95% Indian Consumers Open to Paying for SDV Features

Nearly 95 percent of consumers in India say they are willing to pay for Software-Defined Vehicle (SDV) capabilities — including safety features, security services, and continuous vehicle-health reporting — according to the 2026 Deloitte Global Automotive Consumer Study released on Monday. The India segment of the study surveyed 1,501 consumers of driving age between October and November 2025.

The findings point to a shift in how Indian consumers assess vehicle value, with a growing emphasis on connectivity, over-the-air updates, and software-enabled services alongside traditional considerations of price and performance. Among respondents, 81 percent said they find SDVs helpful, and 84 percent expressed willingness to adopt AI-enabled vehicle customisation.

"India is stepping into a new era of mobility shaped by intelligence, sustainability and systemic innovation," said Rajat Mahajan, Partner and Automotive Sector Leader at Deloitte India. "With its scale, technological depth and rapidly expanding innovation landscape, India has the potential to help shape the global direction of software-led, secure and sustainable transportation."

Purchase Behaviour and Brand Switching

Product quality (58 percent), vehicle performance (57 percent), and in-vehicle technology (50 percent) are the three factors most frequently cited as driving purchase decisions. Brand loyalty shows signs of weakening: 70 percent of respondents said they are open to switching brands, and 38 percent had already moved to a different manufacturer, citing new features and technology as the main reasons.

Digital channels have become the primary research tool in the purchase process. Social media platforms and manufacturer websites now serve as the main points of discovery and product evaluation. Despite this shift online, 58 percent of consumers said they trust dealerships most when making a purchase decision, and India records the highest reliance on authorised dealerships for vehicle servicing among the countries covered in the study.

About 79 percent of respondents said they are interested in purchasing insurance directly from vehicle manufacturers, a figure that reflects broader acceptance of direct-to-consumer models in the automotive sector.

Powertrain Preferences: ICE Leads, Hybrids Rise

Internal Combustion Engine (ICE) vehicles remain the first choice for consumers planning their next purchase. Hybrid vehicles are gaining ground as a transition technology, while interest in Battery Electric Vehicles (BEVs) is present but has not accelerated sharply. The study describes EV adoption intent as steady rather than growing at pace.

Infrastructure constraints remain a significant factor shaping EV purchase decisions. Among respondents, 43 percent cited concerns about public charging infrastructure availability, 41 percent raised concerns about charging time, and 38 percent pointed to battery safety and lifecycle issues. Where EV interest exists, it is driven primarily by improved lifestyle experience and lower running costs rather than environmental considerations alone.

On payment methods for public charging, UPI/QR codes are the most preferred option, an outcome the study attributes to the influence of India's digital public infrastructure on consumer behaviour.

More than three-quarters of respondents said they are willing to spend up to INR 25 lakh on their next vehicle, while more than half indicated a budget of up to INR 15 lakh. The INR 5–10 lakh price bracket recorded the most notable growth in consumer preference, pointing to sustained demand for vehicles that are accessible in price but include current technology features.

While receptiveness to connected vehicle services is high, India also records the strongest concern about data sharing among all countries in the global study. Seventy-three percent of respondents said they are concerned about personal device data being shared via connected vehicles, and 72 percent cited vehicle location data as a concern. The report frames these figures as an expectation of greater transparency, privacy safeguards, and responsible data governance from manufacturers and service providers.

The 2026 Deloitte Global Automotive Consumer Study was conducted between October and November 2025 using an online panel methodology. The India sample comprised 1,501 consumers of driving age.