After-sales service of gasoline cars better, says report

Gasoline vehicle manufacturers are improving their after-sales service to retain customers amid fierce competition in the Chinese vehicle market, according to a J.D. Power study.

The J.D. Power 2024 China Customer Service Index Study, released on Thursday, showed that customer service satisfaction in China hit 773 on a 1,000-point scale in 2024, a 14-point increase from 2023.

Specifically, satisfaction among owners of premium brands increased 11 points to 796. Land Rover ranked first with a score of 805, followed by Mercedes-Benz with a score of 802 and Cadillac at 801.

Scores for mass-market brands and Chinese carmakers stood at 767 and 765 respectively, each seeing an increase of 14 points from 2023.

Of mass-market brands, GAC Honda ranked highest on the list with a score of 792. Geely was highest among Chinese domestic brands with a score of 786. Chery and GAC Trumpchi ranked second in a tie among Chinese domestic brands, each with a score of 780.

The study, now in its 24th year, measures satisfaction with after-sales service at authorized dealers in the past 12 months among owners of 1 to 4-year-old vehicles.

The 2024 study is based on responses from 33,298 vehicle owners of 43 automotive brands in 81 major cities who purchased their new internal combustion engine vehicle between January 2020 and June 2023. The study was run from February to July 2024.

J.D. Power said the improvements in scores in 2024 indicate that automakers are placing more emphasis on after-sales service.

Of the six factors measured in the study, service quality has seen the highest increase, improving 16 points from 2023.

Ann Xie, general manager of the digital retail consulting practice at J.D. Power China, said as NEV makers' direct sales models and digital communication channels are becoming trendy, those who purchase internal combustion engine vehicles are now expecting that same service efficiency.

"Automakers need to actively adapt to market changes by building efficient digital service systems that reduce costs while also enhancing the customer experience. Striking the right balance between cost control and customer satisfaction will be crucial," she said.

The 2024 study showed that carmakers are seeing their efforts work best for new car owners.

Of the respondents, the satisfaction of those who have owned their vehicle for one to two years improved 25 points compared with the previous study. Meanwhile, satisfaction among those who have owned their new vehicle for three to four years fell 16 points.

Another finding is that service transparency has a great effect on satisfaction.

The study showed that customers' satisfaction is 77 points higher when they are shown live footage or video of their vehicles being serviced than those who are not. That gap was only 30 points in 2023. Car owners' satisfaction is 91 points higher when all service charges are communicated in advance, the study said.

Satisfaction and loyalty are higher among customers who have installed the app from their vehicle maker.

They are found to be more likely to go to the authorized dealerships instead of roadside mechanics for repair and maintenance, which is 8 percentage points higher than non-app users.

Such customers tend to spend more on after-sales services, with an average expenditure of 2,331 yuan ($330), 718 yuan higher than those of non-app users.

The study also found that customers who are offered free benefits by the automakers are more likely to purchase other benefits.