(August 7, 2011) SÃO PAULO — Among vehicle owners in Brazil, cost is a particularly dissatisfying element of vehicle ownership, especially among owners of the smallest vehicles — subcompact and compact cars — according to the J.D. Power do Brasil 2011 Brazil Vehicle Ownership Satisfaction Study (VOSS).

The inaugural study is based on actual vehicle owner evaluations of their vehicle and dealer across four measurements of satisfaction. In order of importance, they are cost of ownership (31%), including fuel consumption, insurance and maintenance/repair; vehicle appeal (28%), which includes performance, design, comfort and features; dealer service experience (23%); and vehicle quality and reliability (17%). Overall ownership satisfaction is reported as an index score based on a 1,000-point scale, with a higher score indicating higher satisfaction.

Overall satisfaction averages 743 in 2011, with vehicle owners indicating they are most satisfied with the quality and reliability of their vehicle (780, on average) and least satisfied with cost of ownership (698).

Ownership cost satisfaction among subcompact and compact model owners is the lowest of all the vehicle segments examined in the study, averaging 682 and 693, respectively. In comparison, average cost of ownership satisfaction ranges between 713 and 747 among larger vehicle segments.

Sizable proportions of subcompact and compact model owners indicate they pay more than they expected for vehicle service, with nearly 20 percent of subcompact owners and compact owners saying their service expenditures were “much higher” than expected. Dissatisfaction with the costs of service and insurance are particularly strong.

“Owners of subcompact and compact models are spending a much higher proportion of their income on all of the costs associated with their vehicle — including fuel, repair and maintenance—than do owners of larger vehicle models,” said Jon Sederstrom, director and country manager, J.D. Power do Brasil. “Collectively, owners of subcompact and compact models comprise 61 percent of the market in Brazil. For automakers, effectively managing expectations of these owners will be key to elevating satisfaction throughout the market.”

According to J.D. Power, the Brazil new-vehicle market is projected to continue to grow rapidly in the coming years. Sales are projected to reach approximately 3.53 million units in 2011, compared with sales of 2.72 million units in 2008 — representing an average annual growth rate of 9 percent during the past three years.

This rapid growth is attracting nameplates from Asia, which are investing aggressively in local manufacturing capacity and dealership networks to capitalize on Brazil’s market potential. As a result, the competitive landscape is changing and consumers are enjoying more choices than ever before.

“Vehicle owners in Brazil have an unprecedented array of choices and this new reality represents both an opportunity and a threat for established auto manufacturers,” said Sederstrom. “Paying attention to the needs of new-vehicle buyers and consistently meeting these expectations throughout the ownership period is a precondition for customer retention and for maximizing the likelihood that existing owners will enthusiastically recommend their vehicle and dealer to their family, friends and work colleagues.”