The festive season has brought a surprise shift in India’s auto market — hybrid vehicles have overtaken both petrol and electric models as the top choice for car buyers. According to Grant Thornton Bharat’s latest survey, hybrids now lead festive demand, reflecting India’s growing appetite for practical innovation over hype.
The nationwide survey, conducted over a month across multiple cities and demographics with over 2,800 respondents, found that 38% of buyers prefer hybrids, compared with 30% opting for petrol and 21% for electric vehicles (EVs). The data underlines a changing consumer mindset that favours balance — performance with efficiency, innovation with reliability.
The shift also signals consumer caution. Many buyers remain unconvinced about the country’s EV infrastructure and resale value. Hybrids, seen as a low-risk bridge between conventional and electric, combine fuel efficiency with fewer charging anxieties — a comfort that resonates across India’s Tier 2 and Tier 3 cities.
The report notes a rebound in consumer enthusiasm, with 41% of respondents planning to buy a vehicle within the next three to four months. This comes after nearly 72% deferred purchases earlier this year, waiting for clarity on GST 2.0 rationalisation. The anticipation of simplified tax slabs and affordability reforms seems to have rekindled confidence.
SUVs continue to dominate the Indian passenger vehicle space, with 64% of respondents choosing them, in line with the segment’s surge to 65% of FY25 sales — up from about half of the market two years ago. Safety has also become a decisive factor, with 34% of buyers prioritising crash-test ratings and tech-enabled safety systems over mileage or price. It marks a cultural shift: Indian consumers are no longer buying on emotion alone — they’re buying on assurance.
The study found a clear tilt toward premiumisation, with more than 35% of respondents ready to pay extra for high-end variants, and 65% open to a 10–15% price premium for added features such as connected displays, ADAS systems and smart infotainment.
Equally transformative is how buyers are discovering and finalising their choices. Digital discovery has become mainstream — 52% of car buyers now rely on a mix of online and offline channels, while social media (35%) and auto apps (23%) are among the most influential sources of purchase inspiration. Virtual test drives, influencer reviews and dealership live streams are quietly replacing the traditional showroom walk-in.
Festive sentiment and fiscal stability have together created fertile ground for growth. The survey highlights a 34% jump in passenger vehicle retail sales during Navratri 2025, powered by GST-led affordability, new product launches and an upswing in upgrade purchases.
Stable interest rates, rising disposable income, and government initiatives — including tax simplifications and EV incentives — are expected to sustain momentum across both metropolitan and semi-urban markets.
According to Saket Mehra, partner and automotive industry leader at Grant Thornton Bharat, the current festive season signals “deeper behavioural shifts” in how India buys cars. “GST reforms, affordability and digital integration are not just driving sales — they’re redefining expectations. This is an opportunity for OEMs to deliver feature-rich models, smarter finance and seamless digital experiences,” he said.
The report suggests that hybrids are set to consolidate market share, serving as a transition technology between petrol engines and full electric mobility. With safety, digital engagement and premiumisation now shaping decisions, the modern Indian buyer is emerging as data-driven, aspirational and distinctly aware — marking the evolution of a market once guided purely by price and mileage.
