Technology Overtakes Brand Loyalty in India’s Car-Buying Decisions: Report

Technology and advanced vehicle features are increasingly influencing car-buying decisions in India, moving ahead of brand considerations, according to a report by Bain & Company published by The Economic Times.

The survey found that technology and features were the leading considerations for Indian car buyers, followed by brand, service and price. The findings indicate that consumers increasingly expect advanced features and better value across vehicle price segments.

Brand loyalty nevertheless remains significant. According to the survey, 68% of premium car buyers and 71% of mass-market buyers considered only established brands during their most recent vehicle purchase. This suggests that new manufacturers must build brand credibility while offering features that clearly differentiate their products.

The report also highlights the growing role of artificial intelligence in the car-buying journey. Nearly 80% of Indian respondents said they used AI during the purchase process. Adoption was particularly high among younger consumers, with around 90% of Generation Y and Generation Z buyers using AI, compared with approximately 79% among older generations.

Digital tools are increasingly helping consumers research models, compare specifications and shortlist vehicles. However, physical dealerships continue to play an important role in evaluating cars, taking test drives and completing purchases.

Electric vehicles are another area of growing consumer interest. The survey found that 57% of Indian consumers were open to buying a battery electric vehicle, rising to 61% among Generation Y respondents. Among people who had test-driven an electric vehicle, 82% said they would consider buying one, compared with 66% of those who had not taken a test drive.

The findings suggest that automakers need to combine useful technology, competitive pricing and trusted branding to attract buyers. Manufacturers and dealerships may also need to improve their digital presence so that consumers can easily discover, compare and experience vehicles before making a purchase.

As vehicle technology becomes more widely available across price categories, the ability to demonstrate practical benefits and deliver value could become an increasingly important competitive advantage in India's automobile market.