Most Indian Car Buyers Willing to Spend More on Advanced Tech, Software Features: Report

As the automotive industry moves towards software-defined vehicles with always-on Internet connectivity, buyers are increasingly likely to prioritise and spend more money on features that allow for improved safety and remote monitoring, according to a recently published study by consulting firm Deloitte. The company has published the 2026 edition of its Global Automotive Consumer Study – India, based on an online survey of 1,501 consumers of driving age across India.

According to the findings of the study, product quality is the most important criteria for basing a purchase decision on (58 percent), with vehicle performance (57 percent) and in-vehicle technology (50 percent) coming in only slightly behind. Approximately 95 percent of respondents are willing to pay for software-defined vehicles. AI-enabled features were seen positively by 81 percent. 

Over 75 percent of respondents were willing to spend up to ₹25 lakh on their next vehicle, and more than half were prepared to spend up to ₹15 lakh.

The findings show that Indian consumers are willing to move from the traditional hardware ownership model to more connected mobility service solutions. India is also emerging as a promising global market for software-defined vehicles, intelligent features, and even subscription services. Notably, 70 percent of respondents were willing to switch brands in order to get the new features and technology they want in a new vehicle.

However 73 percent of respondents indicated concern about the security of their personal data, and 72 percent were wary of how their location data would be used.

Rajat Mahajan, Partner and Automotive Sector Leader, Deloitte India, said “India is stepping into a new era of mobility shaped by intelligence, sustainability and systemic innovation. Going forward, leadership in mobility will be defined by the scale of vehicles produced and by the strength of the digital, energy and trust ecosystems that surround them. With its scale, technological depth and rapidly expanding innovation landscape, India has the potential to help shape the global direction of software-led, secure and sustainable transportation,” said 

ICE cars and bikes are still the most likely choice for those who want to buy a vehicle, although hybrids are emerging as a viable transition technology and EV adoption interest has grown marginally. The main concerns expressed about EV adoption are the state of public charging infrastructure, charging time and cost, and battery safety and lifecycle.

Interestingly, 58 percent of consumers still said they trust offline dealers most, even as research is now heavily conducted online, primarily across social media platforms and manufacturers’ own websites.