Automobile manufacturers may face tough times ahead as brand loyalty continues to erode among consumers. According to Deloitte’s 2025 Global Automotive Consumer Study, a striking 72% of car buyers are open to switching brands, reflecting a change in consumer behaviour driven by evolving expectations, technological advancements, and environmental concerns.
The study highlights how in the auto sector traditional brand allegiances are being replaced by a sharper focus on innovation, quality, and value. A key factor influencing this shift is the growing demand for modern features and advanced in-car technologies, with 35% of respondents citing this as their main reason for considering a brand change. Product quality, particularly vehicle safety, remains paramount for 62% of potential buyers, underscoring that while tech matters, trust in build and reliability is still crucial.
Unlike in mature markets such as Germany or Japan where price heavily dictates buying decisions, Indian consumers are increasingly driven by the overall experience and performance of the vehicle. That said, affordability remains a limiting factor, with 75% of respondents indicating a willingness to spend under Rs 25 lakh on their next purchase. Interestingly, many within this group are also willing to stretch their budget for electric vehicles (EVs), signaling a rising awareness and preference for cleaner mobility solutions.
Yet, significant barriers remain in the EV adoption journey. Concerns about high initial costs, limited driving range, and inadequate charging infrastructure continue to hold back wider acceptance. As Rajat Mahajan, partner and automotive sector leader at Deloitte India, notes, while consumer interest in EVs is strong due to their sustainability and long-term cost benefits, practical concerns around battery life and accessibility must be addressed for the segment to grow meaningfully.
Despite the EV buzz, the study also reveals a resurgence in interest in traditional internal combustion engine (ICE) vehicles. Around 54% of respondents intend to buy petrol or diesel-powered cars in their next purchase cycle, up from 49% in 2024, suggesting that the shift to EVs might be more gradual than previously anticipated.
The report further captures a generational change in mobility trends. Among younger consumers aged 18 to 34, nearly 70% are open to alternatives to car ownership, such as Mobility-as-a-Service (MaaS), prioritising flexibility and cost-effectiveness over traditional ownership models. Simultaneously, 76% of consumers express a preference for buying directly from manufacturers, indicating a shift towards digital-first, OEM-driven retail models that could redefine the traditional dealership landscape.