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Last Updated : Sep 24, 2020 12:49 PM IST | Source: Moneycontrol.com

Kia Motors tops dealer satisfaction, Tata & Honda lag behind during lockdown: Study

The study focussed on the support system for dealers during the lockdown period which significantly impacted operations and even resulted in zero sales for over 40 days.

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Dealers of Kia Motors reported the strongest level of satisfaction in areas of communication and manpower related matters during COVID-19 and lockdown days compared to its peers, a study sponsored by the apex dealer association has found.

Kia Motors clocked 736 points (on a maximum of 1000 points) in the study while Tata Motors and Honda Cars found themselves at the bottom two positions at 449 points and 404 points way below the average of 600 points as per the study done by PremonAsia, a consumer-insight based consulting firm.

The study focussed on the support system for dealers during the lockdown period which significantly impacted operations and even resulted in zero sales for over 40 days.


Eight passenger vehicle brands, including Maruti Suzuki, Mahindra & Mahindra, Hyundai, Ford and Toyota were part of the study. Renault, Nissan, Volkswagen and Skoda did not feature in the ranking. Maruti Suzuki stood at the third spot with 574 points.

“Kia dealers report stronger level of satisfaction on areas of communication and dealer manpower related matter – aspects like the senior/ top management of Kia maintaining regular and close communication with dealer owners; their team offering adequate information on communication with customers waiting for their vehicles; their team offering online engagement to motivate & enhance knowledge of sales & service dealership staff”, stated the report.

Kia is one of the latest automotive brands to have entered India (2019). The company, with a three model line – Seltos, Sonet, Carnival – has grabbed a market share of 5 percent of the domestic market. Toyota was ranked second in the study with an above average 641 points.

Toyota dealers reported stronger level of satisfaction on areas of financial support – aspects like expediting settlement of all claims (warranty/ marketing/ sales incentive payment etc.), the study added.

In the two-wheeler space Hero MotoCorp, India’s largest two-wheeler manufacturer, topped the charts with a score of 623 points followed closely by Honda Motorcycle and Scooter India (HMSI) at 567 points. The study featured seven two-wheeler brands in total.

Vinkesh Gulati, president, Federation of Automobile Dealers Association said, “Auto dealers, who were already facing financial stress due to transition from BS-4 to BS-6 coupled with high inventory were the worst hit. COVID-19 almost broke the backbone as dealerships were reeling under high stress with no sales and fixed operational costs in terms of salaries, rent and interest on inventory funding.”

In the medium and heavy commercial vehicle segment all manufacturers recorded below average points. Eicher Motors-promoted VE Commercial Vehicles finished in the lead with 449 points followed by Tata Motors at 448 points. In the small commercial vehicle space Mahindra & Mahindra recorded 607 points.

In April 2020, retail sales fell to zero for the first time after the country-wide lockdown due to COVID-19. FY20 turned out to be one of the worst years, with auto volumes declining 18 percent to 21.54 million units, compared to FY19. FY20 also saw more than 300 dealerships down shutters permanently.

Direct financial aid like loans, longer credit period, higher margins, interest subsidy and help in securing inventory loans from banks and financial institutions were some of the measures taken by automotive companies during the past few months. Maruti Suzuki, Tata Motors, HMSI were among the companies who lent support.
First Published on Sep 24, 2020 12:49 pm