Over 32.9 percent of prospective passenger vehicle buyers remain in the evaluation and consideration stage ahead of the festive season, presenting a significant sales conversion opportunity for automakers and dealers across India, according to Grant Thornton Bharat’s Festive Passenger Vehicle Pulse 2026 report.
Based on a survey of over 1,300 consumers and 500 dealers, the report notes that while 24.9 percent of respondents are definite or likely buyers, the sizeable pool of undecided consumers reflects an increasingly selective market where purchasing decisions are guided by long-term ownership economics, safety, and emerging powertrain choices rather than initial price alone.
Hybrids Become Primary Powertrain Preference
In terms of fuel technology, hybrid vehicles have emerged as the single most preferred powertrain option for 37.0 percent of surveyed consumers, maintaining a dominant lead over fully electric vehicles, which were favored by 22.8 percent of respondents. Conventional petrol engines attracted 31.3 percent of buyer preference, while diesel remained at 8.8 percent. The preference for hybrids underscores consumer demand for lower-emission solutions that deliver high fuel efficiency without causing charging infrastructure dependency or range anxiety.
Vehicle segment choices continue to be led by SUVs, with 58.3 percent of consumers preferring SUVs and crossovers, albeit down from 64 percent in 20. Small cars and hatchbacks witnessed a recovery in interest, rising to 16.6 percent from 10 percent in the previous year's survey, as buyers seek accessible urban mobility options that combine modern safety features with fuel efficiency. When evaluating vehicle purchases, safety emerged as the paramount consideration for 57.0 percent of buyers, followed closely by fuel efficiency at 51.6 percent, overall price at 47.2 percent, and connected features or technology at 43.0 percent.
Low CAFE III Awareness and E20 Engine Concerns
The report also highlighted significant gaps in consumer awareness regarding upcoming regulatory and fuel transitions. Only 32.6 percent of respondents reported being aware of the Corporate Average Fuel Efficiency (CAFE) Phase III regulations scheduled for implementation from April 2027.
Furthermore, 40.9 percent of buyers expressed concerns regarding engine performance and long-term maintenance implications related to E20-compatible ethanol-blended petrol vehicles, emphasizing an urgent requirement for model-specific ownership assurance and transparent communication from original equipment manufacturers.