Reputation Study:
Automobile Industry
Introduction
Unleashing Excellence: Navigating the Road of Innovation
In the world of wheels, the Indian Automobile Industry isn’t just a sector; it’s a testament to brilliance and economic resilience. Imagine an industry powerhouse, raking in a colossal INR 8.7 trillion* in revenue, fueling the livelihoods of 19 million individuals, and crafting 27 million units in its production symphony.
Ranked as the world’s third-largest auto market, this industry operates in diverse segments. Picture the grandeur – passenger vehicles leading the charge with a dominating 58% share of the industry’s INR 5 trillion worth, followed by two-wheelers at INR 1.8 trillion (21%), commercial vehicles at INR 1.7 trillion (19%), and the humble three-wheelers at INR 0.17 trillion (2%). Each plays a crucial role in the rich narrative of this automotive saga.
Yet, in this realm of roaring engines and dynamic design, the industry faces speed breakers. Intense market competition, occasional governance lapses, and regulatory landscapes test its mettle. It’s a high-stakes balancing act – sustaining growth while crafting an innovative, greener future.
Enter game-changing technologies – electric vehicles, self-driving cars, interconnected systems – scripting a new chapter with possibilities wrapped in intricate challenges. The stage is set, reshaping the industry’s destiny to meet environmental mandates and surpass the discerning expectations of its clientele.
On this journey to unravel the industry’s nuances, Eminence Strategy Consulting conducted a meticulous Reputation Study. Our journey delved into the digital discourse and news from Jan-Sep’23, culminating in a reputation score of 36.7. The Indian automobile industry cruises on brand visibility and ethical business conduct, but customer service experiences put the brakes on its reputation.
This report is a voyage into the finer details influencing the industry’s reputation. Diving deeper, we provide actionable insights, guiding the Indian automobile industry toward a future marked by strategic brilliance and unwavering trust.
Buckle up; the road ahead is paved with insights, innovation, and the relentless pursuit of excellence.
*India Automobile Sector Value Report*
A Holistic Approach to Assessing Multiple Reputation Dimensions
Auto Industry Coverage
Jan to Sept 2023
Data Sources
Social Media Conversations I Employee Reviews I Customer Reviews I Media Coverage
Scoring Scale
POOR
(<0-20)
Moderate
(21-40)
Average
(41-60)
Good
(61-80)
Excellent
(81-100)
Our analysis shows that the overall reputation score of the Automobile Industry from
January to September 2023 is 36.7, representing a moderate score with significant upside potential
Each driver has a defined weightage as per the Eminence Reputation score model
RepScore for Auto Industry
No Data Found
-67.6
Customer Experience
No Data Found
97.1
Responsible Business Practices
No Data Found
99.3
Brand Exposure
No Data Found
59.1
Workplace Character
Click on each driver graph for insights
Attributes driving the Positive Reputation Score
Environmental & Social responsibility; Intelligent product launches aligned with BS6 Phase II emission norms
Attributes driving the Negative Reputation Score
Customer grievances, product quality & service quality issues
Customer Experience
Manufacturing Flaws and Poor Service Standards Triggered Customer Dissatisfaction and Complaints
In the vast realm of automobiles, owning a vehicle transcends mere possession; it's a dream for many. The entire buying journey intricately weaves through complex consumer behaviour, marked by substantial investment and heightened perceptions at each stage.
Diverse reviews highlight customers' applause for seamless performance, durability, and intelligent features, elevating the customer's journey beyond mere satisfaction. Extending warranties emerges as a key driver of delight, creating a positive ripple effect as satisfied customers actively recommend their vehicles to others.
The digital evolution of the auto sector goes beyond online purchases; showcasing a commitment to sustainability. Initiatives like an e-market for pre-owned commercial vehicles and easy exchanges exemplify a transformative shift. Companies strategically position themselves on e-commerce platforms, amplifying customer ease, choices, and environmental consciousness.
With an overall Customer Experience score of -68, it is evident that the dissatisfaction among customers substantially outweighs the positive experience. The consumer forums amplify customers’ discontent, highlighting manufacturing defects, component shortages, safety concerns and rusting in new vehicles.
Empathy gaps and service issues draw sharp criticism, raising concerns about unfulfilled promises, disputes on discounts and refunds, tall repair assurances, which are often unmet and the use of duplicate parts. While nearly 95% of the customers complain about the service quality, over 75% complain about the product quality. Both form the base of the industry and a negative experience significantly influences the perception of customers.
Score
No Data Found
While celebrating specific vehicle features and digital transformations, the industry must make a focused drive to address challenges in product and service quality, along with transparency. Prioritizing these enhancements ensures the auto industry delivers a more satisfying experience for customers on their journey of vehicular dreams.
Top Mentions
-67.6
(POOR)
Out of the total customer reviews, over 90% were related to Product & Service Quality, most of which were negative in sentiment
Responsible Business Practices
Sustainability, Environmental Safety, and Societal Contributions applauded
Sustainability echoes loud in the automotive corridors, steering a massive transformation toward environmentally friendly mobility solutions. The industry accelerates toward electrified and alternative technologies, coupled with greening core operations.
Embracing renewable energy, investing in green infrastructure, and championing material circulatory initiatives exemplify this commitment. For instance, the introduction of Registered Vehicle Scrapping Facilities (RVSF) in India represents a commitment to ensuring eco-friendly processes for recycling end-of-life vehicles.
Initiatives like "Nurture Nature“ promote bicycle usage in urban areas, to reduce congestion and enhance air quality are a testimony to the industry’s commitment to sustainability. Social responsibility extends to training women to drive commercial vehicles, proactive safety measures like recalls, and initiatives supporting employability through engineering skills training.
Aligned with regulatory mandates, auto manufacturers are launching vehicles compliant with BS6 Phase II emission norms. This strategic move not only positions the industry as environmentally and socially conscious but also underscores its dedication to the greater good.
Despite the automobile sector's substantial efforts in social and environmental responsibility, there have been isolated instances of missing regulatory norms or governance and compliance lapses, which create a dent in the industry’s overall stakeholder perception. Still with an overall score of 97.1, auto industry is lauded for its Responsible Business Practices.
Score
No Data Found
The automotive industry’s dedication to sustainability, safety, and societal contributions shines, despite isolated compliance and governance incidents. To fortify their image, continued attention to environmental accountability, safety, and prompt addressing of any unclean practices is paramount.
Top Mentions
97.1
(Excellent)
Out of the total media coverage, over 48% were focused on Environmental Responsibility
Brand Exposure
Innovation, brilliant marketing and strategic partnerships shape the complex image amid safety and governance challenges
The industry is in a technological up move, with electric vehicles grabbing the media spotlight. Automakers strategically showcase both product advancements and intelligent mobility, seamlessly aligning with the phased removal of diesel vehicles in compliance with BS 6 emission norms. This underscores the industry's unwavering commitment to sustainability.
The industry is scoring the best for its efforts to collaborate with other industries to bring in operational efficiencies, financing ease and social commitments. For instance, most of the companies in the automobile industry have partnered with banks and insurance companies to provide superior customer experience. Some of the companies have partnered with other corporates to expand rural reach. Such collaborations become increasingly important in retail and commercial ventures, setting new benchmarks in urban mobility, and ensuring affordable access to the best-in-class ride while taking pioneering steps towards green commuting.
Despite challenges like new norms, insurance costs, and fuel price hikes, the industry adapts with creative advertising and personalized marketing for rural demographics. Narratives extend beyond product features, offering a comprehensive perspective on industry contributions to growth, technological advancements, and intelligent mobility promotion, adhering to BS 6 emission norms. This nuanced portrayal in the public platform significantly contributes to a positive sector perception among key stakeholders.
Incidents like receiving low safety ratings in the Global NCAP crash test and governance lapses present challenges, impacting the industry’s sentiments. Such incidents reshape stakeholder perception, casting a less favourable light on the sector's image. Most auto companies have carefully crafted their brand narratives despite the unpleasant real-life experiences of customers resulting in a brand exposure score of over 99.
Score
Top Mentions
99.3
(Excellent)
No Data Found
The industry’s positive standing thrives on technological upgrades, compliance with environmental norms, financial partnerships, cross-industry collaborations, and positive media coverage.
However, challenges arise from safety ratings and governance lapses, denting the industry’s image.
Out of the total media coverage over 55% emphasized on Product Strategy
Workplace Character
Employee Responses Reflect a Balanced Blend of Positive and Negative Feedback
In the auto sector, concerted efforts by industry players to promote gender diversity have resulted in a positive work environment. The companies are making concerted efforts to foster an environment where women are given ample opportunities to not only join the workforce but also grow. A noteworthy example is that of a prominent auto player inaugurating a solely women-operated manufacturing facility. Another initiative involved actively encouraging and training women to drive commercial vehicles, breaking traditional norms.
Amidst such positive initiatives, social media reviews by employees highlight the exceptional work environment existing in the sector. Progressive policies prioritizing work-life balance garner positive attention on social platforms. These practices contribute to a workplace culture celebrated for its inclusivity and support in the dynamic auto industry.
Despite the positive strides, workforce challenges persist in the auto sector. Concerns such as job security and limited advancement opportunities have emerged. While over 62% of employee reviews express positivity for Work-life balance, discussions about strenuous schedules contributing to employee frustration and impacting personal well-being are also amplified. Although there are initiatives for career growth, perceived executive favoritism showcases discontent and suggests uneven growth opportunities.
Compounding these challenges is dissatisfaction with compensation packages, perceived as inadequate for the workload, negatively shaping the industry's workplace perception. Despite such negative feedback from employees, the Workplace Character aspect received a score of 59.1, indicating a balanced overall assessment of the workplace.
Score
No Data Found
Top Mentions
59.1
(Average)
The auto industry is fostering a remarkable work culture with a focus on inclusivity and support. However, addressing challenges such as job security, career progression, and perceived favoritism is vital to enhance the overall work climate and preserve a positive industry image.
Out of the total employee reviews over 55% were for Culture & Values
Potential Reputation Risks
About 95% of customer feedback shows discontent among customers for Service quality. Therefore this emerges as one of the pivotal factors influencing reputation in the auto sector. Buying a vehicle is an emotional and personal decision that entails high expectations. Unfortunately, many customers encounter disappointment due to a lack of empathy from service representatives. These subpar experiences not only tarnish individual brand images but also impact the industry’s long-term reputation.
To address this risk, auto companies must prioritize training for frontline staff, fostering empathy in customer interactions. Collaborating with service centres and understanding gaps is essential. Ensuring the availability of parts further contributes to meeting customer expectations, enhancing service quality, and positively influencing the industry’s perception. Investing in these aspects is crucial for bolstering overall reputation and customer satisfaction in the competitive automotive landscape.
About 75% of customer feedback shows that the customers are dissatisfied with the product quality and availability. Therefore, ensuring top-notch product quality is essential for the automobile sector. Manufacturing defects, component shortages, and safety concerns lead to customer dissatisfaction, given the emotional connection individuals often have with their vehicles. High-value possessions demand meticulous attention, and any deviation from customer expectations results in significant frustration.
To mitigate reputation risk, companies must invest in clear communication about product features, aligning promises with actual customer experiences. This dual focus on quality and effective communication is vital, as customers’ feedback transcends rapidly across diverse channels.
Automobiles are complex products that require a sophisticated supply chain. However, this complexity also poses significant credibility challenges, as it can lead to operational disruptions, delays, and quality issues. If any of these problems reach the final production stage, they can result in safety recalls, credibility loss, and consumer harm, causing negative publicity and legal consequences.
To navigate potential disruptions, automobile companies must adopt robust supply chain management practices. At the same time, effective communication with customers about supply chain risks and how companies are managing them or are prepared for them further strengthens the industry’s resilience, safeguarding its image, fostering stakeholder trust, and maintaining a competitive edge.
Recommendations
Banks are launching new products, while customers are still grappling with the existing products. Closing the service gap is essential for a smoother customer experience. Customers are putting their grievances on public platforms, that reflect a disparity in the flawless user experience committed by the banks. A focus on educating customers on better usage of digital platforms can mitigate the concerns.
The buzz around sustainable practices has increased, and the narrative is mainly steered by foreign banks. Private banks and more importantly, PSBs should increase their focus on ESG in order to remain relevant to the stakeholders, especially the environment conscious future customers.
Employees are the biggest brand ambassadors and turn into loyal customers when given a positive experience. While a lot has been done by the banks in terms of workplace best practices, negative reviews on public platforms reflect a high level of discontent amongst the personnel. This needs to be addressed as a priority for banks to continue being among the preferred sector by the current and potential workforce.
Eminence Strategy’s Corporate RepScore
RepScore: A Novel and Comprehensive Way to Measure Corporate Reputation
Reputation is a broad concept that covers all aspects of a business, from the minor details to the major decisions. However, there is no specific criteria or tool that can capture an organization’s reputation or provide a consolidated rating. To address this gap, Eminence developed the concept of “RepScore”, a composite score that measures an organization’s standing based on publicly available data and credible industry sources of information.
This is a unique and holistic Reputation Measurement Score that is based on globally accepted parameters. The dashboard provides a complete view of an organization’s reputation across its stakeholders. To understand the most influential factors of reputation, an exploratory study was conducted across CEOs and CXOs. Internal focus group discussions (FGD) were also conducted to identify a comprehensive list of factors that affect corporate reputation. The reputation drivers that were identified are based on well-researched ideas and feedback from this stakeholder group and secondary research sources.
The study considers 50+ data variables, 10,000+ business-responsible conversations across news and social media, and 1000+ customer and employee voices. The score is calculated based on scientifically designed weights and statistical algorithms, validated by research experts.
The findings are presented at a category level for this study. For individual company reports, please contact us at +91 98339 81100 or info@eminencestrategy.com
50+
Data Variables
10,000+
Business responsible conversations across news & social media
1,000+
Customer & employee voices
The score is arrived at based on scientifically designed weights and statistical algorithms, corroborated by research experts.
Team Eminence
Our Expertise: Branding, Communications, Brand Research, and Data Analytics
We are a team of experienced professionals who have worked across various business domains such as Banking and Financial Services, IT, FMCG, Entertainment, Automobiles, Telecom, Manufacturing, Credit Ratings, etc.
We have a diverse background in Journalism, Economics, Brand Research, and Media Measurement, which gives us a strong and collective knowledge base for our clients.
Mitu Samar, the Founder & CEO of Eminence Strategy Consulting, is
a reputed reputation consultant with 20 years of experience. She has worked with renowned companies in BFSI, Credit Ratings & Logistics sectors before starting Eminence Strategy Consulting (https://eminencestrategy.com/), a firm that helps organizations and individuals to build, establish, and protect their reputation through stakeholder engagement.
She is also an independent director on the boards of the Times Internet Limited and Aegon Life Insurance.