J.D. Power 2017 India Tractor Product Performance Index (PPI) Study

[Akash1886]

Excessive Tyre Wear Most Bothersome Problem for Tractor Owners in India, and is Notably Aggravated by Tractor Use in Non-Farming Activities, J.D. Power Finds

Eicher, New Holland, Mahindra Rank Highest in Respective Segments​

SINGAPORE: 22 June 2017 — Overall satisfaction among tractor owners in India improves almost 20% from last year, according to the J.D. Power 2017 India Tractor Product Performance Index (PPI) Study,SM released today, echoing upbeat farm sentiment fueled by healthy monsoons.

The study, now in its third year, examines satisfaction with tractor performance among owners of 12- to 24-month-old tractors. Overall product performance satisfaction is measured in two indices: machine performance and quality and reliability. In the machine performance index, the study captures tractor owners’ evaluations in seven categories (in order of importance): hydraulic and couplings; driveability; engine and transmission; overall styling and design; driving comfort; tractor structure; and tyres. The quality and reliability index covers owners’ experiences and ratings of actual and perceived quality issues.

Tractor owners’ overall satisfaction with product performance improves to 823 (on a 1,000-point scale), a 52-point increase from 2016. The surge in satisfaction is evident in both the machine performance and quality and reliability indices.

The study measures the number of problems owners experience with their tractor across 88 problem areas. Problems are summarised as number of problems experienced per 100 tractors (PP100), with a lower score reflecting higher quality. The number of reported problems has declined, as the average PP100 at the industry level is 150 PP100 in 2017, down from 245 PP100 last year.

Excessive or uneven tyre wear continues to be the most frequently reported problem for a third consecutive year. It is also noted as the most bothersome problem by tractor owners, with overall satisfaction declining by 99 points when owners report problems related to their tractor tyres vis-à-vis when such problems are not reported. The increasing use of tractors for non-farming operations aggravates the issue further, as problem counts on excessive tyre wear increase by 6.5 PP100 when the tractor is also used for non-agricultural applications vs. when its use is solely reserved for farm applications. The study also notes that a higher proportion of owners who use their tractor for non-agricultural purposes have replaced and re-treaded their original tyres, in comparison to those who have used their tractor only for farming activities.

“Tyre wear can result in higher fuel consumption as well as an uncomfortable and unstable ride,” said Yukti Arora, manager at J.D. Power. “Customers who report excessive or uneven tyre wear provide much lower ratings on fuel efficiency, traction and ride smoothness of their tractor. When tractors are used for non-farming activities, improper tyre pressure, changing ground-surface conditions from fields to paved roads, and uneven load distribution during haulage operations can cause tyres to wear faster. In order to improve satisfaction with the original tyres, manufacturers and dealers should educate tractor owners on proper tyre maintenance for enhanced performance and extended tyre life.”

While the incidence of problems reported by tractor owners in 2017 has decreased to 49% from 56% last year, the resulting strain on customer satisfaction is much higher this year. “With increased penetration of superior quality products and luxury items, improved information accessibility and enhanced exposure to urban influences, customers in rural India are now more demanding than before and expect higher quality standards from their tractor,” said Arora.

The overall product performance index score drops significantly by 90 points when customers report problems with their tractor versus when no problems are recalled. “While tractor OEMs continue to compete aggressively on improving their product’s quality to match mounting aspirations and evolving perspectives of customers in rural India, sophisticated product offerings with minimal defects that give customers a ‘bang for their buck’ have become an indispensable requirement for gaining acceptance in the rural market,” said Arora. “Indeed, OEMS that can deliver superior product quality will be best positioned in this developing market.”

Study Rankings

The India Tractor Product Performance Index Study ranks tractors in the following segments: below 31 horsepower; 31-40 horsepower; 41-50 horsepower; and above 50 horsepower.

Eicher ranks highest in the below 31 HP segment with a score of 856 and performs particularly well across three of seven machine performance categories.

New Holland ranks highest in the 31-40 and 41-50 HP segments, scoring 862 and 866, respectively. New Holland leads in all seven machine performance categories in both of these HP segments.

Mahindra ranks highest in the above 50 HP segment with a score of 889, and achieves the highest score across five machine performance categories.

The 2017 India Tractor Product Performance Index Study is based on evaluations from 3,440 tractor owners across 14 states. The study was fielded from December 2016 to April 2017 and includes owners who purchased a new tractor between December 2014 and March 2016 from an authorized dealership.

Regards

Akash

 

[Akash1886]

Tractor Service Satisfaction Improves in India, While Customer Acceptance of Substandard Work Declines, J.D. Power Finds

New Holland Ranks Highest in Tractor Service Satisfaction​

SINGAPORE: 27 June 2017 — Customer satisfaction with tractor after-sales service in India has improved year over year, while tolerance toward substandard service experience has notably declined, according to the J.D. Power 2017 India Tractor Customer Service Index (CSI) StudySM released today.

The study, now in its third year, examines satisfaction among tractor owners who visited an authorised service centre for maintenance or repair work in the last 12 months. Overall customer satisfaction is based on a combined score of the service satisfaction and parts operation indices. The service satisfaction index measures overall satisfaction across four factors (listed in order of importance): service quality; service engineer; service initiation; and service handover. The parts operation index captures satisfaction across five attributes. Overall customer satisfaction is measured on a 1,000-point scale, with a higher score indicating higher satisfaction.

Tractor owner satisfaction with after-sales service climbs to 784 in 2017 from 751 in 2016. The improvement is attributed to gains in all four service satisfaction index factors as well as a 60-point increase in the overall parts operation index score.

The study finds that a higher proportion of customers who are “disappointed” with the service experience (scores of 701 and below) are inclined to get their tractor serviced at a non-authorised service facility, compared to customers who are “delighted” (scores of 901 and above) who say the same. Of those owners whose overall service experience was worse than expected, 58% had their tractor serviced by a local mechanic in the past 12 months vs. 41% of those whose service experience exceeded expectations. Moreover, the loss of after-sales business to non-authorised service facilities due to dissatisfied customers is much higher this year compared with 2016, when 36% of tractor owners whose service experience was worse than expected visited an unauthorized dealer for service or repair.

“Unauthorised servicing alternatives are increasingly preferred by tractor owners who are disappointed with the authorised service channels—even within the warranty period—which emphasizes their growing disapproval of lagging service standards of the authorized network,” said Yukti Arora, manager at J.D. Power. “In a market flooded with local and cheaper service options, greater attention to customer expectations is imperative to gain confidence in the OEM dealer network. By improving long-term retention rates, dealers will prevent the loss of significant service revenue.”

The study shows that the service engineer’s knowledge of a tractor’s service history, as well as attention to customer requirements and diligence in providing detailed explanations of the work performed greatly enhances customer satisfaction with the quality of work done, and helps build appreciation of the time taken and charges paid for service. One-fourth (25%) of tractor owners who did not receive an explanation of service work done and 15% of owners who received an explanation either before or after the work was completed indicate disappointment with the fairness of the charges. This is in stark contrast to only 4% of those who received explanations both before starting and after completing the work. Of those owners who say their service was completed on their first visit. However, just 85% of owners that say the engineer did not know their tractor’s service history and 77% of those who observed that the service engineer was not fully focused on their needs indicate the same.

“Dealers should forgo complacency and instead proactively engage with customers to win their loyalty. Additionally, OEMs should ensure that their dealer staff has the necessary proficiency and the right attitude toward servicing customers,” Arora said. “This will not only keep existing relationships buoyant, but also promote word-of-mouth referrals.”

Following are additional findings of the 2017 study:

Lack of parts availability for urgent repair work prolongs machine downtime, thereby resulting in loss of crucial time for tractor owners, especially during peak seasons. Satisfaction with parts availability at the dealer is significantly lower when the tractor is taken for repair work or at the time of breakdown, compared with satisfaction with parts availability when regular servicing work is done. Nearly one-third (30%) of owners who took their tractor for repair are disappointed with the parts availability at their dealer, compared with only 8% of those who went to the dealer for routine service work.

Satisfaction drops below average when less than 90% of needed tractor parts are available at the dealer when ordered. Parts availability continues to be worst in the East region (Bihar, Odisha and West Bengal), where only 16% of tractor owners say that 90% or more of tractor parts were available at the dealer when ordered. On the other hand, 33% of tractor owners in the West region (Gujarat and Maharashtra) indicate more than 90% parts availability at their authorized dealership, the highest proportion across regions and consistent with the trend in 2016.

Study Rankings

New Holland ranks highest in satisfaction with the after-sales service experience with a score of 842, a 74-point improvement from 2016. John Deere (803) ranks second and Mahindra (801) ranks third among the eight brands included in the study.

The 2017 India Tractor Customer Service Index Study is based on evaluations from 3,440 tractor owners across 14 states. The study was fielded from December 2016 to April 2017 and includes owners who purchased a new tractor between December 2014 and March 2016 from an authorised dealership.

Regards

Akash