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Customers’ Voice Critical in Addressing Automaker Concerns

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Fernando Mares By Fernando Mares | Journalist & Industry Analyst - Mon, 04/24/2023 - 15:40

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Q: How does J.D. Power help automakers to address customers’ concerns?
A: The company's main objective is to listen to the automotive industry and communicate its concerns. This helps our clients ensure customer satisfaction, retention and loyalty, leading to business growth. J.D. Power adds value to the information generated from surveys thanks to its over 50 years of experience in customer satisfaction, which allows us to understand the insights that are useful for the industry. 

J.D. Power adds further value by providing benchmark data that allows automotive companies to compare their performance with their competitors. This allows them to identify areas for improvement or development to increase their market share. 

Q: How far along is Mexico’s automotive industry in its electromobility transition?
A: J.D. Power is conducting research globally on customers’ perception of fully electric vehicles (EVs) and hybrid vehicles. Those technologies are attractive to consumers but only half of them are willing to switch to an alternative mobility solution. We observed that about 55% of customers are willing to shift to hybrid cars and only 43% are willing to switch to EVs. 

This trend will continue to increase by 2030, as about 60% of vehicles are expected to include some type of electric-powered engine and 48% of those will be EVs. In Mexico, however, only 16% of customers are expected to switch to those vehicles, which can mainly be attributed to three factors: lack of infrastructure, lack of incentives and higher initial costs. These reasons make traditional internal combustion engine (ICE) vehicles a more suitable option for the Mexican market. 

Q: How is J.D. Power using technology to improve its consulting services?
A: Over the past 20-30 years, technology has played a significant role in driving innovation across industries, including automotive and research. J.D. Power has been adapting to these changes by integrating new technologies into our consulting services to make it easier for customers to access our insights. For example, instead of using paper-based surveys, we are shifting to a data-driven, analytics-focused approach to provide big data analysis that can be easily accessed and extracted in a digital environment. 

Although our operations are not entirely digitized, we have acquired new brands to improve our technological capabilities. IoT has allowed us to create cross-analysis tab tools to offer easy access to basically any of our customers' platforms. Our unique point of view, based on our vast experience, adds additional value to this analysis by making it richer and more relevant for our automotive clients.

Q: What are theTop 3 benefits that automotive businesses gain from implementing J.D. Power's predictive analytics and VIN database solutions?
A: The first advantage automotive companies gain is access to the most important information from a fresh perspective, which gives our customers a clear advantage in their portfolio analysis. By incorporating extensive quality controls behind the data, businesses can gain better information. 

Second, our clients can become more data and analytics-driven. Our approach allows businesses to add different information and combine various points from different databases to understand data from a different perspective. For example, businesses can cross-reference the volume of sales this year with how much gross income has grown to add perspective. This helps companies gain a more comprehensive understanding of their data, which can lead to better decision-making.

Finally, we provide training to automotive businesses, ensuring that their business operations are up-to-date with the market. This training also allows them to learn from past experiences to better forecast future performance. By maintaining a fresh and unique point of view, businesses can stay ahead of their competitors and make better decisions.

Q: As raw material shortages and supply chain disruptions persist, what can the industry anticipate next?
A: During the past two years, the global industry’s failure to cover demand caused it to produce 15 million fewer units than expected. This scenario leaves consumers with limited options, with wait periods ranging from one to over six months at dealerships. The industry is struggling to catch up and there are no solutions in sight, as demand for microprocessors from other sectors will continue to increase. We forecast that these problems will reduce production by between 5 million and 6 million units this year.

In Mexico, production capability stands at about 60-70%, with the remaining 30% affected by the lack of materials. As a result, OEMs are strategically placing their vehicles where they can make the most profit, which also inevitably extends the time it takes for customers to receive their vehicles.

Photo by:   Mexico Business Publishing

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