The Hindu Business Line : Happier on two wheels

The 2006 Motorcycle Total Customer Satisfaction (MTCS) study, conducted by TNS Automotive, is considered the largest syndicated motorcycle study in India.

It represents the responses of more than 8,700 new-motorcycle buyers on more than 50 different two-wheeler models in key areas of sales satisfaction, product quality, performance and design, after-sales service, brand image and cost-of-ownership. The TCS index score provides a measure of satisfaction and loyalty that a particular model or brand enjoys amongst its customers.

For an automobile industry segment that is relatively poorly mapped for trends and marketing data, the TNS report throws up some interesting information.

TNS' study clearly shows that the two-wheeler industry as a whole has had to improve on its previous benchmarks owing to increased consumer awareness and higher demand for premium bikes. As a result, the manufacturers have had to develop better quality products that are more reliable and which perform better.

Higher average

This is reflected in the higher overall industry average TCS score, which has risen in the 2006 study compared to last year when the levels were stagnant under each category. Strong performance of the new product launches in each segment of the industry coupled with stronger performance by old-time favourite, Hero Honda Splendor+, seems to have driven up the overall customer satisfaction this year.

According to the results of the 2006 TCS study, in the entry-level standard bike segment, the models that scored above the industry average of 78 points were the Hero Honda CD Deluxe, the TVS Star City, the Bajaj Platina and the Bajaj CT100/Deluxe.

In the executive segment, only the Hero Honda Splendor+ managed to go past the industry average. In the hot and happening upper executive (125cc) segment, bikes such as the Honda Shine, the Yamaha Gladiator, the Suzuki Heat and the Bajaj Discover (in that order) had rankings above the industry average.

The TNS study shows that in the premium bikes segment, the TVS Apache came on top, scoring over rivals Bajaj Pulsar 150 and 180 by a large margin in the customer satisfaction parameters .

The Bajaj twins and the Honda Unicorn were the only other bikes with scores higher than the industry average. Amongst cruiser bikes, the Royal Enfield Bullet 350 was the topper with the Bajaj Avenger coming next.

Based on the responses from the large number of new two-wheeler buyers, the TNS study also observes that across the country close to 13 per cent of current motorcycle owners intend to upgrade to a passenger car. It has also been observed that the propensity to upgrade to a car is higher in the North. Among customers intending to shift to a four-wheeler, the budget, as stated by them, indicates that they may not just stop at a Maruti 800, but may go in for premium compact cars such as the Hyundai Santro, the Tata Indica or the Suzuki Wagon R.

Though the number seems small in percentage terms, the absolute number of two-wheeler owners who want to upgrade to a car will affect the dynamics of the industry.

Upgrading intentions

The large base of current motorcycle owners will have a bearing on the growth in the entry and premium compact segments of the four-wheeler market , as, contrary to popular perception, the intention amongst bike users to buy a used car at the time of upgrading from a two-wheeler is less than 10 per cent.

Other interesting trends thrown up by the TNS study include the fact that although the largest segment of the market continues to be the `first new motorcycle buyer', the proportion of additional/replacement customers has grown to 36 per cent in 2006 from 26 per cent in 2003. This is coupled with reduced replacement cycle, from five years to just about four years and six months.

Also to be noted is that this segment of additional/replacement buyers have higher expectations and, hence, manufacturers will have to meetthe rising expectations.

As for future demand, the preference for motorcycles with higher engine capacity is seen more in the West and South than in the other parts of the country, notes the study.

The study was conducted during May-July across 26 cities. TNS Automotive (part of the TNS Global group) conducts market research exclusively for the automotive industry and provides actionable marketing information. It has been conducting a wide range of syndicated studies for both the two- and four-wheeler industries.

These reports include Dealer Satisfaction Study, Brand Health & Needs Segmentation (four-wheeler) Study, Total Customer Satisfaction (four-wheeler) Study, and Used-Car Buyer Study.

In addition to the syndicated studies, TNS Automotive conducts customised market research studies as per the clients' needs in the areas of branding, pricing, positioning, brand tracking and customer satisfaction.

S. Muralidhar

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