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New vehicle buyers in India are now more keen on a quality ride and are consequently opting for premium brands to ensure above-industry-average quality in their cars. In fact, according to the 2013 India Initial Quality Study by a Singapore-based research firm JD Power, because of fewer problems associated with their brands, Toyota and Honda are top picks with both having 3 models that rank highest in their respective segments.
In case of Honda, Brio ranks the highest in the upper compact segment; Amaze in the entry midsize; and Honda City in the midsize segment.
In case of Toyota, Innova ranked the highest in the multipurpose vehicle segment, Corolla Altis in the premium midsize segment and Fortuner in the SUV segment.
In the smaller car segments, Maruti Suzuki Alto 800 ranks the highest in entry compact car segment and Maruti Swift in the premium compact segment, while Hyundai Santro ranks the highest in the compact car segment.
This perception of quality has a strong bearing on model advocacy, and in turn on sales, as 85 percent of Indian customers rely on recommendations of family and friends before buying a car.
In fact, since 2011, the sales volumes of automakers that have above-average initial quality increased 6 percent and the sales volumes of automakers whose customers reported more quality problems than average fell 8 percent.
Mohit Arora, Executive Director, JD Power: Manufacturers need to be more careful to ensure there are no problems in terms of vehicle interiors or driving dynamics because when you are looking at these problems occurring, there is a higher impact on satisfaction and that directly correlates to advocacy and loyalty of that customer towards the brand and model.
Experts say, in a market where carmakers are struggling to push sales, delivering to new customers' expectations on quality could be a big sales driver.
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