Festive Passenger Vehicle Pulse 2026: 32.9% of prospective buyers remain undecided ahead of the festive season

Demand momentum remains intact, but converting increasingly informed and selective buyers will be critical for automakers.

India's festive passenger vehicle market is heading into the season with a sizeable conversion opportunity, with 32.9% of prospective buyers still evaluating their options despite healthy purchase intent, according to Grant Thornton Bharat's Festive Drive: What Consumers Want in Their Next Ride, based on its annual Festive Passenger Vehicle Pulse 2026 survey. The findings suggest consumers are increasingly weighing factors such as fuel technology, long-term ownership value, sustainability and future-readiness before committing to a purchase. 

The study captures insights from more than 1,300 consumers and over 500 dealers across India. Covering 16 themes across the passenger vehicle ecosystem, the report provides a comprehensive view of the factors influencing festive-season demand and how consumer priorities have evolved compared to last year. 

While festive demand remains resilient, the path to purchase is becoming increasingly nuanced. Nearly one-fourth (24.9%) of respondents identified themselves as likely or definite buyers this festive season, while a significantly larger share remains in the consideration stage, presenting a substantial opportunity for automakers and dealers to convert intent into sales through the festive period. 

For automakers and dealers, the challenge is no longer generating interest but converting it into purchases. The sizeable pool of undecided buyers highlights a market where consumers are spending more time researching options, comparing ownership costs and evaluating emerging mobility choices before making a commitment.

This shift is evident in fuel preferences, with Hybrid vehicles remain the preferred powertrain choice, with 37.0% of respondents favouring hybrids compared with 22.8% for electric vehicles, underscoring consumers' inclination towards solutions that balance efficiency, lower emissions and ownership confidence. The report also found that 70% of respondents consider sustainability either extremely or somewhat important when choosing their next vehicle, highlighting the increasing role of environmental considerations in purchase decisions. 

At the same time, the study underscores the importance of awareness and confidence as India's mobility ecosystem evolves. More than four in ten respondents (40.9%) expressed concerns regarding engine performance and maintenance implications associated with E20-compatible vehicles, while only 32.6% reported awareness of upcoming CAFE Phase III regulations, indicating a need for greater consumer education around the implications of the country's regulatory and fuel transition agenda. 

The report also highlights continued consumer preference for SUVs, with 58.3% of respondents favouring SUVs and crossovers, although growing interest in hatchbacks points to a market balancing aspiration with affordability and ownership value. Across segments, safety emerged as the single most important purchase consideration, cited by 57.0% of respondents, followed by fuel efficiency (51.6%) and price (47.2%).

Taken together, the findings suggest that festive demand remains healthy, but conversion will increasingly depend on how effectively manufacturers and dealers communicate a compelling ownership proposition encompassing technology, efficiency, affordability and future-readiness. 

India's passenger vehicle market enters the festive season with demand momentum intact, but conversion will increasingly determine success. Consumers today are better informed, more selective and evaluating vehicles through the lens of total ownership value rather than upfront price alone. The growing importance of fuel choices, sustainability, safety and future-readiness signals a maturing market for India Inc, where differentiation will depend not just on product innovation but also on customer education, transparency and ownership experience. The opportunity for the industry is to turn a large pool of interested buyers into confident buyers.

Saket Mehra
Partner and Auto & EV Industry Leader, Grant Thornton Bharat

Key findings

• 58.3% of respondents prefer SUVs and crossovers, reflecting the segment's continued dominance in the passenger vehicle market.
• 70% consider sustainability either extremely or somewhat important when choosing their next vehicle.
• Safety (57.0%), fuel efficiency (51.6%) and price (47.2%) are the top factors influencing vehicle purchase decisions.
• Only 32.6% of respondents are aware of upcoming CAFE Phase III regulations, highlighting a significant awareness gap around regulatory changes.
• Dealer sentiment remains positive, with strong enquiry levels indicating healthy festive demand, although conversion remains the key watchpoint for the season.

For India Inc, the next phase of growth in the passenger vehicle market will depend on how effectively the industry adapts to changing consumer expectations. Investments in powertrain innovation, accessible technology, transparent ownership costs and after-sales experience will be critical to strengthening competitiveness and shaping the next phase of India's automotive growth.

Methodology

The analysis combines insights from more than 1,300 consumers and over 500 dealers across India to assess festive-season demand, purchase intent and emerging mobility preferences in the passenger vehicle market. Findings were benchmarked against comparable responses from the 2025 edition where question sets aligned, and insights were triangulated across consumer, dealer and year-on-year datasets to identify consistent trends and strengthen the final analysis.

The press release first appeared in the Fortune India on 4 November 2026.