Research firm Grant Thornton Bharat has released the results of a study into Indian car buyers’ preferences during the 2026 festive period. The report covers the profiles of prospective buyers, what kind of cars they are inclined to choose, and how they conduct their research and buying processes. It also calls on car manufacturers, dealers, and financial institutions to make the entire customer journey smoother, as buyers increasingly look for answers about affordability, technology, running costs, and other evolving factors.
Buyers in 2026 have more viable options when it comes to powertrains, and price alone is no longer the only factor determining value. Buyers increasingly consider safety, technology, and even sustainability before making their final purchase decision. However, the survey has identified gaps in buyer awareness and confidence regarding emerging trends and changes including fuels.
The survey polled over 1,300 consumers and 500 dealers. SUVs remain the most popular car body type, but interestingly, the percentage of interested buyers has fallen from 64 percent last year to 58.3 percent in 2026. This has been offset by renewed interest in hatchbacks, growing from 10 percent to 16.6 percent this year. The change can be attributed to the addressable market growing as prices fell in the wake of GST 2.0 reforms, and improvements in models available. Sedans were tied at 16.6 percent, while MPVs came in at 8.3 percent.
Powertrain choice remained stable year-on-year, with 37 percent of respondents saying hybrids were their first choice, and EV interest growing from 21 percent to 22.8 percent. Interestingly, 41 percent of respondents expressed concerns about maintenance due to the introduction of E20 blended petrol.
As for the reason for purchasing a car this festive season, 48.7 percent said they were replacing or upgrading an existing car, while 16.1 percent said better fuel efficiency was their main motivation. The survey showed that experienced buyers, who were not going through the process for the first time, were looking for meaningful improvements in running costs, safety, and technology. According to Grant Thornton, this means presenting a clear upgrade path and explaining new features is key to converting intentions into actual sales.
Buyers are also generally willing to pay a little more for more premium features, which means manufacturers need to clearly differentiate variants, explain the benefits of each incremental step up, and justify price gaps. The majority of respondents, at 36.8 percent, said they were comfortable with costs increasing by 5 percent at most, while only 9.6 percent would go over budget by more than 15 percent.
Interestingly, 44.8 percent of respondents said digital media and influencers were their primary sources of information, with friends and family coming in at 38.6 percent and only 9.6 percent relying on traditional media. Dealer recommendations were the least important at 7 percent, showing that third parties are seen as more relevant and trustworthy. Unsurprisingly, 75.1 percent said digital media cannot replace a traditional test drive, but 11.9 percent said yes, while 13 percent said it depends on the vehicle. This potentially shows manufacturers how to direct marketing efforts and create an online-offline pathway.
