The Federation of Automobile Dealers Associations (FADA)—the apex national body of auto retailers in India, has teamed up with consulting firm PremonAsia, to conduct a Dealer Satisfaction Study which apparently tells us which OEM dealers are the most satisfied in the country. FADA President Vinkesh Gulati had the following to say —
FADA’s Dealer Satisfaction Study 2021 was initiated to examine the health of the relationship between auto dealers and their OEMs. The survey was undertaken to reflect the prevailing issues faced by the auto retail sector at large, thus making it the true voice of the dealers. OEMs need to be cognizant of the evolving dealer expectations. While issues of concern such as dealership viability, support on sales and after-sales, openness to dealer inputs in decision making and designing long-term policies are fundamental needs, there are clear signs that dealers expect their respective OEMs to go beyond. For example, there is a need to have technology solutions and analytics to intelligently mine transaction data for business gains. Also, creating a digital platform to measure the effectiveness of marketing expenditure is reflective of a changing mindset.
According to FADA Secretary & Chairman C S Vigneshwar, FADA took more than 2,000 samples, the highest ever number which has been used for such a study in India. “The survey being filled entirely by the Dealer Principals or their CEOs is a testimony of its accuracy and coverage of all aspects of dealerships in detail. DSS 2021 also has an equal distribution of samples from all 4 zones coupled with the right urban and rural mix. I am thankful to the entire dealership fraternity for devoting a sizable time. I am also grateful to all OEMs who persuaded their dealers to do the needful,” added Vigneshwar.
4-wheeler mass market segment
While dealers raised their concerns about OEMs not being receptive to their inputs for keeping a viable and long-term policy in mind, they also said that OEMs provide adequate training for frontline sales & service staff thus keeping the end customer satisfied.
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. — Rajeev Lochan, CEO, PremonAsia
4-wheeler luxury segment
The study found that training cost sharing arrangement by the OEMs was unsatisfactory and OEMs ability to fulfill vehicle orders in correct specifications and quantity, coupled with non-flexibility to choose workshop equipment were the cause of major concerns. The study also found that extended warranty policy and customer handling process were at satisfactory levels.
2-wheeler segment
The biggest concern which the study highlighted was OEMs were not open to dealer inputs in terms of improving dealership cost structure from a viability and policy point of view. Similarly, there was no support from OEMs on buyback of dead stocks of parts. On the positive side, the study found that OEMs were fair in acceptance and rejection of warranty claims.
Finally, in the 3-wheeler segment, both Bajaj and Piaggio dealers are pretty close when it comes to the satisfaction score, and in the CV segment, Eicher Motors tops the list.
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