Deloitte’s latest research, the Global Automotive Consumer Study for 2024, casts a spotlight on India’s car market, showcasing a robust pivot toward Hybrid Electric Vehicles (HEVs). This transition, fueled by the dual engines of environmental responsibility and the appeal of lower fuel costs, signifies a transformative moment for India’s vehicular dynamics.
Surveying 1,000 Indian consumers, the study unveils that price remains a decisive factor in vehicle purchases, with an overwhelming majority targeting the INR 5–25 lakh price range. Despite the surge in hybrid interest, the findings also suggest a balanced affinity for both ICE and Electric Vehicle (EV) engines across diverse budgetary preferences.
The survey emphasizes environmental concern as a key driver for many, with two-thirds of respondents prioritizing it in their decision-making process. The study also highlights a critical need for accessible charging infrastructure, revealing a preference for at-home charging solutions and the demand for rapid charging technology paired with user-friendly payment options.
Rajeev Singh, Deloitte Asia Pacific’s Partner and Consumer Industry Leader, reflects on the shifting consumer attitudes, pointing out the golden opportunity for Original Equipment Manufacturers (OEMs) to foster deeper loyalty through commitments to transparency and environmental integrity.
Key insights from the study also include:
- Direct Insurance Offerings by OEMs: A trend towards manufacturers providing insurance directly, disrupting traditional channels and drawing 83 percent of consumers with its convenience and potential cost savings.
- Connectivity and Safety: A strong consumer focus on safety enhancements through connected vehicle technologies, with a willingness to invest in features that promote road safety and vehicle upkeep.
- Preference for Brand-New Vehicles: The desire for the latest vehicle technology and the allure of owning something brand new drives 77 percent of consumers towards purchasing new vehicles over used ones.
- OEMs and Sustainability: A near-universal agreement among consumers that vehicle manufacturers must engage in sustainable practices, emphasizing the critical role of environmental stewardship.
- Rising Interest in Vehicle Subscriptions: A significant interest among the younger demographic for vehicle subscription models, pointing towards a shift from traditional ownership to more flexible, cost-effective alternatives.
Conducted in the first half of October 2023, Deloitte’s GACS for 2024 offers a nuanced look into the evolving preferences and trends within the Indian automotive sector. This study not only underscores the rising demand for hybrid vehicles but also provides insight into broader shifts that could reshape the automotive landscape.
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