1 in 3 Car Buyers are Likely to Buy an Electric Vehicle, Reveals Survey

As India gears up for the festive season—a period traditionally marked by increased consumer spending—Way2News, a leading hyperlocal news platform, has released its latest report titled “Gearing Up: A Look at India’s Car-Buying Mindset.” Based on insights gathered from over 400,000 respondents across the 5 South Indian states - Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, and Kerala - the report provides a comprehensive look into the evolving preferences and behaviours of car buyers in South India during this crucial sales period for the automobile industry.

While the 2023 festive season recorded the automobile industry’s highest-ever sales figures—buoyed by a 19% sales spike driven by pent-up demand—2024 paints a contrasting picture. The Indian automobile market has experienced a notable slowdown, with recent reports indicating that approximately 7 lakh unsold cars, valued at around ₹70,000 crores, are currently stagnating at dealerships across the country. If not addressed, this surplus inventory could impose significant financial strain on dealers. Traditionally, the festive season from Navratri to Diwali has been a make-or-break period for automakers, with car sales often peaking as consumers time their purchases to align with auspicious dates. However, in 2024, this period represents more than just a cultural milestone—industry experts view this festive season as the automobile industry’s best chance to reverse the downward trend and reignite demand. Notably, the Way2News survey aligns with this, revealing that 42% of respondents plan to buy or upgrade their car within the next 12 months, signalling a potential resurgence in sales after a challenging period. Strategic marketing efforts, informed by consumer behaviour data, could help automakers turn this challenge into a success story.

In line with these evolving industry trends, the Way2News survey has uncovered several striking trends that could provide valuable insights for automakers looking to tap into consumer sentiment. Shifting priorities, a strong preference for SUVs, a growing interest in electric vehicles (EVs), and an increasing reliance on digital platforms are shaping the auto-buying landscape in South India.

Key Insights from the Report:

1. Safety Takes Precedence: One of the most notable shifts in the report is the emergence of safety features as a critical factor for car buyers. 43% of respondents cited safety—such as airbags, ABS, and advanced driver assistance systems (ADAS)—as their top priority, surpassing traditional decision drivers like price or fuel efficiency. This heightened focus on safety reflects a growing awareness of road safety among South Indian buyers, a marked shift from previous years when aesthetics and affordability led decision-making

2. SUVs Dominate the Market: The report highlights the continued dominance of SUVs, with 58% of respondents showing a strong preference for this category.  The growing popularity of SUVs is not just a trend—it’s a reflection of the lifestyle aspirations of modern buyers, who prioritize space, power, and practicality. SUVs are no longer just vehicles—they are seen as a lifestyle upgrade, symbolizing status and comfort. In contrast, other vehicle categories like sedans (20%), hatchbacks (14%), and MUVs (8%) serve niche markets but trail significantly behind SUVs

3. Electric Vehicles Gain Ground: In what may be one of the most surprising findings, 31% of respondents expressed interest in purchasing electric vehicles (EVs), signalling a major shift toward sustainability. With 65% of buyers prioritizing eco-friendly options, and with Union Minister Nitin Gadkari’s push to phase out diesel vehicles gaining traction, the Indian auto industry is clearly on the verge of embracing cleaner, greener alternatives. The report underscores that the green wave is not just a trend; it’s a fundamental shift that is likely to reshape the industry in the years to come

4. Digital Platforms Drive Decision-Making: The Way2News report also emphasizes the growing influence of digital platforms in car-buying decisions. Over two-thirds of respondents now rely on online resources, including social media, comparison websites, and online reviews, to inform their vehicle purchases. This shift towards digital-first research underlines the importance of online presence and reputation for automakers and dealerships alike

5. Financing Flexibility a Crucial Factor: With rising fuel costs and increased loan interest rates, car loans and instalment plans have become a go-to option for over half of the respondents. The report indicates that affordability and financing options will play a crucial role in driving sales during the festive period, making it important for automakers to offer flexible financing solutions to attract buyers

“The findings of this survey highlight a transformative shift in consumer priorities. Safety, SUVs, and sustainability are no longer just trends; they are the core drivers of the auto industry in South India as we approach this festive season. As automakers adapt to these changing preferences, understanding consumer sentiment will be key to navigating the challenges of this year and harnessing the opportunities the festive season brings,” said Raju Vanapala, Founder and CEO of Way2News.

As South India enters the festive season, the focus is not merely on driving sales but on building trust and connecting with consumers through core values of safety, sustainability, and lifestyle appeal. By strategically leveraging the festive season, manufacturers can navigate the challenges of a slowing market while cultivating a resilient brand presence that aligns with the aspirations of modern car buyers. This festive period has the potential to be a turning point for the auto industry, ushering in a new era of growth and innovation.

(Source: Way2News)