The Indian automotive market is entering a software-first era, with 95% of consumers willing to pay for software-defined vehicle (SDV) features such as safety, security and continuous vehicle health reporting, according to Deloitte’s India Global Automotive Consumer Study 2026.
India excels in its readiness for next-generation mobility, with 81% of consumers finding SDV helpful and 84% willing to adopt AI-powered customization. The findings signal a tectonic shift in how Indian buyers define vehicle value – from hardware-led ownership to connected, upgradeable and service-driven digital mobility. Strong openness to smart features, subscription-ready services and evolving vehicle experiences make India one of the most promising global markets for software-led automotive transformation.
Safety, security and data trust take center stage
Safety, security and trust are becoming the defining pillars of connected mobile adoption in India. Consumers prioritize protection and monitoring features over convenience digital features, increasing their willingness to pay for SDV-enabled services.
At the same time, concerns about data sharing in connected vehicles are among the strongest in the world in India. About 73% of consumers are concerned about personal device data, while 72% are concerned about vehicle location data. These findings reflect rising expectations for transparency, privacy protection and responsible data governance.
“India is entering a new era of mobility shaped by intelligence, sustainability and systems innovation. Going forward, leadership in mobility will not only depend on the scale of vehicle production but also on the strength of the digital, energy and trust ecosystem around the vehicle. With its scale, technological depth and rapidly expanding innovation landscape, India has the potential to help shape the global direction of software-led, safe and sustainable transportation,” said Rajat Mahajan, partner and automotive leader, Deloitte India.
Physical channels remain critical
Despite the rapid pace of digital transformation, physical engagement channels still play a critical role. Nearly 58% of consumers place the highest level of trust in dealers, highlighting the need to integrate the physical digital ownership journey as vehicles become more software-centric. India also reported the highest reliance on authorized dealers for vehicle repairs.
The research highlights changes in consumer expectations in terms of brand choice, purchasing behavior and engagement patterns.
Other emerging consumer and market trends
Purchase intent and engagement
The willingness to switch brands is still as high as 70%, of which 38% of consumers have switched brands in pursuit of new features and advanced technologies.
Some 79% of consumers expressed interest in purchasing insurance directly from the manufacturer, indicating a growing acceptance of direct-to-consumer vehicle models.
Digital research now dominates the buying process, with social media platforms and manufacturer websites becoming primary discovery and evaluation channels.
Powertrain transition
Internal combustion engine (ICE) vehicles continue to dominate next purchase intentions, while hybrid vehicles are becoming the transition technology of choice.
Interest in battery electric vehicles (BEVs) remains evident, with overall EV adoption intentions rising slightly.
Electric vehicle adoption dynamics
The adoption of electric vehicles in India is advancing steadily, with the intention of stabilizing rather than accelerating. Ecosystem constraints continue to influence decisions, including concerns about public charging infrastructure (43%), charging times (41%), and battery safety and lifecycle issues (38%).
The strong preference for dedicated charging and the high sensitivity to the cost of public charging highlight the importance of infrastructure readiness. At the same time, the appeal of electric vehicles remains about improved lifestyle experiences and lower operating costs.
Affordability and Price Expectations
More than three-quarters of consumers are willing to spend up to INR 2.5 million to buy their next car, while more than half are ready to spend up to INR 1.5 million.
The most significant growth in preference is in the entry-level INR 5 to 10 lakh price range, underscoring the continued demand for convenient and feature-rich mobility solutions.
Payment preferences
UPI/QR remains the preferred method of payment for public charges, reflecting the growing influence of India’s digital public infrastructure on travel behaviour.
Overall, the findings suggest that India’s mobility development will be defined by software-led intelligence, safety-focused digital services and value-driven electrification. As digital trust, ecosystem readiness and affordability converge, India is poised to become a key global market in the transformation towards connected, smart and evolving transportation.
