Deloitte Study Reveals Growing Interest in Hybrid Vehicles Among Consumers in India
Deloitte’s 2024 Global Automotive Consumer Study (GACS) reveals a significant trend in India’s automotive sector, with nearly half of Indian consumers shifting towards Hybrid Electric Vehicles (HEVs) and moving away from traditional Internal Combustion Engine (ICE) vehicles. This transition is mainly driven by environmental concerns and the desire to reduce fuel expenses, marking a critical moment in India’s automotive landscape.
Affordability and Engine Preferences
The study highlights affordability as a key factor in purchasing decisions, with 80% of consumers looking for vehicles within the INR 5–25 lakh range. Despite the shift towards HEVs, there remains a strong preference for both ICE and Electric Vehicle (EV) engines across various price brackets, with 59–58% favoring ICE engines and 58–57% interested in EVs.
Environmental Concerns and Charging Infrastructure
Environmental consciousness is a significant consideration for 68% of respondents. The study also emphasizes the importance of charging infrastructure, noting that 66% of consumers plan to charge their vehicles at home, while 22% prefer public charging stations. Consumers favor fast charging capabilities and simple payment methods like credit/debit card transactions.
Responsible Battery Management
The need for responsible battery management is underscored, with expectations for proactive efforts from battery recycling companies, EV battery manufacturers, and vehicle dealers to address challenges such as charging time, infrastructure availability, and battery safety.
Consumer Preferences and Emerging Trends
✅ In-House Insurance Offerings: OEMs are introducing in-house insurance products, with 83% of consumers interested in this convenient and cost-saving option.
✅ Connected Vehicles and Safety: Safety is a top concern, with 71% of respondents willing to pay extra for connectivity features that enhance road safety and vehicle maintenance.
✅ New Vehicle Preference: A majority (77%) prefer new vehicles for their next purchase, attracted by the latest technology/features and the appeal of something new.
✅ OEM Commitment to Sustainability: An overwhelming 98% of consumers demand that vehicle brands commit to sustainable practices, including environmentally friendly materials and low carbon manufacturing processes.
✅ Rise of Vehicle Subscriptions: Especially among younger consumers (aged 18–34), there is a growing interest in vehicle subscription services over traditional ownership, driven by factors like cost control and flexibility.
Conclusion
Conducted from October 5th to 12th, 2023, the Deloitte study surveyed 1,000 Indian consumers, offering insights into the evolving preferences and behaviors in India’s automotive market. Rajeev Singh, Partner and Consumer Industry Leader at Deloitte Asia Pacific, notes the growing affinity towards new, connected, and environmentally sustainable vehicles as a significant opportunity for OEMs to enhance customer retention services through transparent engagement.
