Ipsos Quality Awards Product Quality IPSOS SOUTH AFRICA

CONTENT 2 © 2017 Ipsos. 01 BACKGROUND 02 HEADLINE RESULTS 03 IPSOS PRODUCT QUALITY

BACKGROUND Ipsos and the Automotive Industry CENTRE FOR PROACTIVE MARKETING 1991 Ipsos (under various

BACKGROUND SAR: Measuring the Ownership Experience Customer purchases a new vehicle from dealership 1

ABOUT THE RESEARCH Process New vehicle purchase Ipsos contacts customer 1 Customer details captured

BACKGROUND What is it used for? MARKETING & ADVERTISING 1 ASSEMBLY FEEDBACK TO OVERSEAS

BACKGROUND VQS Development Customer perception of vehicle quality is crucial to competing successfully in

BACKGROUND VQS Representation VQS COVERAGE 72 REPRESENTED 28 NOT REPRESENTED • Ipsos conducted interviews

MARKET INDICATORS Volumes vs. Interest Rate 261235 276569 12, 0 145925 152085 152541 151046

HEADLINE RESULTS Vehicle Quality Over Time Industry Average 180 160 154 140 PP 100

HEADLINE RESULTS Local vs Import Industry Average 100 86 90 80 PP 100 70

HEADLINE RESULTS Local vs Import: Passenger Cars Defect vs Design 100 90 80 PP

HEADLINE RESULTS Local vs Import: Light Commercial Vehicles Defect vs Design 100 90 80

HEADLINE RESULTS Passenger Car Segments Defect vs Design 100 90 80 31 PP 100

HEADLINE RESULTS Recreational Vehicle Segments Defect vs Design 100 90 80 PP 100 70

HEADLINE RESULTS Light Commercial Vehicle Segments Defect vs Design 120 100 37 PP 100

MOST COMMON PROBLEM AREAS PER SEGMENT Segment Defect Design Total Most Common 2 nd

IPSOS PRODUCT QUALITY AWARDS 2017 20 © 2017 Ipsos.

ABOUT THE AWARDS Awards Structure 2016 Recreational Vehicle Awards Entry Small Hatch Segment Small

AWARDS NAVIGATION Page 22 23 Page 32 Page 38 PC RV LCV PC Segments

Ipsos Quality Awards 2017 PC SEGMENTS 23 © 2017 Ipsos.

SEGMENT AWARDS Passenger Car ENTRY LEVEL Nissan Micra (36) SMALL HATCH VW Polo (52)

SEGMENT AWARDS Passenger Car SMALL SEDAN MEDIUM SEDAN TOP SEDAN VW Polo (66) Toyota

SEGMENT AWARDS Passenger Car TOP EXECUTIVE None SPORTS COUPÉ Ford Mustang (72) MULTI PURPOSE

Ipsos Quality Awards 2017 PC CATEGORIES 27 © 2017 Ipsos.

CATEGORY AWARDS Passenger Car BEST LOCAL PLANT MANUFACTURING PASSENGER CARS Volkswagen Group South Africa:

Ipsos Quality Awards 2017 PC FULL RANKINGS 30 © 2017 Ipsos.

PASSENGER CAR FULL RANKINGS Audi A 3 (Sportback) 27 Opel Astra 66 Nissan Micra

Ipsos Quality Awards 2017 RV SEGMENTS 32 © 2017 Ipsos.

SEGMENT AWARDS Recreational Vehicle OVERALL SMALL RECREATIONAL VEHICLE Audi Q 5 (33) VOLUME SMALL

Ipsos Quality Awards 2017 RV CATEGORIES 34 © 2017 Ipsos.

CATEGORY AWARDS Recreational Vehicle BEST NEW RECREATIONAL VEHICLE Renault Captur (85) Opel Mokka (90)

Ipsos Quality Awards 2017 RV FULL RANKINGS 36 © 2017 Ipsos.

RECREATIONAL VEHICLE FULL RANKINGS Audi Q 5 Toyota Prado Toyota RAV 4 Audi Q

Ipsos Quality Awards 2016 LCV SEGMENTS 38 © 2017 Ipsos.

SEGMENT AWARDS Light Commercial Vehicle ¾ TON Nissan NP 200 (84) Chevrolet Utility (136)

SEGMENT AWARDS Light Commercial Vehicle DIESEL SINGLE CAB Toyota Hilux (69) Isuzu KB (77)

Ipsos Quality Awards 2016 LCV CATEGORIES 41 © 2017 Ipsos.

CATEGORY AWARDS Light Commercial Vehicle BEST NEW LIGHT COMMERCIAL VEHICLE None BEST LIGHT COMMERCIAL

CATEGORY AWARDS Light Commercial Vehicle BEST LOCAL PLANT MANUFACTURING LIGHT COMMERCIAL VEHICLES Toyota South

Ipsos Quality Awards 2017 LCV FULL RANKINGS 45 © 2017 Ipsos.

LIGHT COMMERCIAL VEHICLE FULL RANKINGS Toyota Hilux (Ptl SC) 43 Nissan Navara (Dsl DC)

CONTACTS Patrick Busschau Business Unit Director Patrick. Busschau@ipsos. com +27 11 709 7925 47

ABOUT IPSOS GAME CHANGERS Ipsos ranks third in the global research industry. With a

WE COVER THE WORLD Ipsos Offices Ipsos Partners Not Active 50 © 2017 Ipsos.

FAQs 01 WHO DO WE SPEAK TO? New vehicle owners who have driven their

ABOUT THE RESEARCH Quality Gates GATE 1 Gate 1: Format – Electronic data source

ABOUT THE RESEARCH Respondent Selection Random selection of respondents via an automated algorithm built

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Ipsos Quality Awards Product Quality IPSOS SOUTH AFRICA October, 2017 © 2017 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may not be disclosed or reproduced without the prior written consent of Ipsos. 1 1 © 2017 Ipsos.

BACKGROUND Ipsos and the Automotive Industry CENTRE FOR PROACTIVE MARKETING 1991 Ipsos (under various nomenclatures) has been commissioned since 1991 to conduct market research on behalf of the South African Automotive industry PROACTIVE INSIGHT 2001 The research follows a syndicated format with various Original Equipment Manufacturers contributing ideas and funding SYNOVATE 2004 • Any OEM can participate if they: • Supply customer names for interviewing • Agree to the rules of syndication IPSOS 2011 IPSOS 2017 • Participate in meetings / decisions regarding syndicate business in a transparent and open manner The Vehicle Quality Survey (VQS) component of the research focuses on providing benchmarking measurements of customers perceptions of vehicle quality at approximately 3 months in service. 4 © 2017 Ipsos.

BACKGROUND SAR: Measuring the Ownership Experience Customer purchases a new vehicle from dealership 1 CCE Sales interview 10 – 35 days after event Customer drives vehicle for 3 months Customer has vehicle serviced at dealership 2 3 VQS interview ~90 days in service OWNERSHIP EXPERIENCE 5 © 2017 Ipsos. CCE Service interview 10 – 35 days after event

ABOUT THE RESEARCH Process New vehicle purchase Ipsos contacts customer 1 Customer details captured 6 © 2017 Ipsos. 2 3 Customer data submitted to Ipsos Reporting issued to manufacturer 4 5 Customer provides feedback Feedback extracted analysed 6 7 8 Improvement strategies identified

BACKGROUND VQS Development Customer perception of vehicle quality is crucial to competing successfully in the automotive environment. Favourable perceptions help to protect and grow market share by improving retention and advocacy. Therefore, there has always been an interest in measuring perceived vehicle quality… 01 02 The early 1990’s goal of ‘zero-defects’ on vehicles had been largely achieved by the early 2010’s The number of reported defects for vehicles at approximately three months plateaued at around 40 PP 100 for vehicles purchased in 2011, 2012, 2014 and 2015 03 This suggested that the absence of ‘defects’ is no longer the main differentiating factor of vehicle quality 04 05 The customer’s own perceptions/opinions and ‘taste’ around their vehicle plays an increasingly larger role in how vehicle quality is perceived VQS is an expansion of the PP 100 measurement to provide insight not only in terms of ‘defects’ experienced by customers, but also the effectiveness of vehicles in meeting the ‘taste’ requirements of customers Measuring perceived vehicle quality needs to be done in a holistic manner in order to keep pace with the evolving requirements and desires of customers 8 © 2017 Ipsos.

BACKGROUND VQS Representation VQS COVERAGE 72 REPRESENTED 28 NOT REPRESENTED • Ipsos conducted interviews about vehicle quality with more than 7 000 customers from 17 participating brands in 2016 • These participating brands represent more than 72% of new vehicles sold in South Africa via the Dealership channel in 2016 9 © 2017 Ipsos. PARTICIPATING VQS BRANDS

MARKET INDICATORS Volumes vs. Interest Rate 261235 276569 12, 0 145925 152085 152541 151046 140425 132598 186060 50 000 10, 0 2006 2007 2008 2009 Passenger Vehicles © 2017 Ipsos. 4, 0 2, 0 0 11 6, 0 2011 2012 Light Commercial Vehicles 2013 2014 2015 Prime Interest Rate 2016 Interest Rate % 330719 343821 365644 361202 14, 0 8, 0 117028 100 000 102501 150 000 184067 200 000 149495 256186 250 000 174789 Units sold 300 000 316011 346591 350 000 16, 0 377337 400 000

HEADLINE RESULTS Vehicle Quality Over Time Industry Average 180 160 154 140 PP 100 120 134 117 100 103 80 81 93 73 81 60 64 56 40 20 41 39 39 37 2011 2012 2013 2014 0 2004 2005 2006 2007 2008 2009 PP 100 (Defect Only) 12 © 2017 Ipsos. 2010 VQS (Defect + Design) 2015 2016

HEADLINE RESULTS Passenger Car Segments Defect vs Design 100 90 80 31 PP 100 70 60 50 27 25 40 31 21 21 16 20 14 30 20 43 38 35 40 37 34 Small Hatch Top Hatch Small Sedan Medium Top Sedan 10 58 42 25 0 Entry n = 4298 16 © 2017 Ipsos. Defects Design Top Executive Sports Coupe MPV

HEADLINE RESULTS Light Commercial Vehicle Segments Defect vs Design 120 100 37 PP 100 80 33 60 40 28 73 20 27 20 37 28 45 53 0 Three Quarter ton n = 1580 18 © 2017 Ipsos. Petrol Single Cab Petrol Double Cab Defects Design Diesel Single Cab Diesel Double Cab

MOST COMMON PROBLEM AREAS PER SEGMENT Segment Defect Design Total Most Common 2 nd Most Common 3 rd Most Common Entry 43 27 70 Fuel consumption Low performance Unspecified noise Small Hatch 38 25 63 Fuel consumption Low performance Engine noise Top Hatch 35 21 56 Fuel consumption Low performance Unspecified noise Small Sedan 40 31 71 Fuel consumption Road-holding Boot closing Medium Sedan 37 16 53 Fuel consumption Unspecified noise Wind noise Top Sedan 34 20 54 Fuel consumption Low performance Pulling to the side Top Executive 25 14 39 Fuel consumption Unspecified noise Information system issue Sports Coupé 42 21 63 Parking Assist issue Engine malfunction Dashboard noises Multipurpose Vehicle 58 31 89 Road-holding Fuel consumption Low performance Small Recreational Vehicle 40 28 68 Fuel consumption Low performance Dashboard noises Large Recreational Vehicle 32 16 48 Difficult Sat. Nav Fuel consumption Tyre-sensor issue Three-Quarter Ton 73 37 110 Fuel consumption Unspecified noise Stiff transmission Petrol Single Cab 28 20 48 Fuel consumption Unspecified noise Braking noises Diesel Single Cab 45 27 72 Fuel consumption Unspecified noise Stiff transmission Petrol Double Cab 37 28 65 Fuel consumption Difficult Sat. Nav Wheel noise Diesel Double Cab 53 33 86 Fuel consumption Audio malfunction Low performance 19 © 2017 Ipsos.

ABOUT THE AWARDS Awards Structure 2016 Recreational Vehicle Awards Entry Small Hatch Segment Small Sedan Best Overall Recreational Vehicle Three Quarter Ton Pick-Up Best Volume Small Recreational Vehicle Petrol One Ton Single Cab Large Recreational Vehicle Category Best New Recreational Vehicle Top Sedan Best New Light Commercial Vehicle Top Executive Best Overall Light Commercial Vehicle Brand Sports Coupé Best One Ton Single Cab Light Commercial Vehicle Brand Best Overall Passenger Car Brand Category Diesel One Ton Single Cab Diesel One Ton Double Cab Multipurpose Vehicle 21 Petrol One Ton Double Cab Medium Sedan Category Segment Top Hatch 2016 Light Commercial Vehicle Awards Segment 2016 Passenger Car Awards Best New Passenger Car Best Local Plant Manufacturing Light Commercial Vehicles Best Volume Passenger Car Brand Best Local Plant Manufacturing Passenger Cars © 2017 Ipsos. Best One Ton Double Cab Light Commercial Vehicle Brand All results based on transactions between Jan and Dec 2015

SEGMENT AWARDS Passenger Car ENTRY LEVEL Nissan Micra (36) SMALL HATCH VW Polo (52) Toyota Yaris (55) TOP HATCH Audi A 3 Sportback (27) Opel Corsa (63) VW Up (50) Nissan Juke (69) Audi A 1 Sportback (44) Ford Fiesta (69) 24 © 2017 Ipsos. VW Polo Vivo Hatch (64) VW Cross. Polo (80) Toyota Etios (67) Renault Clio (85) Volvo V 40 (51) VW Golf (52) Ford Focus (53)

SEGMENT AWARDS Passenger Car SMALL SEDAN MEDIUM SEDAN TOP SEDAN VW Polo (66) Toyota Corolla Quest (72) Audi A 5 Sportback (50) Audi A 3 (36) Nissan Almera (72) Audi A 4 (55) Chevrolet Cruze (50) Toyota Corolla (52) VW Jetta (56) 25 © 2017 Ipsos.

CATEGORY AWARDS Passenger Car BEST OVERALL PASSENGER CAR BRAND Audi (47) BEST NEW PASSENGER CAR Ford Mustang (72) BEST VOLUME PASSENGER CAR BRAND Volkswagen (59) Nissan (63) Toyota (66) Volvo (53) Ford B-Max (101) Ford (69) Honda (70) Volkswagen (59) Nissan (63) 28 © 2017 Ipsos. Opel (73)

CATEGORY AWARDS Passenger Car BEST LOCAL PLANT MANUFACTURING PASSENGER CARS Volkswagen Group South Africa: Uitenhage (60) Toyota South Africa Motors: Prospecton (60) General Motors South Africa: Struandale (72) 29 © 2017 Ipsos.

PASSENGER CAR FULL RANKINGS Audi A 3 (Sportback) 27 Opel Astra 66 Nissan Micra 36 VW Polo (Sedan) 66 Audi A 3 (Sedan) 36 Toyota Etios 67 Audi A 1 (Sportback) 44 Nissan Juke 69 69 Audi A 5 (Sportback) 50 Ford Fiesta VW up! 50 Chevrolet Spark 1. 2 72 Chevrolet Cruze 50 Toyota Corolla Quest 72 Volvo V 40 51 Nissan Almera 72 VW Polo (Hatch) 52 Ford Mustang 72 Volkswagen Golf 7 52 Ford Figo 74 Toyota Corolla 52 Toyota Aygo 74 Ford Focus 53 Volkswagen Cross. Polo 80 Audi A 4 55 Toyota Avanza 85 Toyota Yaris 55 Volkswagen Polo Vivo (Sedan) 85 VW Jetta 56 Renault Clio 85 Nissan Qashqai 61 Renault Sandero Toyota Auris 61 Volkswagen Caravelle & Kombi 92 95 Opel Corsa 63 Ford B-Max 101 VW Polo Vivo (Hatch) 64 Datsun Go 102 31 © 2017 Ipsos.

SEGMENT AWARDS Recreational Vehicle OVERALL SMALL RECREATIONAL VEHICLE Audi Q 5 (33) VOLUME SMALL RECREATIONAL VEHICLE Toyota RAV 4 (42) LARGE RECREATIONAL VEHICLE Toyota Prado (38) Nissan X-Trail (49) Toyota RAV 4 (42) Chevrolet Captiva (50) VW Tiguan (53) Audi Q 3 (48) Nissan X-Trail (49) Chevrolet Captiva (50) 33 © 2017 Ipsos. Ford Everest (69) Ford Kuga (71) Audi Q 7 (63)

RECREATIONAL VEHICLE FULL RANKINGS Audi Q 5 Toyota Prado Toyota RAV 4 Audi Q 3 Nissan X-Trail Chevrolet Captiva VW Tiguan Audi Q 7 Ford Everest Ford Kuga Toyota Fortuner Ford Eco. Sport Renault Captur Opel Mokka Chevrolet Trailblazer Renault Duster 37 © 2017 Ipsos. 33 38 42 48 49 50 53 63 69 71 78 83 85 90 91 102

CATEGORY AWARDS Light Commercial Vehicle BEST ONE TON SINGLE CAB LIGHT COMMERCIAL VEHICLE BRAND BEST ONE TON DOUBLE CAB LIGHT COMMERCIAL VEHICLE BRAND Toyota (64) Volkswagen (63) Nissan (66) Nissan (70) Isuzu (77) Ford (77) Toyota (74) Isuzu (93) Ford (98) 43 © 2017 Ipsos.

CATEGORY AWARDS Light Commercial Vehicle BEST LOCAL PLANT MANUFACTURING LIGHT COMMERCIAL VEHICLES Toyota South Africa Motors: Prospecton (68) Nissan South Africa: Rosslyn (78) Ford Motor Company of Southern Africa: Silverton (91) 44 © 2017 Ipsos.

LIGHT COMMERCIAL VEHICLE FULL RANKINGS Toyota Hilux (Ptl SC) 43 Nissan Navara (Dsl DC) 43 Nissan Hardbody (Ptl DC) Volkswagen Amarok (Dsl DC) Toyota Hilux (Dsl SC) Toyota Hilux (Dsl DC) 63 69 72 Isuzu KB (Dsl SC) 77 Ford Ranger (Dsl SC) 78 Nissan NP 200 Isuzu KB (Dsl DC) Ford Ranger (Dsl DC) Chevrolet Utility 46 48 © 2017 Ipsos. 84 93 98 136

ABOUT IPSOS GAME CHANGERS Ipsos ranks third in the global research industry. With a strong presence in 87 countries, Ipsos employs more than 16, 000 people and has the ability to conduct research programs in more than 100 countries. Founded in France in 1975, Ipsos is controlled and managed by research professionals. They have built a solid Group around a multi-specialist positioning – Media and advertising research; Marketing research; Client and employee relationship management; Opinion & social research; Mobile, Online, Offline data collection and delivery. At Ipsos we are passionately curious about people, markets, brands and society. We deliver information and analysis that makes our complex world easier and faster to navigate and inspires our clients to make smarter decisions. Ipsos is listed on Eurolist - NYSE-Euronext. The company is part of the SBF 120 and the Mid-60 index and is eligible for the Deferred Settlement Service (SRD). ISIN code FR 0000073298, Reuters ISOS. PA, Bloomberg IPS: FP www. ipsos. com 49 © 2017 Ipsos. We believe that our work is important. Security, simplicity, speed and substance applies to everything we do. Through specialisation, we offer our clients a unique depth of knowledge and expertise. Learning from different experiences gives us perspective and inspires us to boldly call things into question, to be creative. By nurturing a culture of collaboration and curiosity, we attract the highest calibre of people who have the ability and desire to influence and shape the future. “GAME CHANGERS” - our tagline - summarises our ambition.

FAQs 01 WHO DO WE SPEAK TO? New vehicle owners who have driven their vehicle for 90 days 02 WHERE DO WE GET THE NAMES FROM? Supplied by OEMs, quality checked and submitted to the CATI team 03 HOW DO WE INTERVIEW THEM? Telephonically using CATI 04 52 © 2017 Ipsos. WHAT QUALITY ASSURANCE IS THERE? Four quality gates are in place ISO 20252 and ISO 9001 : 2000 compliant

ABOUT THE RESEARCH Quality Gates GATE 1 Gate 1: Format – Electronic data source (Warranty System, OEM Sales database) GATE 2 Gate 2: Pre-Quantity – Volume of records received, compared to NAAMSA reported dealer sales may not vary by more than 10% GATE 3 Gate 3: Pre-Quality – Record must contain each of the following: • Individual’s surname • a valid contact number (mobile or landline) • a valid OEM model description GATE 4 Gate 4: Post Quality – Deemed to be errors in data: • No such person • Do not own vehicle • Wrong number MANUFACTURER IPSOS FIELDWORK 53 © 2017 Ipsos.

ABOUT THE RESEARCH Respondent Selection Random selection of respondents via an automated algorithm built into the CATI system All interviews are recorded Interviews only completed if the following is confirmed at the start of the interview: 54 1 2 3 4 5 Customer identity Not employed by a motor manufacturer or any of their dealers Vehicle purchased NEW Never been involved in an accident Vehicle used in personal capacity © 2017 Ipsos.