Inside Quality Insider

J.D. Power and Associates  |  11/10/2009

J.D. Power and Associates’s picture

Bio

Study: Overall New-Vehicle Initial Quality in China Substantially Improves

Toyota models capture three initial quality awards; Chery models receive two awards

(J.D. Power Asia Pacific: Shanghai) -- Overall new-vehicle initial quality in China has improved by 14 percent in 2009, compared with 2008, as the quality gap between China’s domestic brands and international brands narrows, according to the recently released J.D. Power Asia Pacific 2009 China Initial Quality Study.

Now in its 10th year, the study examines problems experienced by new-vehicle owners within the first two to six months of ownership. Vehicle problems are examined in two distinct categories: the quality of design category and the quality of production (defects and malfunctions) category. Overall performance is determined by problems experienced per 100 vehicles (PP100). A lower rate of problem incidence indicates higher quality.

China overall initial quality averaged 178 problems per 100 vehicles in 2009—a 14-percent improvement from 207 PP100 in 2008.

The gap in initial quality between Chinese domestic and international brands has decreased from 396 PP100 at the inception of the study in 2000 to 116 PP100 in 2009. Initial quality for domestic brands overall has improved from an average of 318 PP100 in 2008 to an average of 258 PP100 in 2009. For international brands overall initial quality has improved from an average of 173 PP100 in 2008 to an average of 142 PP100 in 2009.

2000-2009 China Initial Quality: International Brands vs. Chinese Domestic Brands

 

“Chinese brands have steadily become more competitive in initial quality during the past decade, although there is still ample opportunity for improvement,” says Mei Songlin, Ph.D., general manager of research services at J.D. Power Asia Pacific, Shanghai. “Some domestic brands demonstrate particular strengths in certain vehicle segments in the China market, such as the compact and minivan categories, where they strike a good balance between price and quality.”

Models ranking highest in their respective segments include:

  • Compact: Chery QQ3
  • Premium Compact: Chery QQ6
  • Entry Midsize: Toyota Yaris
  • Midsize: Toyota Corolla EX
  • Lower Premium Midsize: Volkswagen Sagitar
  • Upper Premium Midsize: Toyota Reiz
  • Luxury: Audi A6L
  • SUV: Honda CR-V
  • MPV: Buick GL8
  • Minivan: Hafei Minyi

 

The study finds that problem levels have improved considerably from 2008 in the engine/transmission, driving experience, and vehicle exterior categories. Combined, these three categories comprise 63 percent of reported problems. Excessive fuel consumption is the most frequently reported problem in 2009. Other frequently reported problems include manual transmission issues/difficulty in getting in gear; wind noise; noisy brakes; engine problems; and fan/blower issues.

“Initial quality plays an even more important role as a differentiator in China, compared with mature automotive markets such as Europe and the United States,” says John Humphrey, senior vice president of international operations at J.D. Power and Associates. “Initial quality performance has a significant impact on customer loyalty, advocacy, and satisfaction, which has made quality improvement a particularly high priority for automakers in the China market.”

The 2009 China Initial Quality Study is based on evaluations from 12,038 owners of new vehicles purchased between October 2008 and June 2009. The study includes 127 vehicle models among 48 different makes. The study was fielded from April to August 2009 in 28 major cities across China.

Discuss

About The Author

J.D. Power and Associates’s picture

J.D. Power and Associates

J.D. Power and Associates is a global marketing-information services company operating in key business sectors across a variety of industries. It provides customer satisfaction research, market research, automotive forecasting, social media research, and performance improvement programs. Established in 1968, the company has been listening to consumers and business customers, analyzing their opinions and perceptions, and refining research techniques and study methodologies to offer some of the most advanced product quality, customer satisfaction, and tracking research available. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of the McGraw-Hill Companies.