The 7th Voice of Chinese Automobile Customers (VOC+) Seminar and Award Ceremony 2023 held in Beijing

Recently, Car Quality Network (www.12365auto.com),a leading domestic platform for collecting information on defective automotive products and handling consumer complaintsin collaboration with Car Research Consulting，held “the7th Voice of Chinese Automobile Customers (VOC+) Seminar and Award Ceremony 2023”in Beijing。

In the speech, Tang Weiguo, Chairman and President of Car Quality Network and Car Research, announced that China's automotive market has exceeded expectations in terms of depth and breadth by 2023. The competition in the industry is accelerating, with service becoming a new high ground for value creation. However, Car Quality Network has witnessed a 23.5% year-on-year increase in valid complaints from car owners during the first eleven months, indicating greater consumer dissatisfaction regarding automobile product quality as well as dealership and after-sales services compared to last year. Companies should focus on accurately breaking through basic-level and service-level aspects to capture emerging user demands, achieve transformation, and strengthen their business moat in the service sector.

Lang Xuehong, the Deputy Secretary General of the China Automobile Dealers Association, thinks that although a clear profit model for after-sales service in the new energy vehicle market is lacking right now, there is potential profitability in providing repair and battery replacement services within the used car market. To succeed, companies should prioritize holistic vehicle management and offer comprehensive one-stop after-sales solutions encompassing insurance coverage along with maintenance and related services.

Li Xiaogang, the Deputy General Manager of Changan Auto Marketing Service Center, shared his thoughts and practices on constructing the service system for new energy vehicles. He emphasized that users are the driving force behind a brand's continuous progress, and serving users is an ongoing commitment. Changan Auto continuously enhances its distribution channels for ordering, delivery, and after-sales services by establishing a seamless connection between offline and online services to create 'Smart Services' for users. This approach has gained recognition from both the industry and customers.

This year, the Car Quality Network has experienced a significant increase in complaint cases handled in the service sector. The organizers are continuously clarifying complaint dimensions through their latest research report, identifying key factors to alleviate customer grievances and proposing new approaches to address complaints while gaining insights into emerging issues related to enhancing service value.

According to the “Analysis Report on Complaints Received by 12365auto.com from January to October 2023”,non-new energy vehicles account for 67.3% of total complaints, but there has been a significant increase in complaints related to new energy vehicles. New hotspots for quality complaints include hybrid mode conversion failures, gasoline pump malfunctions, and faults in driving safety assistance systems. In terms of service-related complaints, prominent issues include incomplete processes and discrepancies between vehicle entertainment systems and promotional claims. The number of these complaints reached 11,649 and 8,938 respectively, with the latter showing an almost 1.5-times increase compared to 2022.

The report also shows that price fluctuations have become a new focus of complaints in other categories, and consumers are increasingly sensitive to changes in user rights policies introduced by companies.

Li Xi, the Standing Vice President and editor-in-chief of Car Quality Network represented that the awareness of consumer rights protection continues to grow, and it is expected that the total number of valid complaints for the year will reach nearly 170,000 cases in 2023.  

Based on the "Research Report on Complaint Behaviors of Chinese Passenger Car Users in 2023" the average score of the CCRI is 352 in the industry which fell in the third year. Leading complainants have grown in number, indicating an increasing inclination towards collective actions.

According to the research, user demands are reflected in problem-solving, compensation provision, and receiving care. Users have the least tolerance for service issues related to quality. The overall efficiency of complaint resolution remains low, and users are experiencing an increasing trend of additional expenses.

Zhang Yue, the Senior Vice President of Car Research, believes that each complaint has the potential to trigger significant events. He advises companies to avoid exaggerating their product's capabilities in marketing and adhere to business ethics when selling products and addressing issues. Additionally, he suggests management exercise discretion when posting information on online platforms for a more positive impact.

Based on the "Research Report on Satisfaction with After-sales Service of Chinese Passenger Cars in 2023", overall satisfaction with after-sales service has slightly increased this year, led by domestic and new energy brands over luxury and joint venture brands. Ma Wenxiao, research manager from Car Research noted a slight rise in vehicle owners consistently opting for maintenance services at dealers, particularly among female users. The decline in user satisfaction regarding service communication and delivery has halted, showing signs of improvement. Among all brand types, new energy brands demonstrate the highest execution rate across various service processes; however, both joint venture and domestic brands require enhancements in after-sales appointment services.

Zhang Zhaohu, Senior Vice President of Car Quality Network, presented the findings of the "Research on the Current Status and Trends of Chinese Auto Services: Voice of the Chinese Auto Customers (VOC+)". He noted a fluctuating increase in service-related complaints in recent years. The most common issues were related to system upgrades, particularly price changes. Other factors impacting user experience included unmet expectations from upgrades, discrepancies between advertising and actual vehicles, service fees, and rights adjustments. Brands are advised to prioritize digitalization, centralized demand management, convenience enhancement, and content diversification for improved service quality.

During the meeting, the organizers also released the industry's first research monograph on complaint handling titled "Theory and Practice of Automotive User Complaint Response". This book was co-authored by experienced training instructors in responding to complaints, aiming to enhance customer complaint handling and standardized management capabilities for after-sales service personnel through classic theories and 54 practical case studies covering 9 major categories of complaint resolution processes.

At the salon dialogue, industry guests and brand marketing experts will discuss topics such as price competition, adapting to new boundaries with innovative services, and enhancing service value from diverse perspectives.

Zhang Zhaohu, Senior Vice President of Car Quality Network pointed out the urgency of addressing frequent price reductions and their impact on service boundaries. Car companies should focus not only on price wars but also on meeting fundamental consumer needs such as purchasing good cars, driving them well, using them effectively, and enjoying excellent services.

Lang Xuehong, the Deputy Secretary General of the China Automobile Dealers Association, emphasized that consumer behavior is evolving in the new era. Service boundaries are determined by consumer demands and will expand alongside changing needs. Therefore, it is crucial to broaden service space and provide efficient, transparent, and fair services. Introducing digitization to after-sales services can enhance satisfaction indicators like first-time repair rates.

Ma Qiji, the Director of China Advertising Association of Commerce Marketing Research Institute, believes that today's market, characterized by high market share but low tolerance and consumer demands for innovative products at affordable prices along with a shift towards service-oriented marketing transformation has led to increased internal competition and speculative behavior among companies. Companies should recognize the dynamic nature of consumer service boundaries while focusing on customer feedback scenarios. This will help guide consumers toward transitioning from seeking cheap yet good products to adopting a more balanced approach considering both quality and price.

Hao Qingfeng, Deputy Secretary General of the Consumer Protection Law Research Association of China Law Society, believed that price fluctuations in automotive products are market behaviors. Blindly reducing prices may raise concerns for businesses. It is suggested that companies prioritize service and treat consumers as "family members". To effectively protect user privacy, it is recommended that the government establishes corresponding laws and regulations while companies strengthen their own protection measures. This will create a reasonable, convenient, and practical channel for extracting user information.

During the conference's award ceremony, Car Quality Network and Car Research presented the prestigious 2023 Outstanding Contribution Award for Chinese Automotive After-sales Service, aiming to recognize exceptional innovators in after-sales service management who have demonstrated growth, breakthroughs, and leadership. Additionally, they also announced the recipients of the China Automotive Voice of Customer (VOC+) series awards.