Daijiworld Media Network - New Delhi

New Delhi, Nov 5: Nearly one in three Indian consumers surveyed are still considering buying a car during the ongoing festive season, with fuel technology, ownership costs and vehicle features emerging as key factors influencing their decisions, according to a new survey by Grant Thornton Bharat.

The Festive Passenger Vehicle Pulse 2026 found that 32.9 per cent of respondents were still exploring their options, while 24.9 per cent described themselves as likely or definite buyers during the festive season. Another 42.2 per cent said they were unlikely to purchase a vehicle.

Based on responses from more than 1,300 consumers and over 500 automobile dealers across India, the survey indicates that converting consumer interest into confirmed purchases remains a major challenge for automakers, despite strong passenger vehicle sales.

The findings come amid robust growth in the automobile market. According to the Society of Indian Automobile Manufacturers (SIAM), passenger vehicle sales stood at around 2.61 million units in the first half of the 2026-27 financial year, registering a 28 per cent increase over the corresponding period last year.

SUVs and crossovers continue to dominate consumer preferences, with 58.3 per cent of respondents choosing these categories. However, their preference declined from 64 per cent in the 2025 survey.

Hatchbacks gained popularity, with preference increasing from 10 per cent to 16.6 per cent. Sedan preference fell from 21 per cent to 16.6 per cent, while multi-purpose and multi-utility vehicles accounted for 8.3 per cent of responses.

The shift broadly reflects the changing composition of India's passenger vehicle market. Utility vehicles accounted for 68 per cent of passenger vehicle sales in the first half of FY27, compared with 65 per cent in FY25 and around 60 per cent in FY24.

In terms of fuel technology, hybrid vehicles remained the most preferred option, chosen by 37 per cent of respondents, broadly unchanged from 38 per cent in 2025. Electric vehicle preference rose from 21 per cent to 22.8 per cent, while petrol vehicle preference increased from 30 per cent to 31.3 per cent. Diesel remained the least preferred option at 8.8 per cent.

The findings suggest that consumers are increasingly considering electrified vehicles but continue to evaluate them against practical concerns, including charging infrastructure, convenience and overall ownership costs.

Sustainability is also gaining importance in purchasing decisions, with 70 per cent of respondents rating it as either extremely or somewhat important. However, consumers appear to associate sustainability largely with practical benefits. Better fuel efficiency was identified as an important consideration by 66.6 per cent, followed by hybrid technology at 49.5 per cent and lower emissions at 46.9 per cent.

Digital media and influencers emerged as the biggest sources of influence during the vehicle research process, cited by 44.8 per cent of respondents. Friends and family accounted for 38.6 per cent, while traditional media and dealer recommendations were cited by 9.6 per cent and seven per cent respectively.

Despite the growing influence of digital platforms, dealerships continue to play a central role in completing vehicle purchases. The survey found that 68.7 per cent of consumers preferred a dealership-led purchase journey, while 30.3 per cent planned to research vehicles online before visiting a dealer. Only one per cent expected to complete the entire purchase online.

Awareness of upcoming fuel-efficiency regulations remains limited. Only 32.6 per cent of respondents said they were aware of the proposed Corporate Average Fuel Efficiency (CAFE) Phase III norms, while 67.4 per cent were unaware of them.

The survey also highlighted mixed consumer perceptions of E20-compatible vehicles, which are designed to use petrol blended with up to 20 per cent ethanol. Concerns about engine performance and maintenance were expressed by 40.9 per cent of respondents.

While 20.5 per cent viewed E20 compatibility as a future-ready feature, 15.8 per cent said they needed more information. Another 12.7 per cent said compatibility would not influence their purchase decision, while 10.1 per cent primarily associated it with environmental benefits.

The report noted that automakers and dealers would need to focus on powertrain innovation, affordable and accessible technology, transparent ownership costs and reliable after-sales service to convert consumer interest into actual sales.