2024-07-05 20:42:24
Chinese brands that make their sales data public marketed 46,226 vehicles in the country between January and May 2024, while in the same period of the previous year the figure was 49.01 units, according to the latest data from Inegi. This is due, among other things, to the fact that Pay attention to sales and after-sales service challenges.
“The competition is present and they have taken a percentage of the market. However, their share is decreasing as the big brands have restored our inventory. The performance of the Chinese brands has decreased, it is not the same no longer than a few years ago or a year and a half,” said Alfonso Chiquini, Marketing Director of Volkswagen in Mexico.
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Service and spare parts, Achilles heel
According to the Mexico 2024 Sales Satisfaction Index (SSI) Study conducted by consulting firm JD Power, Chinese assembly companies received 843 points, the lowest score of the entire study. In contrast, European and American brands followed with 874 and 878 points, respectively. This study assesses customer satisfaction during the new vehicle purchase process.
There is no better attitude in the after-sales service. Some owners of Chinese brand cars in Mexico have a problem: long waiting times for repairs. This inconvenience, which sometimes lasts up to four months, is caused by a series of bureaucratic and logistical obstacles that complicate the importation of the spare parts necessary for major repairs, as well as the lack of agreements between insurers and dealer groups.
The problem of spare parts and after-sales care is not small. “It’s frustrating to wait so long for a repair. When I bought my car, I didn’t think there would be so many problems with the after-sales service,” said Juan Carlos Ramírez, owner of the Chirey model.
These types of complaints are not isolated and have affected consumer perceptions of Chinese brands. Despite its initial appeal and competitive prices, the after-sales experience is a key factor in customer loyalty and long-term reputation.
Chinese brands are taking steps to improve these aspects. Some startups are investing in creating parts distribution centers in Mexico to reduce waiting times. In addition, they are working on establishing better relationships with insurers to streamline repair processes.
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“We know we have areas of improvement and we are working on them. We want our customers to have the best experience, not only at the time of purchase, but also afterwards,” said Chery International’s Charlie Zhang in an interview last year.
Brands that have recently arrived in Mexico have also recognized the importance of guaranteeing the availability of spare parts. Pedro Albarrán, vice president and general director of GWM, said that the spare parts were the first to arrive in Mexico. “Before introducing our first model, we already had a large spare parts warehouse with a catalog of more than 300,000 spare parts for both corrective and preventive maintenance,” he shared in an interview before the brand’s launch.
GAC adopted a similar strategy. Availability of spare parts was fundamental in GAC’s launch in Mexico. Osvaldo Ramírez, manager of spare parts and accessories at GAC Mexico, explained that at the beginning of the year, based on the experience of other brands, they established an initial stock based on sales projections and the estimated percentages of vehicles involved in collisions, which usually face them. longer times.
(Yvette Rodriguez)
An opportunity
Western vehicle manufacturers saw after-sales service as an opportunity to regain ground lost to Chinese brands in recent years.
“The only way to progress or even survive in an increasingly competitive industry is through after-sales service. This includes warranties, vehicle parts and repairs, among others. The Mexican consumer is very demanding and, although he may be ‘around’ when buying something new, he is very rational and thinks in the medium and long term. For this reason, we are focusing on aftersales,” said Miguel Barbeyto, president of Mazda in Mexico.
The automotive market in Mexico continues to be attractive and dynamic. Chinese brands have proven to be aggressive competitors, able to quickly adapt and innovate in a highly competitive market. However, to ensure sustainability and long-term growth, they must face the challenges of after-sales service and customer satisfaction.
“Each brand must develop its own strategies to ensure its recognition and avoid the stigma associated with Chinese cars. Just because one or two brands do not have spare parts does not mean that this happens with all of them,” said Isidoro Massri, general director of JAC in Mexico.
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