‘Kitna deti hai?’ is no longer enough as Indian car buyers start doing the maths beyond mileage and EMI

The Indian car buyer is quietly rewriting one of the industry’s oldest rules. For decades, affordability was measured largely by vehicle price, monthly EMI, and, above all, the answer to a familiar question—“Kitna deti hai?” or “How much does it give?”. A car’s fuel economy was often the decisive factor in its purchasing decision. That equation is now changing. Buyers are increasingly comparing

not just the price of a car, but what it will cost to own over the years—from fuel or electricity bills, and maintenance to insurance, financing costs, and eventual resale value.

The shift is being driven by an explosion of choice. Petrol, diesel, CNG, hybrid, and electric vehicles are now chasing the same consumer cohort—each offering a varied mix of upfront price and long-term costs.

The change is forcing car buyers to think differently, and automakers to reconsider how they define, price, and sell affordability.

“The definition of affordability is broadening,” said Ravi Bhatia, president, Jato Dynamics. “Purchase price and EMI remain important, but powertrain choice also changes the costs that follow the purchase; energy, insurance, maintenance and eventually resale value. Consumers therefore need to compare not only what a vehicle costs to buy, but what it may cost to own.”

The shift comes as India’s passenger vehicle market moves beyond a largely petrol-dominated choice set.

CNG, hybrid, and electric vehicles together accounted for nearly 41% of passenger vehicle retail sales in July, underlining the growing relevance of alternative powertrains.

For buyers, that wider choice is spawning a new set of tradeoffs.

A CNG vehicle may require a higher initial investment but offers lower running costs. A hybrid may command a premium but delivers fuel savings while an EV brings a different ownership calculation altogether. The upfront price gap itself is becoming part of a bigger decision.

Jato’s analysis of 25 mass-market models available in both petrol and CNG variants found a median difference of about 1.08 lakh between their minimum average retail prices. Automakers say the shift is visible across customer segments, although the priorities differ. “There is no one type of customer,” said a senior executive at a leading carmaker.

Rural buyers continue to focus mostly on acquisition cost, with running expenses being a key factor. Urban consumers, however, are increasingly evaluating the broader economics of ownership, including fuel or electricity costs, maintenance, and expected resale value before selecting a car.

The executive said car buyers are also expanding their definition of value. Technology, features, and the overall ownership experience are increasingly becoming part of the affordability conversation alongside price.

Dealers said this transformation is getting reflected in the questions customers ask before making a purchase. “Customers are increasingly asking, ‘What’s in it for me?’ before making a purchase,” said Vinkesh Gulati, a leading automobile dealer and former president of the Federation of Automobile Dealers Associations.