Over 8 in 10 Indians seek premium cars, preference for hybrid models jumps to 40 %, ET Auto

In the long term, economic growth and rising disposable incomes will further strengthen the outlook for India’s passenger vehicle market.More than eight in 10 Indian consumers now prefer buying premium models amid an increasing preference for hybrid vehicles over electric vehicles (EVs), a survey showed on Monday.

According to the survey by Grant Thornton Bharat, 40 % of respondents now prefer hybrid vehicles, compared to only 17 % favouring EVs. About 34 % still lean toward petrol vehicles, reflecting the transitional nature of the market.

According to Saket Mehra, Partner and Auto and EV Industry Leader, Grant Thornton Bharat, the festive season, which typically accounts for 30-40 % of annual sales, is critical for the Indian automotive industry.

“However, high inventory levels, weather disruptions, and regional elections have tempered growth this year. Despite these challenges, early October sales – showing a 30-35 % increase in registrations compared to September – offer encouraging signs,” Mehra noted.

With consumers also expecting substantial discounts this festive season, the industry has a unique opportunity to drive demand.

In the long term, economic growth and rising disposable incomes will further strengthen the outlook for India’s passenger vehicle market, said Mehra.

With hybrid vehicles gaining traction, they are expected to act as a bridge, building consumer familiarity with alternative technologies and ultimately accelerating future EV adoption.

This trend underscores the need for automakers to focus on both hybrid and electric solutions to meet evolving consumer expectations and prepare for a sustainable automotive future, the report mentioned.

Despite a muted first half of FY25, with overall domestic sales rising by just 0.5 % , the sustained demand for SUVs and UVs reflects the growing consumer preference for versatile vehicles.

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

Additionally, digital platforms are playing a critical role in the car-buying journey, with 74 % of consumers using social media and car websites for research – up from 56 % two years ago – although final purchases remain largely offline.

In the long term, economic growth and rising disposable incomes will bolster the market’s expansion, positioning India for a strong automotive future, the report mentioned.

To learn more about the electric vehicle ecosystem and meet the key industry leaders, click here.

• Published On Oct 28, 2024 at 01:30 PM IST

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