Grant Thornton Bharat’s latest survey indicates that hybrids are set to consolidate market share this festive season, bridging the gap between conventional petrol engines and the emerging electric vehicle segment.
Hybrids have emerged as the preferred choice for Indian car buyers this festive season, surpassing petrol and electric vehicles, according to Grant Thornton Bharat’s latest survey.
Hybrids take the lead in festive vehicle demand
The study, based on responses from over 2,800 consumers across cities and age groups and conducted over a month, found that 38 per cent of respondents favour hybrid vehicles, compared to 30 per cent for petrol and 21 per cent for EVs.
The findings reflect a growing preference for balanced performance, lower emissions, and fuel efficiency.
Overall, 41 per cent of respondents indicated plans to purchase a vehicle in the next three to four months, signalling a rebound in consumer sentiment after 72 per cent had deferred purchases in anticipation of GST 2.0 rationalisation.
The survey highlights the influence of policy reforms and simplified taxation on buying decisions, especially in Tier 2 and Tier 3 cities.
SUVs dominate market; safety gains importance
SUVs continue to dominate India’s passenger vehicle market, with 64 per cent of respondents preferring them and the segment accounting for 65 per cent of FY25 sales, up from roughly 50 per cent two years ago.
Safety has become a key purchase factor, with 34 per cent of respondents prioritising it over price and mileage, reflecting growing awareness of crash tests and tech-enabled safety features.
Premiumisation and digital influence reshape buying habits
Premiumisation is also rising, with more than 35 per cent of respondents willing to pay extra for high-end variants and 65 per cent open to a 10–15 per cent price premium for additional features.
Digital discovery is transforming purchase behaviour, as 52 per cent of buyers now rely on both online and offline channels.
Social media (35 per cent) and car apps (23 per cent) are major influences in the decision-making process.
Festive sales accelerate amid GST reforms and affordability
The survey points to a 34 per cent growth in passenger vehicle retail during Navratri 2025, driven by GST-led affordability, new launches, and upgrade buying.
Stable interest rates, rising disposable incomes, and government reforms--including EV incentives and tax simplifications--are expected to sustain demand across urban and semi-urban markets.
Consumer behaviour reflects long-term transformation
Saket Mehra, partner and automotive industry leader at Grant Thornton Bharat, said the festive season reflects “deeper shifts in consumer behaviour” as GST reforms and digital adoption reshape India’s auto market.
He noted that this creates opportunities for original equipment manufacturers (OEMs) to offer feature-rich models, innovative financing options, and integrated digital experiences.
The study indicates that hybrids are set to consolidate market share this festive season, bridging the gap between conventional petrol engines and the emerging electric vehicle segment.
The growing emphasis on safety, premiumisation, and digital engagement underscores the rise of a more informed and aspirational buyer base in India.
Feature Presentation: Rajesh Alva/Rediff
© 2025