A significant surge in vehicle purchase intent is anticipated this festive season in India, according to a new survey. The 'Festive drive: What consumers want in their next ride' report from Grant Thornton Bharat reveals that 41 per cent of respondents are planning to buy a vehicle in the next three to four months, driven by recent tax reforms and festive optimism.
The survey, which gathered responses from more than 2,800 consumers, highlights the impact of the Goods and Services Tax (GST) 2.0 reforms on consumer sentiment. A notable 72 per cent of respondents who were planning a purchase had deferred their decision in anticipation of this tax rationalisation, signalling its significant role in improving affordability.
Hybrids Overtake Petrol and EVs
The study reveals a clear shift in fuel preferences among Indian car buyers. Hybrid vehicles have emerged as the most preferred option, chosen by 38 per cent of respondents. This places hybrids ahead of petrol vehicles, which were preferred by 30 per cent, and electric vehicles (EVs), selected by 21 per cent of those surveyed. This indicates a consumer move towards transitional, fuel-efficient technologies.
Saket Mehra, Partner and Automotive Industry Leader at Grant Thornton Bharat, commented on the broader trends. “This festive season is not just a sales window; it signals deeper shifts in consumer behaviour. The growing preference for hybrids, rising safety consciousness, and willingness to pay for premium features reflect a more informed and aspirational buyer,” Mehra said.
He added, “With GST reforms unlocking affordability and digital channels reshaping discovery, OEMs have a unique opportunity to reimagine their value proposition for India’s next phase of mobility.”
SUV Dominance and Safety First
The preference for Sports Utility Vehicles (SUVs) continues to dominate the market. The survey found that 64 per cent of respondents prefer SUVs, a segment that now contributes 65 per cent to India's total passenger vehicle sales in the 2025 financial year, up from nearly 50 per cent just two years ago.
Safety has also become a paramount concern for buyers. The report shows that 34 per cent of respondents now prioritise safety over traditional factors like price and mileage. This reflects a maturing market influenced by stricter government regulations, increased crash test awareness, and the availability of more tech-enabled safety features.
Premiumisation and Digital Discovery
A trend towards premiumisation is also evident. More than 35 per cent of respondents expressed a willingness to pay more for high-end variants, with 65 per cent finding a 10 to 15 per cent price premium acceptable. These highlights rising consumer aspirations and demand for feature-rich vehicles.
The vehicle discovery process is increasingly digital. The survey found that 52 per cent of respondents use a blend of online and offline channels before making a purchase. Social media is the leading discovery platform, used by 35 per cent of respondents, followed by car-specific apps and websites, used by 23 per cent.
The reduction of GST on small cars from 28 per cent to 18 per cent is a key factor, potentially lowering acquisition costs by up to Rs 1,00,000. This is expected to particularly boost demand in Tier 2 and Tier 3 cities. The positive sentiment is already translating into sales, with a 34 per cent growth in passenger vehicle retail recorded during the recent Navratri festival period. |
