Dealer Satisfaction Study Shows Improvements While Concerns Remain

Mobility Outlook Bureau
09 Sep 2022
06:14 PM
2 Min Read

The average dealer satisfaction score was 719 and all segments have shown an improvement over last year with the four-wheeler luxury space up by 147 points followed by the CV segment (112 points).


FADA Dealer Satisfaction Study 2022

The Dealer Satisfaction Study 2022 released on Friday shows an improvement of 62 points from last year. It was carried out by the Federation of Automobile Dealers Associations (FADA) along with PremonAsia, a consulting firm based in Singapore.According to a press release issued by FADA, the average dealer satisfaction score was 719, and all segments have shown an improvement over the last year, with the four-wheeler luxury space up by 147 points, followed by the CV segment (112 points).In the four-wheeler mass market segment, the study shows that sharing of training costs with OEMs is an area of concern, along with the involvement of dealers in policymaking. However, they are happy with product reliability and the range of offers to customers.In the four-wheeler luxury space, dealers are concerned about parts delivery and turnaround time, as well as OEMs’ ability to meet vehicle orders as per specifications and requirements. The study has shown that dealers are satisfied with the existing sales process, product range offered to customers and OEMs’ extended warranty process.As for two-wheelers, OEMs' buyback/deadstock policy and margins on sales are areas of concern and need to be attended to as they impact retail viability. Dealers are satisfied with the product reliability and range and the effectiveness of the training provided to customer-facing teams.In CVs, dealers are concerned about ensuring viability and dealing with deadstock and inventory buyback by the OEM. Product dependability, reliability and range are areas of strength according to dealers. This is particularly important considering the shift to BS-6 vehicles, FADA noted. Three winners from last year have maintained their leadership positions in their respective segments. Hyundai Motor India improved its performance by 119 points to end at number two in the four-wheeler passenger mass segment.Royal Enfield jumped several notches to bag the third spot in the two-wheeler mass market segment, improving by 151 points over last year. VECV has maintained its top slot in the CV segment and improved by 163 points over last year.At the overall industry level, the product is the highest scoring factor across all categories except for the four-wheeler luxury segment, where it comes a close second. This shows that the industry is expected to bring in world-class products keeping in line with customer demand.The DSS’22 study was conducted using a self-administered web-based questionnaire wherein the link for the survey was sent to all dealers. They were then invited to access the survey and fill in their responses. The study link was open between July and August, and more than 2,000 dealers responded to the survey. The data was cleaned and 1,905 valid responses were analysed.

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