The market is already pricing in poor service — and Chinese importers will feel it in the second-hand market
The Chinese automotive market highlights that post-sale service quality is becoming a key driver of brand loyalty. As the Israeli market undergoes 'Sinization,' it faces similar challenges where poor service standards are beginning to impact brand reputation and long-term vehicle value.
Last week, the Chinese arm of the global consumer organization JD Power published the results of a customer experience survey for the Chinese automotive market. This survey focuses on electric and plug-in hybrid vehicles, covering aspects such as treatment during breakdowns, repair times, and the speed of accident damage resolution.
Why is this survey important? Because while almost anyone in China can fix "regular" gasoline cars, repairing electric or plug-in hybrids with advanced propulsion systems is a different story. The Chinese market is packed with manufacturers, products are incredibly similar, and price competition is fierce. In such a climate, marketing advantages go to those who excel at post-sale customer care, rather than those who simply squeeze more range out of a battery or offer a larger screen.
Transparency and Market Impact
Everything in the Chinese automotive market is exposed. Online groups on Weibo are filled with millions of opinions about service quality. A single Chinese TikToker can determine a car's fate if the service is poor, and manufacturers are well aware of this, often taking legal action against those who "smear" them.
JD Power, founded in 1968 in the USA, is one of the world's most influential independent consumer organizations. Car manufacturers treat their surveys with "holy dread," as the ability to schedule appointments and receive quality service determines brand loyalty. In a survey of 13,078 owners across 81 models, An Xia, director of JD Power China's automotive department, noted: "Service under warranty is declining in quality, and customers are turning to external garages. Agents are reducing investment in customer-focused services due to declining profitability, which harms loyalty."
The Israeli Context
While the JD Power survey focuses on China, the Israeli automotive market has been shifting its consumer preferences for months, increasingly resembling the Chinese model. Israelis are viewing cars less as traditional transport and more as electronic devices, though value retention remains a significant concern.
Israel lacks independent reliability surveys. The only indicators of quality are found in online owner groups and internal importer data. Despite importers' efforts to suppress complaints, Facebook groups are filled with reports of malfunctions: exploding radiators, bubbling steering wheels, dark screens, and failing turbochargers.
This is compounded by the fact that Israeli importers are often far from the "source of knowledge" regarding complex Chinese systems, and service staff often lack brand-specific expertise. Furthermore, due to price wars and a flood of fleet sales, pressure on importer garages is mounting, often at the expense of private customers.
It is time to "price" poor service. As the Israeli market continues its "Sinization," it is only a matter of time until service quality becomes a primary characteristic determining a car's value in the second-hand market.
