2026 Global Automotive Consumer Study

Trends affecting the Indian mobility ecosystem

India’s domestic passenger vehicle market reached unprecedented heights in 2025. While the surge in sales is an encouraging headline indicator, the real story lies in shifting consumer trends signalling a market that remains value-driven but is increasingly shaped by digital experiences, advanced features and performance.

This report explores key trends across EV adoption, purchasing preferences, connectivity, mobility, and services to help automotive players navigate and shift gears for the road ahead.

Trend 1: Vehicle electrification

For Indian consumers, ICE remains the dominant choice for the next vehicle, while hybrids rank second, indicating a strong preference for “transition technology”. Interest in BEVs is evident, but adoption intent remains steady rather than rising.
 

Trend 2: Future vehicle intentions

Over three quarters of customers willing to spend under INR25 lakh on their next vehicle. About 84 percent of vehicle owners in India plan to buy a new vehicle, with used buyers preferring models under three years old.

Trend 3: Connectivity

Consumers prioritise safety and security when paying for connected vehicle technologies. Emergency assistance, anti theft tracking and automatic vehicle and pedestrian detection outrank convenience and entertainment features.

Trend 4: Software-defined vehicles

With broad acceptance of Software-defined Vehicles (SDVs) and growing interest in integrated digital services, India is well positioned to scale SDVs as the core of its connected mobility future.