'Luxury vehicle sales growth creating challenges for dealers'

With the growth in sales of luxury vehicles in the country, dealers are finding it difficult to align their service levels with customer expectations, says a recent survey.
According to the J D Power 2014 India Customer Service Index (CSI) survey, luxury new-vehicle sales in India have increased 112 per cent to 35,541 units in 2014 from 16,804 units in 2013.
As a result of the surge in new vehicle sales, luxury vehicle manufacturers' workshops are finding it difficult to align their service levels with customer expectations, it said.
"With the increase in the volume of luxury segment cars in India, there is inherent pressure being exerted on the workshops' infrastructure and processes," J D Power Asia Pacific, Singapore Executive Director Mohit Arora said.

Overall, luxury customer satisfaction with their dealership service experience averaged 843 in 2014, a significant 33 point decline from 2013.
Satisfaction dropped in all factors in 2014 with the largest decrease of 36 points each in service initiation and service facility.

Satisfaction among the 22 per cent of luxury owners who indicate all 22 service standards were met, averaged 890. When 21 or fewer service standards were implemented, satisfaction fell to 849.
The study, now in its 2nd year, measures satisfaction among luxury vehicle owners who visit an authorised dealership service center for maintenance or repair work between the first 12 to 24 months of vehicle ownership.

The study measures overall satisfaction in five factors -- service quality, vehicle pick-up, service advisor, service facility and service initiation.
Overall customer satisfaction is measured on a 1,000-point scale, with a higher score indicating higher satisfaction.