The survey revealed that 38 per cent of consumers now prefer hybrid vehicles – surpassing petrol and EVs.India’s passenger vehicle (PV) market is heading for a strong festive season, buoyed by rising demand for hybrids and SUVs, greater affordability following GST rationalisation, and growing consumer confidence, according to a new survey by Grant Thornton Bharat.
The study, titled ‘Festive Drive: What Consumers Want in Their Next Ride’, captured responses from over 2,800 consumers across cities and age groups. It found that 41 per cent of respondents plan to buy a vehicle in the next three to four months, while 72 per cent delayed their purchase decisions in anticipation of GST reforms- indicating the significant impact of policy changes on buying sentiment.
The survey revealed that 38 per cent of consumers now prefer hybrid vehicles – surpassing petrol (30 per cent) and EVs (21 per cent) – while SUVs remain the top choice for 64 per cent of respondents, up from nearly 50 per cent two years ago.
What’s driving ahead?
Safety is also taking precedence, with 34 per cent of respondents ranking it above price and mileage. The premiumisation trend remains strong, as 35 per cent are willing to pay extra for higher-end variants, and 65 per cent accept a price premium of 10–15 per cent.
Digital engagement continues to shape car buying behaviour, with 52 per cent using both online and offline channels, and social media (35 per cent) and car apps (23 per cent) emerging as the preferred discovery platforms.
“This festive season is not just a sales window, it signals deeper shifts in consumer behaviour,” said Saket Mehra, Partner and Automotive Industry Leader, Grant Thornton Bharat. “The growing preference for hybrids, rising safety consciousness, and willingness to pay for premium features reflect a more informed and aspirational buyer.”
Grant Thornton Bharat noted that the reduction of GST on small cars from 28 per cent to 18 per cent could lower acquisition costs by up to ₹1 lakh, particularly benefitting Tier-II and Tier-III city buyers.
With PV retail sales rising 34 per cent during Navratri 2025, supported by stable interest rates, rising disposable incomes, and government incentives, India’s automotive market is poised for a festive season that could mark a turning point in consumer sentiment and sales momentum.
