The average satisfaction score across all segments were well below 600 points on a 1,000 point scale
Federation of Automobile Dealers Association (FADA) has recently conducted Covid-19 Dealer Support Satisfaction Study. The report which was created in association with Singapore-based PremonAsia observes varying levels of support form OEMs to their respective dealer partners.
FADA’s dealer support satisfaction study during COVID-19 lockdown focused on 6 parameters to rate the OEMs – support on financial matters, communication, dealer manpower, lockdown related affairs, restart of business and future business evolution.
Passenger vehicle segment
The ranking list which is based on a 1,000-point scale witnessed only two passenger vehicle brands surpassing 600 points. Kia with a score of 736 points emerged as a clear leader in the dealer satisfaction study while Toyota Kirloskar Motor finished second with a tally of 641. Tata and Honda found themselves trailing their competitors in the mass market segment. As far as luxury segment is concerned, Audi just managed to breech the 600-point mark to lead its compatriots BMW and Mercedes who scored 531 and 500 points respectively.
Kia’s top score is a reflection of its dealers’ satisfaction regarding communication and dealer manpower related affairs. Toyota’s dealers were happy about the automaker’s financial support such as expediting settlements and offering financial assistance on inventory.
Two wheeler segment
Country’s market leader Hero MotoCorp topped FADA’s COVID-19 dealer support satisfaction study with 623 points. Honda and Royal Enfield managed to breech 500-point mark but the satisfaction levels are low in general. India Yamaha scored a paltry 398.
Satisfaction levels in three-wheeler segment was below 600 points with Bajaj coming closest to that limit at 559 points. Things were even worse in medium and heavy commercial vehicle segments where the top scorer, Volvo Eicher Commercial Vehicles (VECV), had a tally of 449 points. In the small and light CV segment, Mahindra scored 607 points while Tata Motors only managed to score 383 points. Force and Askok Leyland finished between the two.
Even before the COVID-19 crisis, automobile dealers in India have been struggling due to a prolonged slowdown in the market. The pandemic couldn’t have come at a worst time. At times like these, support from the manufacturers become absolutely crucial for the dealer partners to ensure sustainability. With sales coming to a ground halt during lockdown period, several dealerships across the country were forced to shut down permanently while most others had to cut down on jobs.
Moving forward, there is a general consensus among FADA members that there should be greater dealer empowerment in the future in addition to increased involvement in data analytics, digital marketing and technology.