SINGAPORE: 28 May 2015 — Optimism among car dealers in India is growing as a majority expect their financial performance to improve this year, according to the J.D. Power Asia Pacific 2015 India Dealer Satisfaction with Automotive Manufacturers Index (DSWAMI) StudySM released today.
The study finds that 56 percent of dealers in India estimate that their financial performance in fiscal year 2015 will improve, compared with fiscal year 2014. In the 2014 study, only 46 percent of dealers indicated that their financial performance will be better than last year.
“The last two or three years have been challenging for the passenger-car industry and subsequently for dealers across India as they grappled with low demand,” said Mohit Arora, executive director of J.D. Power Asia Pacific. “However, an uptick in sales for the first time in two years in fiscal year 2015 seems to have provided a much-needed respite for dealers who appear to perceive that the worst could be over.”
Now in its fifth year, the study measures dealer satisfaction with vehicle manufacturers or importers in India and identifies dealer attitudes regarding the automotive retail business. Overall dealer satisfaction is determined by examining nine factors: marketing and sales activities; product; vehicle ordering and delivery; sales team; parts; warranty claims; after-sales team; training; and support from the manufacturer.
Sales team (16%) is the highest-weighted factor in the 2015 study, increasing in importance by 6 percentage points year over year and contributing most to overall dealer satisfaction. Similarly, the marketing and sales activities factor has increased in importance year over year (15% vs. 9%, respectively).
“Prevailing market conditions have necessitated a closer working relationship between the dealers and manufacturers as they strive to achieve target sales volumes,” said Arora. “Support from manufacturers with marketing and sales activities, and cohesive working relationships between manufacturers’ sales teams and dealerships have helped drive dealer satisfaction.”