Benz shared top spots with marginal high rating as compared to industry average. Land Rover dealers are most unsatisfied in luxury ratings.

Commenting on the release of the study, FADA President, Mr. Vinkesh Gulati said, “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. For example, 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.”

In 2-Wheeler Segment, the biggest concern which the study highlighted was OEMs were not open to Dealer inputs in terms of improving dealership cost structure from viability and policy point of view. Similarly, there was no support from OEMs on buy back of dead stocks of parts. On the positive side, the study found that OEMs were fair in acceptance and rejection of warranty claims.

Honda Two-Wheelers leads the dealer satisfaction index with ratings above industry average and well ahead of Hero Motocorp at the second spot. TVS is at the third spot. Royal Enfield dealers are least satisfied as per the index.

The study for Commercial Vehicle Segment showed that while OEMs need to handhold dealers in improving sales efficiency & controlling cost of sales, they were quite happy about the overall product range and quality of fully built vehicles. Dealers were also satisfied as they could directly communicate with OEMs senior leadership team for discussing business viability and long term policies.

While VECV leads the satisfaction index in commercial vehicle ratings, followed by Mahindra and Tata Motors, Force Motors is at the last spot.

Read all the Latest News, Breaking News and Coronavirus News here

first published:July 30, 2021, 10:58 IST