When looking for their next vehicle, Indian car buyers have clearly changed their criteria. Cost is no longer the main factor. Deloitte’s 2023 Global Automotive Consumer Study supports this. The typical consumer favors experience over price. According to the study, important factors now include a brand image, vehicle features, and product quality.
Safety is currently a top concern for Indian consumers. The study demonstrates that consumers are willing to provide manufacturers or a third party with data and/or vehicle/operational data in order to receive the necessary updates for a better and safer driving experience. Consumers preferred maintenance updates, vehicle health reporting/alerts, and updates to improve road safety and avert potential collisions by about 84 percent to 85 percent, respectively.
Cost vs. mileage has traditionally been the most crucial factor in Indian consumer decision-making because Indians are known for their frugal nature. However, the study reveals that consumers are now choosing to pay more for their next vehicle.
EVs gaining traction
Around 47% of people were interested in vehicles in the Rs 10–25 lakh price range. The percentage of buyers dropped to 28% for vehicles priced at less than Rs 10 lakh. Intentional buyers were willing to spend between Rs 10 and Rs 25 lakh on electric vehicles, with 20% willing to spend less than Rs 10 lakh.
Consumer interest in EVs is increasing as they seek to reduce their operating costs thanks to policies that support self-reliance and the fight against climate change. The top three justifications for buying an EV were “low fuel costs,” “better driving,” and “less maintenance.”
Speaking on the study, Rajeev Singh, Partner, and Automotive Sector leader, Deloitte Touche Tohmatsu India said “Our consumer study indicates the rising demand and expectation of the Indian consumer, who is not just cost-conscious anymore but is considering more than one pragmatic way of mobility experience. This allows them to balance operating costs, and experience through technology (37 percent) whilst making sustainable choices.”
