India's Automotive Market Shifts Gears: Premium and Hybrid Cars Drive Festive Season Trends

Grant Thornton Bharat's survey reveals a notable shift in consumer preferences in India's automotive sector. As 85% of respondents show interest in premium vehicles and 40% favor hybrids over EVs, the industry faces transformative trends. This festive season offers a pivotal opportunity for manufacturers to meet growing demand and innovate their approach.

Grant Thornton Bharat's recent survey, titled 'Shifting Gears: Understanding Passenger Vehicle Market Trends,' highlights a considerable shift in consumer preferences during the festive season, pointing to a transformation in India's automotive industry. The study reveals 85% of respondents are now leaning towards premium vehicles, while a significant portion is also considering hybrid models over electric vehicles (EVs).

The survey indicates a rise, with 40% of respondents opting for hybrids, a notable increase compared to past years, with only 17% preferring EVs. This trend reflects a new era in the automotive sector, where consumers are exploring both luxury and sustainability options. Despite a continued preference for petrol-powered vehicles among 34% of respondents, the industry is witnessing a transitional phase.

Saket Mehra, Partner and Auto & EV Industry Leader at Grant Thornton Bharat, remarked on the market's dynamics, noting a 30-35% sales increase in early October. This, as consumers expect significant discounts this festive season, presents a unique opportunity for automakers to align with evolving preferences and leverage digital engagement strategies.

(With inputs from agencies.)