Consumers exploring both luxury, sustainable mobility alternatives: Survey

PTI New Delhi: Consumers are exploring both luxury and sustainable alternatives, setting the stage for a new era in the Indian automotive sector, according to a survey by Grant Thornton Bharat. As per the survey -- 'Shifting Gears: Understanding Passenger Vehicle Market Trends', 85% of the respondents were considering premium models and there is an increasing preference for hybrid vehicles over electric vehicles (EVs). The survey gathered insights from over 3,500 respondents across the country. According to the survey, 40% of respondents now prefer hybrid vehicles, compared to only 17% favouring EVs.

In contrast, 34% still lean toward petrol vehicles, reflecting the transitional nature of the market, it said. This growing alignment with hybrids suggests that consumers are exploring sustainable options, while waiting for more robust EV infrastructure and incentives, the survey found. Therefore, with hybrid vehicles gaining traction, they are expected to act as a bridge, building consumer familiarity with alternative technologies and ultimately accelerating future EV adoption, it opined. This trend underscores the need for automakers to focus on both hybrid and electric solutions to meet evolving consumer expectations and prepare for a sustainable automotive future, as per the survey findings.

"As market dynamics evolve, automakers must adapt to shifting consumer preferences," Grant Thornton Bharat Partner and Auto & EV Industry Leader Saket Mehra said. Elaborating on further findings, he noted that the festive season, which typically accounts for 30-40 per cent of annual sales, is critical for the Indian automotive industry. However, high inventory levels, weather disruptions, and regional elections have tempered growth this year, he added. The utility vehicle (UV) and sports utility vehicle (SUV) segments have continued to drive the market, witnessing 13 per cent year-on-year growth and now making up 65 per cent of passenger vehicle (PV) sales, he said.