Indiantelevision.com Team

(22 March 2007 3:00 pm)

MUMBAI: Market information provider, TNS has released the findings of the Dealer Satisfaction Study suggesting that Mahindra & Mahindra dealers are the most satisfied among all passenger cars and UV dealers in the four- wheeler category and Bajaj tops the list in the two-wheeler category.

TNS Automotive senior VP Pradeep Saxena said, "Dealer sentiment is a strong endorsement of the manufacturer's strategy and reflects the confidence in future prospects. For the first time, home grown Indian companies have displaced the multinational automotive companies from the top, ever since TNS Automotive started measuring the Dealer Satisfaction in India way back in 2002. This is a reflection of progress made by Indian manufacturers in developing a strategy to keep their dealers motivated ".

Pradeep adds, "Dealers feel that manufacturers are not concerned about their profitability and there are some sore areas like Order and Delivery delays, Sales & Marketing support, relationship with the sales staff etc. Two wheeler dealers have shown concern towards fairness of franchisee terms, fairness of reward and recognition and implementation of dealer suggestions."

Dealers being independent business owners have the innate desire to deal with the top management in their principle organizations. Whereas Hero Honda is unable to meet these expectations, TVS is meeting these moderately. In four wheelers Maruti meets this moderately but Tata Motors meets it well.

According to the study, the enhanced satisfaction of Mahindra dealerships is also driven by the recent new alliances that are propelling the company in the league of passenger car business. This is a total shift for the organization from its traditional image of utility vehicle maker. Similarly for Bajaj, the sheer performance of all the recently launched models has spurred a buoyant mood among their dealers.

The areas where Mahindra dealers are happier compared to four-wheeler dealers at large pertain to timely delivery, fairness of contribution in joint advertising, implementation of dealer suggestions by dealer staff, empowerment and fairness of dealer rewards.

Areas where Bajaj stands out compared to the industry are fairness of contribution in advertising, openness to dealer suggestions, understanding of the competitive scenario and willingness to resolve the dealer grievances. It also stands out on concern for dealer profitability where market leader Hero Honda is seen as weak.

Dealers and end-consumers are the two main stakeholders in automotive business and a manufacturer's marketplace success is driven by its ability to manage expectations of the both. Since all manufacturers realize that automotive dealers are an interface between them and their customers, the study claims to bear a high level of relevance and interest among them.

TNS states that the methodology of the study allows for comparability across time and varied stakeholders. TNS has observed globally that the manufacturers who are able to keep their dealers motivated stand a better chance of achieving a high satisfaction among end customers.

The Dealer Satisfaction Study (DSS) conducted by TNS specialist division, TNS Automotive, is a periodic survey covering the dealers of all major four-wheeler and two wheeler companies in India. The current study has covered more than 900 automotive dealers across the country and is a representation of the dealers' voice. Responses pertain to the key areas of product performance, sales and marketing, after sales and overall manufacturer relationships with dealers.