NEW DELHI New Delhi: More than eight in 10 Indian consumers now prefer buying premium models amid a strong preference for hybrid vehicles over electric vehicles (EVs), a survey on Monday revealed.Grant Thornton India According to the survey, 40 percent of respondents now prefer hybrid vehicles, while only 17 percent prefer EVs. About 34 per cent still lean towards petrol vehicles, reflecting the volatile nature of the market.
According to Saket Mehra, partner and auto and EV industry leader, Grant Thornton India, the festival season, which typically accounts for 30-40 per cent of annual sales, is crucial for the Indian automotive industry. “However, high inventory Levels, weather disturbances and regional elections have slowed growth this year. Despite these challenges, sales in early October – showing a 30-35 per cent increase in registrations compared to September – give encouraging signs.” Consumers are expected to enjoy substantial discounts this festive season, so the industry has a unique opportunity to drive demand.
Mehra said that in the long term, economic growth and rising disposable incomes will further strengthen the outlook for India's passenger vehicle market. With the increasing trend of hybrid vehicles, they are expected to act as a bridge between alternative technologies and will build consumer familiarity with and ultimately accelerate EV adoption in the future. The report notes that this trend underlines the need for automakers to focus on both hybrid and electric solutions to meet consumer expectations. and prepare for a sustainable automotive future.
Despite a sluggish first half of FY2025, with overall domestic sales growing by only 0.5 per cent, the sustained demand for SUVs and UVs reflects growing consumer preference for versatile vehicles. “Automakers have enough festive season,” Mehra said. There is an opportunity to meet growing consumer demand through discounts, with nearly 90 percent of respondents expecting such offers.”
Additionally, digital platforms are playing a key role in the car buying journey, with 74 percent of consumers using social media and car websites for research – up from 56 percent two years ago – although the final purchase remains largely offline. . The report said that in the long term, economic growth and rising disposable incomes will drive market expansion, leading to a strong automotive future for India.
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