J.D. Power Asia Pacific Reports: Customer Satisfaction with Original Equipment Tires Improves Notably from 2010

SINGAPORE: 6 April 2011 — Customer satisfaction with original equipment tires has increased considerably from 2010, with improvement occurring in all aspects of tire performance and features, according to the J.D. Power Asia Pacific 2011 India Original Equipment Tire Customer Satisfaction Index (TCSI) StudySM released today.

The study, now in its eleventh year, measures satisfaction among original equipment tire owners during the first 12 to 24 months of ownership. The study measures overall satisfaction by examining four factors (listed in the order of importance): appearance, durability, traction/handling, and ride.

Overall satisfaction in 2011 averages 822 on a 1,000-point scale, an improvement of 24 points compared with 2010. While satisfaction improved in all four factors from 2010, satisfaction with tire appearance increased more than any other factor in 2011, with a gain of 25 points. In addition, the importance of tire appearance and styling has increased as a consideration factor for why buyers select a particular vehicle model.

“Tire styling is gaining importance among new-vehicle buyers in India as they decide what brand of vehicle to purchase,” said Mohit Arora, executive director at J.D. Power Asia Pacific, Singapore. “In addition, tire safety and convenience are also key considerations. Hence, it has become critical for tire manufacturers to increase customer awareness of the performance aspects of their tires.”

While importance of tire styling and appearance has increased as an influencing factor in vehicle purchase decisions, the importance of the tire brand has declined in 2011, compared with 2010. Overall, the proportion of new-vehicle owners who indicate that tire brand is the most critical factor influencing a vehicle purchase decision has declined by six percentage points to 51 percent in 2011 from 57 percent in 2010. This difference is particularly notable among buyers of MUV/MPV models. In 2010, 58 percent of MUV/MPV owners indicated that tire brand was the most impactful factor in their purchase decision. In 2011, this figure has declined by 13 percentage points, to an average of 45 percent.

For a second consecutive year, MRF ranks highest in customer satisfaction with original equipment tires in India, achieving a score of 833. MRF has improved by 23 points from 2010 and performs particularly well in the appearance factor. Apollo follows MRF in the rankings with a score of 830.

The study finds that satisfaction with original equipment tires has improved from 2010 among owners in nearly all vehicle segments and in each factor. The one exception is the durability factor among owners of MUV/MPV models. Owners of MUV/MPV models report experiencing more problems with their original equipment tires than owners of models in any other vehicle segment. More than one-fourth (26 percent) of MUV/MPV customers report experiencing a problem with their tires, compared with only 11 percent of owners of small cars.

“On average, owners of MUVs and MPVs tend to accumulate more mileage on their vehicles than owners of vehicles in other segments,” said Arora. “Tire manufacturers need to take into consideration the particular durability needs of MUV and MPV owners when designing tires for these models.”

Among owners who report experiencing a problem with their original equipment tires in 2011, 37 percent indicate that they opted not to have the problem serviced. This reflects a six-percentage-point increase from 2010. Overall satisfaction among owners who experience problems with their tires but do not have the problems fixed averages 87 points lower than the industry average.

The study also finds that high levels of customer satisfaction with original equipment tires have a strong positive effect on rates of customer repurchase intent. Customers who are highly satisfied with their original equipment tires (with satisfaction levels averaging above 899) are at least twice as likely to repurchase their current tire brand when buying replacement tires, compared with customers who are less satisfied.

“Tire satisfaction has a profound impact on owner repurchase intent,” said Arora. “Therefore, it is imperative that the manufacturers focus on maintaining or elevating the quality of their brand and ensuring consistent performance of their tires.”

The 2011 India Original Equipment Tire Customer Satisfaction Index Study is based on responses from 3,533 new-vehicle owners surveyed at 12 and 24 months of ownership, from May 2008 and August 2009. The study was fielded between May and August 2010.