An individual’s willingness to pay a premium is driven by immediate needs. As today’s customer evolves, the focal aspects of premiumisation has shifted from functionality to experience. These aspect may translate as personalised convenience, omnichannel browsing or even exclusivity in customer support.
Differentiating at the right journey touchpoints is the key to value creation
Pre - purchase
Purchase
Post - purchase
Sales staff support in feature assessment is crucial and highly influences customer decisions during the pre-purchase stage
Q1 - Was I able to assess my options well and arrive at a decision?
Voice of customer insights
Sales staff support in assessing features can significantly improve customer experience during the pre-purchase
stage –
- “When you contact the brand or visit the store, they should always help you. When I bought car X, the team was very helpful. They contacted us from time to time and addressed all our inquiries very quickly and nicely"
- “How sales staff react when we go, what service they are giving us, how they are telling us about the car, all that is very important.”
Prompt follow-up enhances customer engagement and interest –
- “I contacted Brand A and B to see the petrol segment of the car, but Brand B didn't call me back even after a month. However, with brand A, I didn't need to follow up. They called and scheduled a meeting.”
The segment excels in customer-prioritised attributes such as ease of taking test drives and availability of financing options
Q2 - Was the purchase experience smooth and comprehensive?
Voice of customer insights
Customers value the ease of taking a test drive while making a purchase decision –
- “We always take a test drive before buying a car. There was no test drive available for the model I wanted. I was familiar with the brand and model, but for someone who needs a firsthand experience before considering it for purchase, test drive is important“
- “Before getting my car, I did many test drives with all brands I considered. Brand A even brought it to my place, and I didn't have to travel”
Customers cited that the availability of financing options is a basic expectation –
- "They did a smooth loan process. There weren’t any heavy technical details to understand. It was pretty simple.”
Customers value a seamless ownership experience from the delivery to the quality of service facilitation
Q3 - Did the brand's product and services meet my expectations post product purchase?
Voice of customer insights
Customers value a smooth car delivery experience –
- "They come to your house and office to collect payments and checks for finalising the purchase. They provide many such convenient facilities“
Service facilitation was cited as a crucial factor in building brand trust post-purchase –
- "My brother has been using car X for the last 10 years, so I was impressed by the car service and the maintenance service they provide“
- “If we go to metro cities, Brand A has a good servicing system in place. If you go to a remote village and have a problem, the local mechanic can easily fix it. We don't trust that other cars will have the same convenience when it comes to this."
Striking the right balance between delighting the customer and the cost of servicing them is key to maximising value
Performance of the segment on the prioritised experience attributes
Customers prioritise a trusted brand for their vehicle purchase, and automakers can improve on the trust factor by
- Maintaining an open and honest communication with customers about vehicle performance, recalls, and service issues
- Showing a commitment to continuous improvement by regularly enhancing vehicle features based on customer feedback and technological advancements.
Automakers are expanding their portfolios to include electric vehicles
- The demand for electric vehicles continues to grow as customers prioritise sustainability and lower running costs.
Strategies used by automakers to improve the service experience for customers
- Implementing digital tools for scheduling service appointments, tracking service progress, and providing real-time updates
- Providing options for vehicle pick-up and drop-off for service appointments, or even mobile service units that can perform maintenance at the customer's location.
While delivery on promised value is desirable, responsive customer support and a trusted brand name will impact retention
Customer segmentation based on satisfaction and loyalty
(percentage share of respondents)
A customer’s retention is dependent on their satisfaction with the brand and their tendency to explore alternatives. ‘Ambassadors’ are highly satisfied customers who will keep contributing to the brand’s success. ‘Switchers’, on the other hand, are always seeking better options. ‘Critics’ as the third segment actively convey negative feedback about the brand if they are not satisfied. Finally, ‘Dependents’ are customers who remain loyal despite low satisfaction due to a lack of alternatives in the market.
51 per cent of the customers are satisfied with their current brand
- Customers advocate for brands that offer a seamless test drive experience
- Brands that consistently deliver on their promised value retain loyal customers.
However, 46 per cent of the customers will opt for an alternate passenger vehicle brand if their expectations are not met on –
- A trusted brand name that assures confidence in the quality, reliability, and overall reputation
- Overall performance, fuel efficiency, safety features, and durability
- Prompt responses, issue resolution, and customer support.
The segment is ensuring transparent communication and pricing, however, there is a need to reevaluate the personalisation strategy
Performance across the KPMG in India's Six pillars of Customer Experience
(Weightage of the pillars to the overall experience requirements)
‘Integrity’ (21 per cent) and ‘Expectation’ (21 per cent) are the key pillars of experience influencing customers’ purchase decisions.
Passenger vehicle brands can meet customer expectations
by –
- Ensuring the vehicles are built to high standards, offering durability, safety, and low maintenance costs
- Incorporating advanced features like smart connectivity, autonomous driving aids, and eco-friendly solutions
- From pre-purchase to post-sale services, ensuring smooth interactions, clear communication and fast problem-solving.
Passenger vehicle brands can improve performance on ‘Personalisation’ by -
- Offering customisation, such as choices in color, interiors, and tech add-ons, to provide a tailored experience for every customer
- Offering personalised tech packages, such as advanced infotainment systems, connectivity options, and custom driving modes, can enhance the user's experience
- For features like satellite navigation, entertainment apps, or driver assistance tools, brands can offer subscription models, allowing customers to pick and pay only for what they need.
The segment can unlock upselling opportunities by prioritising exceptional customer experiences and demonstrating reliable and trustworthy operations
Top experience attributes influencing the customer’s willingness to pay
Customers prioritise brands that deliver on promises, with 33 per cent willing to pay more for a reliable and trusted brand name
- “Certain brands are preferred by Indian families like us because they have consistently given our peers excellent value, and we have seen high reliability on their vehicles, features, and service.”
28 per cent of the customers will pay more for -
- Receiving empathetic service from the staff at dealerships
- Consistent delivery on performance, features, and comfort as advertised by the brand, complemented by excellent service.
Customers expect passenger vehicle brands to provide access to a wide range of models and variants at dealerships. Notably, 26 per cent of customers are willing to invest in a higher-priced variant if they have the opportunity to evaluate and test-drive it beforehand.
Our customer experience (CX) insights across sectors
Key Contacts
- This content sets forth the views of KPMG based on the completeness and accuracy of responses received from the participants and any assumptions that were included. If any of the responses is not complete or accurate, it could have a material effect on our conclusions.
- In accordance with its policy, KPMG advises that neither it nor any partner, director or employee undertakes any responsibility arising in any way whatsoever, to any person in respect of the matters dealt with in this content, including any errors or omissions therein, arising through negligence or otherwise, howsoever caused.
- While preparing the content, we have assumed the authenticity of all the responses or information referred or provided. We have not independently verified the accuracy, completeness, correctness or authenticity of the same. We assume no responsibility for content or any responses or information referred or provided.
- We have not performed an audit and do not express an opinion or any other form of assurance. Further, content is not intended, nor should it be interpreted to be legal advice or opinion.
- In connection with the content or any part thereof, KPMG does not owe duty of care (whether in contract or in tort or under statute or otherwise) to any person or party to whom the content is circulated to and KPMG shall not be liable to any party who uses or relies on this content. KPMG hereby disclaims all responsibility or liability for any costs, damages, losses, liabilities, expenses incurred by such third party arising out of or in connection with the content or any part thereof.
- The content contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
- By reading the content the reader shall be deemed to have accepted the terms mentioned hereinabove.
KPMG Assurance and Consulting Services LLP, Lodha Excelus, Apollo Mills Compound, NM Joshi Marg, Mahalaxmi, Mumbai – 400 011 Phone: +91 22 3989 6000, Fax: +91 22 3983 6000.
© 2025 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.