Moneycontrol PRO

Kia dealers happiest, Honda most dissatisfied: Dealer survey

Kia India topped the four-wheeler mass market segment ranking with a score of 879 while Honda Cars trailed at the tenth spot with a score of 562.

July 29, 2021 / 02:28 PM IST
Both Kia and MG have a limited product portfolio comprising three models each.

Both Kia and MG have a limited product portfolio comprising three models each.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Dealers of Korean car brand Kia appeared to be most satisfied in the survey initiated by Federation of Automobile Dealers Association (FADA) while dealers of Honda Cars were the most dissatisfied.

Kia India topped the four-wheeler mass market segment ranking with a score of 879 while Honda Cars trailed at the tenth spot with a score of 562. Industry average score stood at 720.

Car market leader Maruti Suzuki stood seventh preceded by Hyundai in the sixth spot and Tata Motors in the fifth spot. SUV-specialist Mahindra & Mahindra (M&M) stood eighth, only marginally ahead of Ford in the ninth spot.

MG Motor, which entered India in the same year as Kia, stood second in the satisfaction survey followed by Toyota in the third spot. The survey was conducted by PremonAsia, a consumer-insight based consulting firm

Rajeev Lochan, Founder and CEO, PremonAsia said, “OEMs have a significant headroom to improve in meeting the needs of their channel partners. Kia Motors’ performance is commendable with segment and industry leading ratings across all the factors. Not only are Kia’s dealers satisfied with most of the hygiene needs, but they are also truly delighted with the product and their business viability.”

Close

Both Kia and MG have a limited product portfolio comprising three models each. They also have a limited number of dealerships compared to the vast spread of market leaders like Maruti Suzuki and Hyundai.

Dealer satisfaction is directly correlated to the natural retail pull for products, entailing limited marketing and sales efforts by the dealers. Kia has stood out with fast moving products like the Seltos and Sonet helping the company to climb to the third spot in just a year after its India debut before being pushed to the fourth spot by Tata Motors.

The study saw more than 2000 responses from dealer principals and CEOs of dealerships.

“Product demand, how OEMs were providing training, warranty claims settlement speed, faster delivery of orders were some of key factors that determined the rankings. Slow moving products and parts and slower funding were also the other factors and determined satisfaction levels of the dealer,” Lochan added.

In the two-wheeler category Honda Motorcycle and Scooter India topped the ranking followed by Hero MotoCorp, TVS Motor Company and Bajaj Auto. Royal Enfield stood last.

In the two-wheeler segment the biggest concern which the study highlighted was OEMs not being 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.
Moneycontrol News
first published: Jul 29, 2021 02:28 pm
Sections
ISO 27001 - BSI Assurance Mark