Almost 50% of Indian consumers opt out of ICE to embrace environment conscious hybrid tech: Deloitte 2024 Global Automotive Consumer Study

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Women working with gender equality leading organisations have three times higher loyalty, productivity, motivation, and belongingness scores than those working with laggards: Deloitte’s Women @ Work survey
Women working with gender equality leading organisations have three times higher loyalty, productivity, motivation, and belongingness scores than those working with laggards: Deloitte’s Women @ Work survey
Deloitte’s 2024 Global Automotive Consumer Study (GACS) India findings  reveal the dynamic shift in consumer preferences in the Indian automotive sector. Almost 50 percent  of Indian consumers intend to move away from Internal Combustion Engine (ICE) technology, which is  proving to be a near-term challenge, and 24 percent of Indian consumers are inclined towards  purchasing Hybrid Electric Vehicles (HEVs) as their preferred engine in their next vehicle. 
Affordability is a critical factor influencing purchasing decisions, with 80 percent of the consumers  choosing a vehicle within INR 5–25 lakh price range. Preferences for ICE and EV engines under INR 10– 25 lakh stand at 59–58 percent, respectively. Furthermore, the consumer preference for ICE and EV  vehicles in the price range of INR 10 lakh and below was 23 percent and 22 percent, respectively. 
About 68 percent of respondents cited environmental consciousness and 63 percent expressed  concerns about the reduced fuel expenses. Charging infrastructure plays a pivotal role, with 66 percent  intending to charge their vehicles at home and 22 percent 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. 
The study underscores the need for responsible battery management, as consumers expect dedicated  battery recycling companies, EV battery manufacturers, and vehicle dealers to take the lead in  collecting, storing, and recycling EV batteries. While challenges such as charging time, infrastructure  availability, and battery safety persist, the study indicates a prevailing consumer preference for hybrid  technology while purchasing their next vehicle. 
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 keyconsumers 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 environment-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. 
Other key emerging trends: 
  1. OEMs are looking to offer in-house insurance products, signalling a significant disruption for  the traditional value chain.
About 83 percent consumers were interested in purchasing insurance directly from the  manufacturer, citing “convenience” and “cost saving” over the current provider.  
  1. Connected vehicles: Safety is a key priority for India. 
Consumers are willing to share data and/or vehicle/Personally Identifiable Information (PII) data with the car manufacturer to receive the necessary updates for a better and safer driving  experience. Indian consumers prioritise safety when it comes to connected vehicles. About 71  percent consumers were willing to pay extra for connectivity features, with 88 percent  desiring updates for road safety and collision prevention, and another 88 percent seeking  maintenance updates and vehicle health reporting/alerts. 
  1. New vehicle versus used car trend 
Despite consumers’ interest in new and used cars, most prefer buying a new car for the next  vehicle. About 77 percent consumers are willing to switch brands, citing technology features  (64 percent) and a desire for something new (50 percent) as primary reasons. 
  1. OEM commitment to sustainability 
Most consumers (98 percent) believe that vehicle brands must commit to sustainable  practices, such as using environmentally friendly materials and a low carbon manufacturing  footprint. 
  1. Younger consumers opt for vehicle subscriptions 
Younger consumers are driving overall interest in vehicle subscriptions. 
About 6 in 10 consumers want to give up vehicle ownership for a subscription service. Cost  control, convenience, availability of vehicles, and increased flexibility are the most important  factors for these consumers. Nearly 67 percent of consumers in the age group of 18–34  preferred vehicle subscriptions. However, vehicle availability, higher monthly fees, and total  ownership costs are the main concerns consumers have regarding vehicle subscription  services.