J.D. Power Asia Pacific Reports: New-Vehicle Quality in Indonesia Improves Considerably in 2013

Honda, Mitsubishi, and Models Receive Initial Quality Awards in Their Respective Segments

SINGAPORE: EMBARGOED FOR RELEASE UNTIL 31 December 2013 — Initial new-vehicle quality, a key consideration in the purchase decision-making process for more than one-half of owners in Indonesia, improves by 8 problems per 100 vehicles (PP100) in 2013, according to the J.D. Power Asia Pacific 2013 Indonesia Initial Quality StudySM (IQS) released today.

More than half (52%) of new-vehicle owners cite quality as one of the primary considerations when deciding to purchase their vehicle. The study also finds that 59 percent of owners cite good reputation/ reliability of the brand as a key consideration in deciding which make and model to purchase.

“Initial vehicle quality, both actual product quality and consumers’ perceptions related to it, is extremely important to new-vehicle shoppers as they go through the purchase process,” said Rajeev Nair, director at J.D. Power Asia Pacific. “Consumers are more informed about vehicle quality because of the Internet— automotive websites and online forums—and are relying on that information when shopping for a new vehicle.”

Key Findings  Overall initial quality averages 74 PP100 in 2013, an improvement from 82 PP100 in 2012.  Owners of MPVs and SUVs experience the fewest average problems with their vehicle (69 PP100), while owners experience the most (89 PP100).  Among the various vehicle systems evaluated in the study, driving experience-related problems are most commonly cited (16 PP100), followed by problems with the engine/ (13 PP100). At the specific problem symptom level, brakes vibrate/ shudder is the most-frequently cited problem, followed by noisy brakes.  One-third (33%) of owners who do not experience any problem with their new vehicle indicate they recommend the model to family and friends, while only 20 percent of owners who experience two or more problems say they will recommend their vehicle. A similar trend holds true for recommendations of the brand.  More than two-thirds (68%) of owners indicate this is their first new vehicle.

“Given that the vast majority of owners in Indonesia are first-time new-vehicle buyers, word of mouth recommendations from existing owners are an important influence during the purchase process,” said Nair. “Brands that are able to produce high-quality vehicles that exceed their customers’ expectations can strongly benefit from positive recommendations from satisfied owners.”

2013 Indonesia IQS Ranking Highlights Among the 59 models examined in the study, two models each from Honda (Brio and CR-V) and Toyota (Avanza and Kijang Innova) rank highest in their respective segments.

(Page 1 of 2) The Mitsubishi Outlander Sport and Suzuki Swift also rank highest in their respective segments.

The 2013 Indonesia Initial Quality Study (IQS) is based on evaluations from 3,293 owners who purchased their new vehicle between October 2012 and August 2013. The study covers 13 different makes that include 59 different passenger car and utility vehicle models. The study was fielded between April and November 2013.

About J.D. Power Asia Pacific J.D. Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide performance analytics services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at JDPower.com. Media e-mail contact: [email protected].

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Media Relations Contacts XingTi Liu; J.D. Power Asia Pacific; 08-Shenton Way, #44-02/03/04; Singapore, 068811; Phone +65 6 733 8980; [email protected] Office Locations John Tews; Director, Media Relations; J.D. Power; Troy, Michigan 48083 USA; +001 248 680 6218; [email protected]

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J.D. Power Asia Pacific 2013 Indonesia Initial Quality StudySM (IQS)

Top Three Models per Segment in Initial Quality Lower score reflects better quality performance Problems per 100 Vehicles (PP100) 0 50 100 Honda Brio 63 Valco 69 Compact Car Average 69 Kia Picanto 73 Mitsubishi Mirage 73 Premium Compact Car Suzuki Swift 61 Honda Jazz 63 67 Premium Compact Average 73 Entry SUV Mitsubishi Outlander Sport 74 Entry SUV Average 80 Terios 84 Toyota Rush 84 SUV Honda CR-V 68 Mitsubishi Pajero Sport 69 SUV Average 69 74 Entry MPV 72 Daihatsu Xenia 73 Chevrolet Spin 75 Entry MPV Average 75 MPV Toyota Kijang Innova 69 MPV Average 69 Honda Freed 72 Nissan Grand Livina 72

Note: Only the top three models per segment are shown above. Official rankings are published only for segments with at least three models with sufficient sample and at least one with an IQS score better than segment average. No official rankings are published for premium midsize, luxury and van segments

Source: J.D. Power Asia Pacific 2013 Indonesia Initial Quality StudySM (IQS)

Charts and graphs extracted from this press release must be accompanied by a statement identifying J.D. Power Asia Pacific as the publisher and the J.D. Power Asia Pacific 2013 Indonesia Initial Quality StudySM (IQS) as the source. Rankings are based on numerical scores and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power Asia Pacific study results without the express prior written consent of J.D. Power Asia Pacific.