Quality Gap Between Domestic and International Car Brands in China Narrows, J.D. Power Finds

SHANGHAI: 5 Sept. 2024 – Domestic car brands in China have gradually narrowed the quality gap with international bands over the past three years, according to the J.D. Power 2024 China Initial Quality Study (IQS), released today. Overall, initial quality average is 212 PP100, 8 PP100 increase from 2023, with quality scores for domestic, international and premium brands scoring 216 PP100, 209 PP100 and 213 PP100, respectively. Domestic brands’ performance in the driving assistance category has remained consistent the past three years, surpassing international mass market brands and premium brands noticeably, thus closing the gap.

Additionally, problems per 100 vehicles (PP100) for premium brands has risen for two consecutive years with a total increase of 21 PP100, compared to a total decrease of 10 PP100 for domestic brands. A lower score reflects higher vehicle quality.

"Compared with significant increase of new energy vehicle (NEV) problems for three consecutive years, problems with internal combustion engine (ICE) vehicles have remained relatively consistent for three years,” said Elvis Yang, general manager of the auto product practice at J.D. Power China. “This highlights how the maturity and stability of the entire supply chain system remain the comparative advantage of traditional ICE manufacturers. However, as these manufacturers are facing constant pressure from NEVs in the increasingly competitive Chinese auto market, maintaining status quo doesn't guarantee maintaining market share. Traditional ICE manufacturers should accelerate their pace of improvement, deeply explore target users' scenario-based needs and thoroughly understand those needs for personalized experience. Doing so will help transform product characteristics into value noticeable to users."

Following are additional findings of the 2024 study:

• Cabin comfort increasingly important: Comfort-related problems account for more growth, with climate and seats category once again each having four problems among the top 20. Compared with 2023, the proportion of seat problems has increased the most, with an increase of 1.4%, and the proportion of climate problems has increased 0.8% among last two years, which indicates continuous increase in users' attention to cabin comfort. Besides rising awareness of cabin comfort, vehicle exterior still ranks top problem category, which has been the most problematic for three consecutive years among the nine problem categories, accounting for 15% of total quality complaints.
• Driving assistance parking cameras problematic: Driving assistance camera problems—such as poor quality, image too small, dirty lens and bothersome alerts—have increased to 10 PP100, an increase of 2 PP100 from 2023.
• Female drivers have more problems with ICE vehicles: Compared with male drivers, female drivers have more quality complaints about ICE vehicles. Females have 1.2 PP100, 2.2 PP100 and 2.3 PP100 more problems than males in driving experience, infotainment and powertrain, respectively.

Highest-Ranked Brands and Models

Porsche ranks highest in initial quality among premium brands with a score of 192 PP100. Lexus (207 PP100) ranks second and Cadillac (211 PP100) ranks third.

GAC Honda ranks highest in initial quality among mass market brands for a fifth consecutive year, with a score of 195 PP100. Dongfeng Honda (198 PP100) ranks second and GAC Toyota (200 PP100) ranks third.

Chery ranks highest in initial quality among Chinese domestic brands with a score of 203 PP100. Geely (204 PP100) ranks second and GAC Trumpchi (206 PP100) ranks third.

There are 20 models from 15 brands receiving awards across 18 segments in the 2024 study.[1]

• Dongfeng Honda models ranking highest in their respective segments are Honda Civic and Honda Elysion.
• GAC Honda models ranking highest in their respective segments are Honda Fit, Honda Accord and Honda Avancier.
• Mercedes-Benz models ranking highest in their respective segments are Mercedes-Benz E-Class and Mercedes-Benz S-Class.
• SAIC Volkswagen models ranking highest in their respective segments are Volkswagen Lamando L and Volkswagen T-CROSS.

Other models ranking highest in their respective segments are Buick Envision S, Changan CS35 Plus, Chery Tiggo 7 Plus, Volkswagen Golf, GAC Trumpchi Emkoo, Land Rover Range Rover, Lexus NX, MG 5, Nissan Tiida, Porsche Macan and Volvo S60.

The study, now in its 25th year and in its fifth year of synchronously launching the new IQS platform in China and the United States, measures initial vehicle quality by examining problems experienced by new-vehicle owners within the first two to six months of ownership. Overall initial quality is determined by problems cited per 100 vehicles. The study measures new-vehicle quality by examining problems in two segments: design-related problems and defects/malfunctions. Specific diagnostic questions include 218 problem symptoms across nine categories: exterior; interior; driving experience; features/controls/displays; infotainment; climate; seats; powertrain; and driving assistance.

The 2024 study is based on responses from 31,942 ICE vehicle owners who purchased their vehicle between June 2023 and March 2024. The study includes 221 models from 48 different brands and was fielded from December 2023 through May 2024 in 81 major cities across China.

To learn more about the China Initial Quality Study (IQS), please visit: china.marketing@jdpa.com.

About J.D. Power

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies. Established in 1968, J.D. Power has offices serving North America, Asia Pacific and Europe. For more information, please visit china.jdpower.com or stay connected with us on J.D. Power WeChat and Weibo.

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Shen Wang; Shanghai;+ 86 21 8026 5719; shen.wang@jdpa.com

Geno Effler; J.D. Power, USA; 714-621-6224; media.relations@jdpa.com

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1 Awards are sorted in alphabetical order.