Technology overtakes brand in influencing India’s car-buying decisions: Report

Mumbai: Technology and features have emerged as the top considerations influencing car-purchase decisions in India, ahead of brand, as consumers increasingly expect advanced features across price segments, according to a Bain & Co report.

The finding points to a shift in purchase priorities, with service ranking third and price fourth among the top considerations listed by car buyers in a Bain survey. While India remains a price-sensitive market, access to vehicle financing and aspirations to upgrade are influencing buying decisions, the survey found.

“The tech features that come along with the brand and effectively explain the value for money that consumers are getting become a much stronger differentiator,” Rahul Mishra, partner at Bain & Co, told ET.


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Features that were once largely confined to luxury vehicles are increasingly becoming standard in mass-market cars priced between ₹15 lakh and ₹30 lakh, Mishra said. Automakers will need to ensure their offerings deliver the latest technology while retaining brand credibility and affordability, he added.

Brand loyalty, however, remains strong. The survey found that 68% of premium car buyers and 71% of mass-market buyers considered only established brands during their last purchase. New entrants will need to offer differentiated products and establish what their brand and technology stand for to enter the consumer’s consideration sets, Mishra said.

Based on an online survey of more than 12,000 automotive consumers globally in the first quarter of 2026, the report also found that nearly 80% of Indian buyers use AI during their vehicle purchase journey. Usage was particularly high among younger consumers, at around 90% for Gen Y and Gen Z, compared with about 79% among older generations.

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The buying journey continues to span digital and physical channels, with dealerships remaining important in vehicle evaluation and purchase completion.

Electric vehicles offer another opportunity for automakers. The survey found that 57% of Indian consumers were open to buying a battery electric vehicle (BEV); the share was 61% among Gen Y. Among consumers who had test-driven a BEV, 82% said they would consider buying one, compared with 66% of those who had not.

Mishra said automakers and dealers must reduce friction between a customer requesting a test drive and actually experiencing the vehicle, while using consumer data and technology to develop products suited to future demand.