As India's festive season approaches, a period historically marked by high vehicle sales, a significant portion of potential car buyers remain uncertain about their purchase decisions. A recent survey by Grant Thornton Bharat indicates that nearly one in three prospective buyers (32.9%) are still weighing their options, highlighting a challenge for automakers to convert interest into firm bookings.
Buyer Intent High, But Conversion Lags
The "Festive Passenger Vehicle Pulse 2026" survey, which polled over 1,300 consumers and 500 dealers across India, found a strong underlying buying intent, with 24.9% of respondents identifying as likely or definite buyers. However, the large pool of undecided consumers suggests a shift towards more deliberate purchasing. Buyers are increasingly scrutinizing factors such as powertrain choices, sustainability, safety features, affordability, and future-ready technology.
SUVs Dominate Preferences, Hybrids Lead Powertrain Choices
Despite the overall indecision, certain trends are clear. Sport Utility Vehicles (SUVs) and crossovers continue their reign as the most popular body style, favored by 58.3% of respondents. While interest in hatchbacks is also noted, SUVs clearly align with consumer aspirations.
Regarding powertrain, hybrid vehicles have emerged as the preferred option for 37% of buyers, outranking electric vehicles (EVs) at 22.8%. This preference suggests a desire for a balance between fuel efficiency, lower emissions, and confidence in long-term ownership, reflecting concerns about EV infrastructure and range anxiety.
Safety and Sustainability Top Decision Factors
Safety has become the paramount consideration for Indian car buyers, cited by 57% of respondents as the single biggest purchase factor. Fuel efficiency followed closely at 51.6%, with price being a key determinant for 47.2% of consumers. Sustainability is also gaining traction, with 70% of respondents considering it either extremely or somewhat important in their next vehicle.
However, awareness gaps persist. Over 40% of buyers expressed concerns about engine performance and maintenance implications for E20-compatible vehicles, while only 32.6% were aware of the upcoming CAFE Phase III regulations, indicating a need for greater consumer education.
Industry Focus: Education and Total Ownership Value
"Demand momentum is intact, but conversion will increasingly determine success," stated Saket Mehra, Partner and Auto & EV industry leader at Grant Thornton Bharat. "Consumers are now assessing vehicles through 'total ownership value' rather than upfront price alone. The opportunity for the industry is to turn a large pool of interested buyers into confident buyers."
Mehra emphasized that differentiation for manufacturers will depend on customer education, transparency, and a superior ownership experience, alongside continuous product innovation. Dealers maintain a positive outlook, reporting strong enquiry levels, but the festive season's true success will hinge on the industry's ability to clarify technology, efficiency, and future readiness for the discerning Indian car buyers.