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

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. 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.
   2. 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.
   3. 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.
   4. 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.
   5. 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.
   

About the study

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 percent. The study is fielded using an online panel methodology where consumers of driving age are invited to complete the questionnaire via email.