Deloitte’s 2024 Global Automotive Consumer Study (GACS) India reveals a significant shift in consumer preferences in the Indian automotive sector. Conducted from October 5-12, 2023, the study surveyed 1,000 consumers across India and highlighted a growing inclination towards more sustainable vehicle technologies.
According to the study, almost 50% of Indian consumers intend to transition away from Internal Combustion Engine (ICE) vehicles. Instead, 24% are leaning towards Hybrid Electric Vehicles (HEVs) for their next purchase. This shift presents a near-term challenge for ICE technology but also opens opportunities for hybrid and electric vehicles.
Affordability and Preferences
Affordability remains a critical factor in vehicle purchasing decisions. The study found that 80% of consumers prefer vehicles priced between INR 5–25 lakh. Within this price range, preferences for ICE and electric vehicles (EVs) are nearly equal, with 59% opting for ICE and 58% for EVs. For vehicles priced under INR 10 lakh, the preference is 23% for ICE and 22% for EVs, respectively.
Environmental Concerns and Charging Infrastructure
Environmental consciousness influences 68% of respondents, while 63% are motivated by reduced fuel expenses. Charging infrastructure is also crucial, with 66% of consumers intending to charge their vehicles at home and 22% at public charging stations. Fast charging and simple payment methods, like traditional credit/debit cards, are preferred for convenience.
Battery Management and Sustainability
Consumers expect responsible battery management from dedicated recycling companies, EV battery manufacturers, and vehicle dealers. Despite challenges like charging time, infrastructure availability, and battery safety, there is a strong consumer preference for hybrid technology for their next vehicle.
Consumer Insights and Industry Trends
It has been emphasized that the economic boom and changing consumer preferences towards new cars over used ones. This trend presents OEMs with an opportunity to enhance customer retention through transparency and innovation. Despite the positive trend in EV adoption, infrastructure development remains crucial for sustainability.
Brand Loyalty and New Technologies
The study highlights the maturity of Indian consumers in brand adoption. They are now more tech-savvy and environmentally conscious rather than solely cost-conscious. Key reasons for switching brands include access to new technology, a desire for something different, and upgrading to a premium brand.
Emerging Trends
In-house Insurance Products: About 83% of consumers are interested in purchasing insurance directly from the manufacturer for convenience and cost savings.
Connected Vehicles: Safety is a priority for Indian consumers, with 71% willing to pay extra for connectivity features. Additionally, 88% want updates for road safety and collision prevention, and another 88% seek maintenance updates and vehicle health alerts.
Preference for New Cars: Despite interest in both new and used cars, 77% of consumers prefer buying a new car next. Key reasons include technological features (64%) and a desire for something new (50%).
OEM Commitment to Sustainability: Nearly all consumers (98%) expect vehicle brands to commit to sustainable practices, such as using environmentally friendly materials and reducing carbon footprints.
Vehicle Subscriptions: Younger consumers, particularly those aged 18–34, are driving interest in vehicle subscriptions. Approximately 60% prefer subscription services for cost control, convenience, and flexibility, though concerns about vehicle availability, higher fees, and total ownership costs remain.
The study highlights a moment in the Indian automotive sector, with consumers increasingly prioritizing sustainability, technology, and convenience in their vehicle choices.
