One in three car buyers still undecided as festive sales season begins: Report

India's passenger vehicle market is entering the festive season with healthy demand, but 32.9% of prospective buyers are still evaluating their options, presenting a sizeable conversion opportunity for automakers and dealers, according to Grant Thornton Bharat. 

The firm's Festive Drive: What Consumers Want in Their Next Ride, based on its Festive Passenger Vehicle Pulse 2026 survey, found that while 24.9% of respondents are likely or definite buyers, a larger pool remains in the consideration stage. The survey covered more than 1,300 consumers and over 500 dealers across India, examining 16 themes across the passenger vehicle ecosystem. 

Hybrids ahead of EVs 

Consumers are increasingly looking beyond upfront prices and weighing fuel technology, long-term ownership costs, sustainability and future-readiness before making a purchase. 

Hybrid vehicles emerged as the preferred powertrain for 37% of respondents, ahead of electric vehicles at 22.8%, reflecting a preference for solutions that balance efficiency, lower emissions, and ownership confidence. 

Sustainability is also gaining importance, with 70% of respondents considering it either extremely or somewhat important while choosing their next vehicle. 

Safety remains the top priority 

Despite evolving preferences around mobility technologies, safety remains the biggest purchase consideration, cited by 57% of respondents, followed by fuel efficiency at 51.6% and price at 47.2%. 

SUVs and crossovers continue to dominate preferences, with 58.3% of respondents favouring the segment, though growing interest in hatchbacks indicates a balance between aspiration, affordability and ownership value. 

Awareness gap over regulations 

The survey also highlighted gaps in consumer awareness around India's evolving fuel and regulatory landscape. About 40.9% of respondents expressed concerns about engine performance and maintenance implications associated with E20-compatible vehicles while only 32.6% were aware of the upcoming CAFE Phase III regulations. 

Dealer sentiment remains positive, with strong enquiry levels indicating healthy festive demand, though conversion into actual sales will remain the key factor to watch. “India's passenger vehicle market enters the festive season with demand momentum intact, but conversion will increasingly determine success,” said Saket Mehra, Partner and Auto & EV Industry Leader, Grant Thornton Bharat. 

“Consumers today are better informed, more selective and evaluating vehicles through the lens of total ownership value rather than upfront price alone,” he said, adding that fuel choices, sustainability, safety and future-readiness are reshaping the market. 

The report said the next phase of growth will depend on how effectively automakers and dealers turn interested consumers into buyers through powertrain innovation, transparent ownership costs, customer education, and a stronger after-sales experience.