Overall New-Vehicle Initial Quality improvement

Singapore, 21 October 2009 - Overall new-vehicle initial quality in Malaysia has increased notably from 2008, according to the J.D. Power Asia Pacific 2009 Malaysia Initial Quality StudySM (IQS) released today.

The study, now in its seventh year, examines new-vehicle quality during the first two to six months of ownership. The study measures more than 200 problem symptoms covering eight vehicle components: vehicle exterior; driving experience; features/controls/displays; audio/entertainment/navigation; seats; HVAC; vehicle interior; and engine/transmission. All problems are summarized as the number of problems reported per 100 vehicles (PP100). Lower PP100 scores indicate a lower rate of problem incidences and higher performance.

Overall initial quality in Malaysia averages 136 PP100 in 2009, improving by 22 PP100 from 2008. Improvements have occurred in 2009 in all eight component areas examined. Vehicle exterior issues and problems related to the driving experience represent nearly 50 percent of total reported problems.

“It is critical to provide high levels of initial vehicle quality, as this may have a considerable impact on both customer retention and customer acquisition, particularly through recommendations,” said Taku Kimoto, general manager for Malaysia at J.D. Power Asia Pacific. “In the Malaysia market, friends or relatives are the most commonly referenced source of information by new-vehicle buyers when they are deciding which make or model to buy.”

The study finds that 60 percent of customers who say they are “delighted” or “pleased” with the initial quality of their vehicle (providing a rating of eight or higher on a 10-point scale) said they “definitely would” recommend their model to their friends and relatives. In comparison, only 26 percent of those customers who report being “indifferent” or “disappointed” (providing a rating or seven or below on a 10-point scale) say they “definitely would” recommend. Similarly, 21 percent of “delighted” and “pleased” customers say they “definitely would” repurchase the same make, while only 14 percent of “disappointed” and “indifferent” customers say the same.

The Perodua Myvi ranks highest in the compact car segment for a third consecutive year with 127 PP100, followed by the Proton Savvy (154 PP100) and the Perodua Viva (186 PP100).

The redesigned Honda City ranks highest in the entry midsize car segment with 76 PP100. The Toyota Vios (107 PP100) ranks second in the segment, while the Proton Saga (158 PP100) ranks third.

In the midsize car segment, the Toyota Corolla Altis ranks highest with 80 PP100, followed by the Honda Civic (103 PP100). The Nissan Sylphy, which was launched in June 2008, ranks third with 109 PP100.

The Toyota Innova ranks highest in the MPV/van segment for a second consecutive year and achieves a score of 85 PP100. Following the Toyota Innova in the segment rankings are the Nissan Grand Livina (89 PP100) and the Toyota Avanza (100 PP100).

With a score of 66 PP100, the Isuzu D-max ranks highest in the pickup segment, followed by the Toyota Hilux (94 PP100) and the Mitsubishi Triton (101 PP100).

The 2009 Malaysia Initial Quality Study is based on responses from 2,874 new-vehicle owners who purchased their vehicle between September 2008 and May 2009. Vehicles evaluated include 52 passenger car, pickup and utility vehicle models across 15 brands. The study was fielded between March and July 2009.

The Malaysia Initial Quality Study is one of three consumer-based studies that J.D. Power Asia Pacific conducts in Malaysia. The 2009 Malaysia Customer Service Index (CSI) Study, which measures new-vehicle owner satisfaction with after-sales dealership service, was released in July 2009. The 2009 Malaysia Sales Satisfaction Index (SSI) Study, which examines new-vehicle buyer satisfaction with the sales and delivery experience, was released in August 2009.