J.D. Power: Quality of national brands improving, closing gap with non-national brands

By CARSIFU | 10 November 2016


The study has singled out the Perodua Myvi as a local car with top-notch quality.


KUALA LUMPUR: National makes are catching up in quality with non-national brands, with the gap the smallest it has ever been, according to the J.D. Power 2016 Malaysia Initial Quality StudySM (IQS), released today.

New-vehicle quality in Malaysia improved by 18% from 2015, the largest improvement in the 14-year history of the study.

Overall initial quality improved to 69 PP100 (problems experienced per 100 vehicles) in 2016 from 259 PP100 in 2003. While the initial quality score for non-national brands is still better at 54 PP100, national brands, with a score of 83 PP100, are closing the gap.

The year-over-year rate at which national makes are improving outpaces that of non-national makes, at 18% vs. 16%, respectively. National makes performed particularly well in the compact car segment, in which the top three compact car models are all locally made.

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Initial quality improved across all eight problem categories measured in the study, with engine/ transmission registering the greatest reduction in problems. Vehicle exterior continued to be the category with the most reported problems, a trend that has persisted from the start of the study in 2003.

“In a span of 14 years, the gap between national and non-national makes has shrunk to just 29 PP100 from 146 PP100, signifying local manufacturers’ commitment to producing high-quality products,” said Mohit Arora, regional vice president at J.D. Power. “To sustain this momentum, auto manufacturers should continually focus on the most frequently reported problems and identify groups of customers that are particularly sensitive to problems in their cars.”

The study found that there are particular groups of car owners that experience a higher incidence of problems with their vehicles. For example, men reported more problems than women (79 PP100 vs. 56 PP100, respectively). Additionally, owners who usually have four passengers in their vehicle reported an average of 73 PP100, compared with 54 PP100 for those who drive their car alone. Owners with more than 10 years of driving experience are also more prone to report problems, compared to those with no more than 10 years of driving experience (85 PP 100 vs. 55 PP100, respectively).

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“Clearly, usage patterns and driving savviness influence car owners’ perceived quality of their vehicles,” said Rajaswaran Tharmalingam, country head of Malaysia at J.D. Power. “Auto manufacturers that are able to identify these groups of customers, and communicate to them in advance what to expect from their cars, may help mitigate any dissatisfaction that can arise from unexpected problems.”

Among the 39 models examined in the study, two Toyota models, one Mazda and one Perodua model rank highest in their respective segments.

The Toyota Vios ranks highest in the entry midsize segment (48 PP100), and Toyota Avanza ranks highest in the MPV/ Van segment (52 PP100) for the eighth consecutive year. The Perodua Myvi ranks highest in the compact segment (73 PP100), and the Mazda CX-5 ranks highest in the SUV segment (41 PP100).

The Mazda CX-5.


Other findings of the 2016 study include:

> Top three most frequently cited problems: Consistent with the 2015 study, excessive wind noise remains the most frequently reported problem (4.6 PP100), followed by air conditioning not cold enough and fast enough (2.7 PP100) and noisy brakes (2.5 PP100).

> MPV/ Vans have the most problems: MPV/ Van owners reported the most problems, at 79 PP100, although quality in this segment has improved from 90 PP100 in 2015.

> High Quality = High Loyalty: High initial quality is an important driver of brand loyalty, which can influence consideration and shopping for a brand. Among owners who do not experience any problems with their vehicle, 25% said they “definitely would” repurchase the make. The repurchase rate dropped to 13% among owners who experienced one or more problems.

The 2016 Malaysia Initial Quality Study (IQS) was based on responses from 2,436 new-vehicle owners who bought their vehicle between August 2015 and June 2016. The study included 39 passenger car, pickup and utility vehicle models of 12 brands. The study was fielded between February and August 2016.

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