Festive car buyers in India remain unsure: Nearly 1 in 3 undecided, but SUVs remain top choice

India’s passenger vehicle market is entering the festive season on a positive note, with strong buying intent but a significant conversion challenge, as 32.9% of prospective buyers are still evaluating their options, according to Grant Thornton Bharat’s Festive Drive based on its Festive Passenger Vehicle Pulse 2026 survey.

The findings suggest that while consumer interest remains high, buyers are becoming more deliberate in their purchase decisions, weighing factors such as powertrain choices, sustainability, safety, affordability and future-ready technology before committing to their next vehicle.

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The study, which surveyed more than 1,300 consumers and over 500 dealers across India, found that nearly one in four respondents—24.9%—are likely or definite buyers this festive season.

However, a larger pool remains undecided, suggesting that automakers and dealers must move beyond generating enquiries and focus on converting interest into bookings. Consumers are increasingly comparing ownership costs, fuel technologies and future-ready features before committing to a vehicle.

Hybrids have emerged as the preferred powertrain for 37% of respondents, ahead of electric vehicles at 22.8%.

The findings indicate that buyers are seeking a balance between fuel efficiency, lower emissions and confidence in long-term ownership.

Sustainability is also becoming more influential: 70% of respondents said it is either extremely or somewhat important in their next vehicle purchase.

Yet awareness gaps persist. More than four in 10 respondents—40.9%—expressed concerns about engine performance and maintenance implications of E20-compatible vehicles, while only 32.6% were aware of the upcoming CAFE Phase III regulations.

SUVs and crossovers remain the most favoured body style, preferred by 58.3% of respondents, though rising interest in hatchbacks points to consumers balancing aspiration with affordability.

Across segments, safety was the single biggest purchase factor, cited by 57% of respondents. Fuel efficiency followed at 51.6%, while price was cited by 47.2%.

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Saket Mehra, Partner and Auto & EV industry leader at Grant Thornton Bharat, said demand momentum is intact, but conversion will increasingly determine success. He noted that consumers are now assessing vehicles through “total ownership value” rather than upfront price alone.

“The opportunity for the industry is to turn a large pool of interested buyers into confident buyers,” Mehra said, adding that differentiation will depend on customer education, transparency and ownership experience alongside product innovation.

Dealer sentiment remains positive, with strong enquiry levels indicating healthy festive demand. But the report suggests the season’s real test will be whether manufacturers can translate that interest into sales through clearer communication on technology, efficiency, affordability and future readiness.