Deloitte’s 2024 Global Automotive Consumer Study (GACS) India findings reveal that affordability is a big factor that influences purchasing decisions
19 Feb 2024 | 6230 Views | By Autocar Professional Bureau
Findings from Deloitte’s 2024 Global Automotive Consumer Study (GACS) show that there has been a significant shift in consumer preferences in the Indian automotive sector. Almost 50% of Indian consumers intend to move away from Internal Combustion Engine (ICE) technology, which is proving to be a near-term challenge, and 24% of Indian ...
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Findings from Deloitte’s 2024 Global Automotive Consumer Study (GACS) show that there has been a significant shift in consumer preferences in the Indian automotive sector. Almost 50% of Indian consumers intend to move away from Internal Combustion Engine (ICE) technology, which is proving to be a near-term challenge, and 24% of Indian consumers are inclined towards purchasing Hybrid Electric Vehicles (HEVs) as their preferred engine in their next vehicle, the study shows.
Affordability is a critical factor influencing purchasing decisions, with 80% the consumers choosing a vehicle within Rs 5–25 lakh price range. Preferences for ICE and EV engines under Rs 10–25 lakh stand at 59–58%, respectively. Furthermore, the consumer preference for ICE and EV vehicles in the price range of Rs 10 lakh and below was 23% and 22%, respectively.
About 68% respondents cited environmental consciousness and 63% expressed concerns about the reduced fuel expenses. Charging infrastructure plays a pivotal role, with 66% intending to charge their vehicles at home and 22% at public charging stations. Fast charging is crucial, and most consumers prefer simple traditional credit/debit card payments, signaling the need to simplify the experience using familiar payment methods.
Speaking on the study, Rajeev Singh, Partner and Consumer Industry Leader, Deloitte Asia Pacific, said, “Booming economy and the changing consumer preferences indicate the leaning effect of 'New' cars over 'Used' and the willingness to invest more in connected cars. This offers original equipment manufacturers (OEMs) a prime opportunity for enhanced customer retention services. Transparency is the key—consumers are ready to pay more if OEMs guide them transparently.
Despite a positive trend in EV adoption, infrastructure remains crucial for sustainability. Consumers are eco-conscious and look to OEMs committed to sustainability. The stage is set for OEMs to lead with transparency, innovation, and a green commitment, shaping a future aligned with consumer values.”
The study highlights the maturity in automotive brand adoption, where the discerning Indian consumer is much more knowledgeable and tech-savvy to opt for qualitative features. It is environmentally friendly rather than only being cost-conscious.
From a brand loyalty perspective, the top three reasons to switch vehicle brands away from a manufacturer brand family include a desire to gain access to new technology/features, trying something different and upgrading to a premium brand.
From October 05-12, 2023, Deloitte surveyed a sample of 1,000 consumers in India. The survey has a margin of error for the entire sample of +/-3.1%. The study is fielded using an online panel methodology where consumers of driving age are invited to complete the questionnaire via email.