Vehicle Quality in Indonesia Improves Again from Five Years Ago, J.D. Power Finds

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Honda Receives Two Model-Level Awards for Initial Quality; Toyota and Suzuki Each Receive One

SINGAPORE: 21 Dec. 2016 — New-vehicle quality in Indonesia continues to improve from five years ago, specifically in areas pertaining to noise and function-related problems, according to the J.D. Power 2016 Indonesia Initial Quality StudySM (IQS), released today.

The study measures problems experienced by new-vehicle owners during the first two to six months of ownership and examines more than 200 problems in eight vehicle categories (listed in order of frequency of reported problems): engine and transmission; driving experience; vehicle interior; vehicle exterior; features, controls and displays; heating, ventilating and air conditioning (HVAC); audio, entertainment and navigation; and seats. Initial quality is determined by the average number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.

The industry averages 70 PP100 in 2016, compared with 82 PP100 in 2012. The numbers of reported problems related to vehicle noise and function have dropped by 6 PP100 and 3 PP100, respectively. However, design-related problems do not show an improvement in the same time period, increasing to 19 PP100 in 2016 from 18 PP100 in 2012.

“Strong focus over the years on manufacturing execution is yielding results,” said Kaustav Roy, director at J.D. Power in Singapore. “Customers are clearly appreciating the same by reporting fewer problems during their initial vehicle ownership.”

Roy added, however, that the challenge lies in aligning vehicle design with a set of optimized requirements for customers in Indonesia. “Given the nature of driving conditions in Indonesia, customer sensitivity toward comfort and ease of driving is likely to increase,” he said. “Manufacturers that are able to address these areas in overall vehicle design will likely be in a better position to differentiate their products and build better advocacy for their brands.”

Key Findings

  • Owners of compact cars report the fewest number of problems (39 PP100), while entry compact owners report the highest number of problems (91 PP100).
  • The two most frequently reported problems are in the vehicle interior and HVAC categories: mats won’t stay in place (2.7 PP100) and windows fog up a lot/ don’t clear as wanted (2.5 PP100).
  • Vehicle usage has a bearing on initial quality issues. Initial quality among customers who drive more than 1,000 kilometers per month is 85 PP100, compared with 54 PP100 among those who drive fewer than 1,000 kilometers per month.
  • Repeat buyers tend to report more initial quality issues than first-time buyers (100 PP100 vs. 61 PP100, respectively). The biggest difference is observed in design-related issues, which is 15 PP100 more among repeat buyers than among first-time buyers.
  • More than half (51%) of owners who are pleased/delighted with the quality of their vehicle (providing ratings of 8 to 10 on a 10-point scale) say they “definitely would” recommend their vehicle to family and friends, while only 23% of those who are disappointed/indifferent (ratings of 1 to 7) say the same.

2016 Indonesia IQS Rankings

Honda receives two model-level awards: the Honda Brio Satya in the entry compact car segment (59 PP100) and the Honda BRV in the entry SUV segment (44 PP100).

The Toyota Fortuner (45 PP100) receives an award for ranking highest in the SUV segment and the Suzuki Ertiga (55 PP100) receives an award for ranking highest in the entry MPV segment.

The 2016 Indonesia Initial Quality Study (IQS) is based on evaluations from 3,490 owners who purchased their new vehicle between September 2015 and August 2016. The study includes nine brands and 38 passenger car and utility vehicle models. The study was fielded from March through October 2016.

Media Relations Contact

Geno Effler; Costa Mesa, Calif., USA; 714-621-6224; media.relations@jdpa.com

About J.D. Power in the Asia Pacific Region

J.D. Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding J.D. Power and its products can be accessed through the internet at asean-oceania.jdpower.com.

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Media Contacts

Costa Mesa, California
(714) 621-6224