| "The industry witnesses an improvement on all
areas of customer ownership experience except sales satisfaction,"
said TNS Automotive general manager (Asia Pacific) Rajeev Lochan.
"Performance and design, brand image, and after-sales are the
three most improved aspects for the industry. The decline in sales
satisfaction can partly be attributed to the increasing sales volume,
indicating the difficulty in managing customer expectations in a growing
market," he added.
While the industry has improved overall, the customer expectations
across all study components too have increased. The 2003 study had
identified performance and design, after-sales, and cost of ownership
as key hidden opportunities where the importance has strengthened
even further this year.
In addition to the customer evaluations on various aspects of their
ownership experience, TNS has been tracking the industry trends
since 2002. One key finding emerging is the shortened cycle-time
for replacement/ additional car purchase. Compared to a cycle-time
of close to five years in 2002, the 2004 study observes a significant
reduction to a cycle-time of less than four and a half years. Some
of the other key trends are:
- Increase in owners purchasing additional/ replacement cars -
64 per cent additional/ replacement buyers in 2004 compared to
49 per cent in 2002. This shift is significant in north and west
compared to south India.
- High preference for four-door sedan in the future - among those
decided on the future purchase, 52 per cent indicate a preference
for four-door sedan.
- Increase in budget for next car - among those decided on the
future purchase, the average budget is close to Rs 700,000 (Rs
625,000 in 2003).
- Nearly one-fifth of motorcycle owners (basis: TNS' motorcycle
study) indicate a preference for upgrading to cars with a budget
ranging from Rs 200,000 to Rs 400,000.
- Makes like Honda, Toyota, and General Motors enjoy a high mind-share
among future additional/ replacement buyers. Small car manufacturers
like Maruti and Tata Motors are high on the preference for future
up-graders from motorcycles, while Hyundai finds a balance between
the two groups.
"These trends clearly indicate that the combination of a shortened
replacement cycle-time, increase in upwardly mobile multi-car households,
and up-graders from motorcycle owners is and will continue to fuel
the double-digit growth in the car industry," says Lochan.
"Small car manufacturers will largely benefit from the rapidly
growing base of motorcycle owners, while midsize car makes like
Honda are strongly placed to capitalise from the shortened cycle-time
among future replacement/ additional car buyers," he added.
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