NEV startups take lead in customer satisfaction

Chinese electric vehicle startups are doing a better job than both international carmakers and local established marques when it comes to customer satisfaction, according to a J.D. Power study.

New players, including Xpeng and Zeekr, scored 806 out of a possible 1,000 points, 10 points higher than the average. The study evaluated the ownership experience of new energy vehicle owners in the first two to 12 months after their purchases, said J.D. Power on Thursday.

International brands followed with a score of 802, while traditional Chinese brands lagged behind the industry average with 792.

The scores were based on evaluations of different customer groups on various measures at three experience stages of purchase, usage and service.

Among them, the startups had a 16-point lead in the score for service experience (809) compared with international brands, and a 23-point lead over traditional Chinese brands.

The study also found that the usage experience stage (806) is the peak experience of the whole ownership journey, while the purchasing experience stage scored 788, ranking lowest among the three experience stages, and indicates there is still a great deal of room for improvement.

Li Auto ranked No 1 in customer experience value among Chinese brands with a score of 816. Xpeng followed with a score of 815. Geometry and Zeekr, both brands newly established under Geely, came third in a tie.

Of the international brands, BMW topped the list with a score of 814. It was followed by Mercedes-Benz with a score of 812. SAIC Volkswagen, the German carmaker's Chinese joint venture, and Tesla ranked third in a tie on 802 points.

The J.D. Power study, the first dedicated to the NEV market, was based on responses from 3,968 NEV owners who purchased their vehicles between June 2021 and May 2022.

A total of 41 brands were involved in the study conducted from June to July 2022 in 56 major cities across China.

"The reason why startups seize the lead position is that they have a keen sense of customers' needs. User-centered and demand-driven, the startup sector has achieved remarkable results in customer operation," said Ann Xie, general manager of the digital retail consulting practice at J.D.Power China.

She said for automakers, whether startups or established brands, the goal of customer experience management needs to be changed. "It is imperative to enhance customers' experience and increase their loyalty for driving brand growth."

J.D. Power also found in the study that NEV makers prefer to glean information online.

Up to 16 percent of the respondents used carmakers' apps, which is 4.1 percentage points higher than among gasoline vehicle buyers.

It was also found in the study that the respondents who frequented the carmakers' apps tend to rate the brands higher.

Those who logged in to the apps several times a day gave a score of 830, compared with 782 points among vehicle owners who logged in once every two to three days, said J.D. Power.