Thursday, September 27, 2012
By Manoj Kumawat
Maruti Suzuki continues to be the most considered nameplate in India
According to J.D Power Study, Maruti Suzuki continues to be the most considered nameplate among vehicle buyers, despite a decline in consideration rate year over year. Conversely, the consideration rates of such makes as Toyota and Mahindra sharply increase from 2011. The J.D. Power Asia Pacific 2012 India Escaped Shopper StudySM (ESS) released today is based on responses of 7,382 buyers and 2,721 rejecters of new cars and new utility vehicles who purchased their vehicle between September 2011 and April 2012. The study was fielded from March to July 2012.
The study, which examines the reasons why new-vehicle shoppers consider but ultimately reject certain models in favor of another, finds that 28 percent of new-vehicle buyers considered one or more vehicles before selecting the vehicle they ultimately purchased, up from 23 percent in 2011. The increase in cross-shopping rates is primarily driven by repeat new-vehicle buyers—shoppers who are either purchasing an additional vehicle or replacing their household vehicle—as more than one-third of repeat buyers considered one or more models during their shopping activity, an increase of nearly 9 percent from 2011. The cross-shopping rate among first-time vehicle buyers remains largely unchanged from 2011 at 20 percent.
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“Repeat buyers tend to shop more than first-time buyers, but this has further increased in 2012 with the launch of several new models in the country,” said Mohit Arora, executive director at J.D. Power Asia Pacific, Singapore. “Repeat buyers typically have a greater willingness to experiment with new models that are launched in the market. With the significant increase in new-model launches in 2012, this set of shoppers clearly has a wider range of choices.”
Arora also noted that repeat vehicle buyers show greater involvement in the shopping process and are more likely to visit dealerships and test drive new models before making their final purchase decision.
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One-third of customers rejected the vehicle they initially considered purchasing because they wanted a vehicle with better fuel economy. Price continues to be among the major reasons for rejecting a vehicle. However, shoppers cite price less often in 2012 compared with 2011 as buyers increasingly prefer vehicles that provide a cost-of-operation advantage.
“The increases in fuel prices during the past year appear to have a significant impact on vehicle shopping preferences and vehicle-buying decisions,” said Arora. “Vehicle operating costs are therefore superseding initial acquisition costs in the buying decision process, as shoppers increasingly choose between similar priced vehicles.”