“Hybrids are being preferred, but EV interest remains”: Deloitte India

The 2026 Deloitte Global Automotive Consumer Study is out, and its India findings show a car market that is growing fast but also changing in meaningful ways. Buyers remain value-conscious, cautious about full electrification, and increasingly drawn to hybrids, connected features and digital experiences. As expectations around charging, software and ownership evolve, Rajat Mahajan, Partner and Automotive Sector Leader at Deloitte India, breaks down what it all means in an exclusive interaction with HT Auto.

Q: The report states that petrol and diesel cars are still the top choice among Indian buyers, and hybrids are growing faster than full EVs. Does this mean Indian buyers are still cautious about going fully electric? And will the transition towards electrification be more hybrid-led?

Rajat Mahajan: If you look at the trend from 2023 onwards, interest in pure battery electric vehicles was around 8%. It moved to 10%, then back to 8%, and this year again it is 10%. So I would say there has been no significant shift over the last two to three years. The interest is there, but people are cautious.

At the same time, ICE preference increased last year but has tapered slightly this year. So yes, hybrids are being preferred at this point in time. The interest in battery electric vehicles remains, but consumers are being a little cautious.

Q: Last year, concern for the environment was the top reason to buy an electric vehicle. This year, better lifestyle experience and lower running costs are leading. What does this shift tell you about how Indian buyers now see electric vehicles?

Rajat Mahajan: We were also surprised because it is quite a drastic change. Last year, 63% cited concern for the environment. Now, it is not that environmental concern has gone down, but it is not featuring in the top two reasons.

What this means, as per our understanding, is that EV adoption is no longer restricted to a small segment of the population, such as affluent buyers or younger consumers with a strong environmental inclination. It may be a tipping point. EVs are now being experienced by more mainstream consumers who were regular ICE users. As a result, they are talking more about lifestyle experiences and lower fuel costs. That would be our interpretation.

Q: Charging concerns, especially public charging infrastructure and charging time, are the biggest worries for EV buyers. According to you, what needs to improve to build more confidence when it comes to charging?

Rajat Mahajan: If you look at the data, 62% of people want to charge at home and another 18% want to charge at work. Together, that makes 80%. This shows that people want certainty in charging at places where they spend most of their time, either at home or at work. That is one big takeaway.

In terms of improving infrastructure, public charging stations are important because they support adoption. But from a utility perspective, OEMs, government bodies, real estate developers, and energy companies need to think about how to provide charging access at home and office locations.

In many new buildings in tier-one cities, charging spaces are available. However, retrofitting chargers in older buildings has not happened at scale. That could be one of the reasons why some consumers are hesitant to buy EVs.

Q: A large number of buyers, around 70%, say they are open to switching brands for their next car. Why do you think brand loyalty remains relatively fluid in India?

Rajat Mahajan: Compared to earlier, consumers now have more options. If you go back 10 to 15 years, buyers would typically have three or four cars in their consideration set. Now that number has doubled.

Within the same price points, there are more choices available. Secondly, features play a big role. Indian customers like to have better features in their cars, and OEMs are offering new features at affordable prices. These two reasons: more options and feature-driven decisions, explain why brand switching remains high.

Q: Many consumers are willing to pay for connected features, especially safety features such as ADAS. However, your report also says they are concerned about sharing personal data. What should carmakers do to reassure customers about data privacy?

Rajat Mahajan: That’s a great observation. The best approach is transparency. Just like we see permission settings on mobile apps, vehicles should clearly communicate what data is being collected and why.

If every piece of data being pulled is disclosed transparently, that should address concerns. At the same time, Indians are willing to share data because they want to experience AI, software-defined vehicle features, and new use cases. So transparency is key.

Q: Consumers seem open to software features, subscriptions, and OTA updates. Do you think cars are becoming more like smartphones in how people view them today, especially in urban areas?

Rajat Mahajan: From our survey, 61% of respondents said the in-vehicle ecosystem is more important than their smartphone. So I would say people are leapfrogging smartphones, they want in the car what they get on their smartphone and more.

Cars becoming smartphones is one way to look at it, but consumers expect more than that. If vehicles provide better connectivity and AI use cases beyond what smartphones offer, consumers are likely to retain their cars for longer.

In fact, we found that consumers are willing to keep their vehicles two to three years longer if OTA updates enhance their experience. So all these data points need to be looked at together.