· SUV enthusiasts have an average income of INR 15 lakh and more annually
· Increase in number of people inclining towards EVs and Hybrid
· Youngsters/millennials favour personal vehicles for commuting; a shift from car-sharing post COVID-19 outbreak
· Pent-up demand likely to slip in to next year
As the demand for new vehicles continues to increase, people are now looking at discounts that are usually offered at this time of the year. According to the survey data analysed by Grant Thornton Bharat, around 6 in 10 people wait for discounts if they plan to buy a vehicle. As many as 87% respondents expect discounts to be given this festive season. At least half of them agreed that they may be willing to exceed their budget if they get heavy discounts on high-end models. 94% buyers would also check multiple dealerships and look for better and more competitive discounts.
“Festive discounts are among the prime determinants of vehicle sales performance in India. Even though most consumers may delay their purchase until next year, lucrative discounts and deals may inspire them to buy vehicles this year. Given the value-focused Indian consumer, OEMs and dealers may offer discounts on value added services such as extended warranty and add-on's but may remain reluctant in offering full-fledge discounts for their flagship models,” says Saket Mehra, Parnter and Auto Sector Leader, Grant Thornton Bharat.
Among passenger vehicles, trend of utility vehicle (UV) preference over sedans persists this year as 51% respondents expect to buy the former. Furthermore, according to the survey, India’s readiness for electric vehicles (EVs) adoption has also seen a boost. Around 21% of respondents indicated their willingness to buy EVs and at the same time 24% said they would prefer buying a hybrid vehicle.