About 95 percent of Indian consumers are willing to pay for software-defined vehicles, driven by demand for advanced technology features: Deloitte India

• Strong digital and AI readiness shapes the future of mobility, with 81 percent of consumers likely to use an AI-enabled vehicle customisation feature
• ICE vehicles remain the dominant next-purchase choice, with hybrids emerging as the preferred transition technology
• Product quality (58 percent), vehicle performance (57 percent) and in-vehicle technology (50 percent) are the top purchase drivers
  

17 February 2026, National: India’s automotive market is entering a software-first era, with 95 percent of consumers willing to pay for Software-Defined Vehicle (SDV) capabilities such as safety, security and continuous vehicle-health reporting, according to the 2026 Deloitte Global Automotive Consumer Study – India. India stands out in next-generation mobility readiness, with 81 percent finding SDVs helpful and 84 percent willing to adopt AI-enabled customisation. The findings underscore a structural shift in how Indian consumers perceive vehicle value, moving from hardware-centric ownership towards connected, upgradable and service-driven digital mobility. Strong receptiveness to intelligent features, subscription-ready services and continuously evolving vehicle experiences positions India among the most promising global markets for software-led automotive transformation.

Safety, security and trust are emerging as defining pillars of connected mobility adoption in India. Consumers prioritise protective and monitoring capabilities over convenience-led digital features, reinforcing the strong willingness to pay for SDV-enabled services. Simultaneously, India shows the strongest global concern about sharing connected-vehicle data, including 73 percent concerned about personal device data and 72 percent about vehicle location data, pointing to rising expectations around transparency, privacy safeguards and responsible data governance.

Despite rapid digital transformation, physical engagement channels remain deeply relevant. Nearly 58 percent of consumers trust dealers the most, underscoring the importance of integrated physical-digital ownership journeys as mobility becomes more software-centric. India also shows the highest reliance on authorised dealerships for vehicle servicing.

The study highlights evolving consumer expectations across brand choice, purchase behaviour and engagement models in India’s automotive market.

Other emerging consumer and market trends

Purchase intent and engagement

• Brand switching intent remains elevated at 70 percent, while 38 percent of consumers have already shifted to a different brand in pursuit of new features and technology.
• About 79 percent of consumers are interested in purchasing insurance directly from manufacturers, signalling growing acceptance of direct-to-consumer automotive models.
• Digital research now dominates the purchase journey, with social media platforms and manufacturer websites serving as primary discovery and evaluation channels.

Powertrain transition

• Internal Combustion Engine (ICE) vehicles continue to dominate next-purchase intent, while hybrids are emerging as the preferred transition technology.
• Interest in Battery Electric Vehicles (BEVs) remains visible, though overall EV adoption intent has risen slightly.
  
  

EV adoption dynamics

• Electric vehicle adoption in India is progressing at a measured pace, with intent remaining steady rather than accelerating.
• Ecosystem constraints continue to shape decisions, including concerns around public charging infrastructure (43 percent), charging time (41 percent) and battery safety and lifecycle issues (38 percent).
• Strong preference for dedicated charging and high sensitivity to public charging costs highlight the importance of infrastructure readiness, even as EV appeal remains driven by improved lifestyle experience and lower running costs.
  

Affordability and price expectations

• Over three-quarters of consumers are willing to spend up to INR25 lakh on their next vehicle, while more than half are prepared to spend up to INR15 lakh.
• The most notable growth in preference is within the entry-level INR5–10 lakh price bracket, underscoring sustained demand for accessible yet feature-rich mobility.
  
  

Payment preferences

• UPI/QR remains the preferred method for public charging payments, reflecting the influence of India’s digital public infrastructure on mobility behaviour.
• These insights indicate that India’s mobility evolution will be defined by software-led intelligence, safety-centric digital services and value-driven electrification, positioning the country as a key global market in the transition towards connected, intelligent and continuously evolving transportation.

About the survey

The study was conducted between October and November 2025 using an online panel methodology. A total of 1,501 consumers of driving age across India participated in the survey, completing a questionnaire translated into local languages and distributed via email.