Hyundai and Tata take first and second position in terms of customers’ aftersales service satisfaction.
The automobile market is encountering an overwhelming slowdown. It has forced many carmakers to reduce production and dealerships to resort to lay-offs. This downturn affects not only the sales record but also the after-sales business as the customers are spending less on after-sales services. And if this trend continues, it will leave an enormous impact on the market.
This reclining trend is reflected in the 2019 India Customer Service Index and it points to customers spending less on each service visit this year. On average, the amount that customers spent on each visit has declined by 10% against last year’s INR 5,600 spent each visit. The decline is even worse within the customer band over 39 years old, with this group alone spending 17 per cent less than last year.
Customers are spending less on aftersales service, according to 2019 India Customer Service Index
This downturn is worrying for every dealership around the country as the benefit from after-sales services contributes to 31 per cent of their total profits while sales only accountz for 25 per cent. With this continuous declining trend, dealerships are in an urgent need to cut down costs. Moreover and ironically, in order to make it out of this situation, dealerships must also offer the best after-sales services.
With regard to the after-sales experience, the JD Power Survey 2019 shows that Hyundai comes out on top with the aftersales service satisfaction point of 903/1000. Taking the second position on the chart is Tata Motors with 870 points. Mahindra, another homegrown car manufacturer, comes the third rank with 863 points. The following positions are occupied by Toyota, Volkswagen, Ford, Nissan, and Datsun. What comes across as most interesting is the absence of Maruti-Suzuki, the biggest car manufacturer in India, on the top spots. As it turns out, Maruti stands at ninth position with a score of 799, only above Honda and Renault.
Hyundai and Tata top the chart of customer aftersales service satisfaction
To optimize after-sales services, many carmakers are offering digital tools for their customers. For example, customers can book services via website and smartphone app. However, the report also reveals that only 1 per cent of the customers actually use these channels. The most popular option is to call directly to the dealerships to make a reservation and the second most chosen solution is to go directly to the service station.
This festive season, to boost sales, car manufacturers are offering a wide range of discounts. It is expected that with all these discounts, the sales can go up after months of sales decline.