Survey, Indian car market, hybrid cars, electric vehicles, premium cars, festive season, car sales, SUV,

Over 80 per cent Indian customers are now opting for premium car models. This was revealed in a survey conducted by Grant Thornton Bharat, which also showed a significant increase in the preference for hybrid vehicles.

The survey found that 40 per cent of respondents now favour hybrid cars, compared to just 17 per cent who prefer electric vehicles (EVs). Meanwhile, 34 per cent of consumers still lean toward petrol vehicles, highlighting the market’s transitional phase.

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Festive season to powers sales growth

Saket Mehra, Partner and Auto and EV Industry Leader at Grant Thornton Bharat, emphasized the importance of the festive season, which typically accounts for 30-40 per cent of annual car sales in India. He, however, noted that this year’s growth has been tempered by high inventory levels, weather disruptions, and regional elections.

“Despite these challenges, early October sales saw a 30–35% increase in registrations compared to September, indicating encouraging signs for the market,” Mehra said.

He also pointed out that consumers are expecting substantial discounts during the festive season, providing the automotive industry with a unique opportunity to boost demand.

The demand for hybrid cars

The growing demand for hybrid vehicles is seen as a bridge between traditional petrol engines and electric vehicles, helping consumers familiarize themselves with alternative technologies. This trend is expected to accelerate future EV adoption, according to the survey.

“Automakers need to focus on both hybrid and electric vehicle solutions to meet the evolving expectations of consumers and prepare for a more sustainable automotive future,” the report noted.

Demand for SUVs and UVs remains strong

Despite a subdued first half of FY25, with overall domestic sales rising by just 0.5 per cent, the sustained demand for SUVs and utility vehicles (UVs) reflects the increasing consumer preference for versatile, larger vehicles.

“Automakers have an opportunity to meet rising consumer demand through substantial festive discounts, with nearly 90 per cent of respondents expecting such offers,” Mehra added.

The survey also highlighted the growing influence of digital platforms in the car-buying process. About 74 per cent of consumers now use social media and car websites for research, up from 56 per cent two years ago. However, final purchases remain largely offline.

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