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41 Percent of Indians Plan Vehicle Purchase This Festive Season as GST 2.0 Boosts Affordability - Grant Thornton Bharat Survey
Grant Thornton Bharat’s survey reveals that 41% of consumers intend to purchase vehicles within the next few months, buoyed by improved confidence from recent tax reforms. A significant shift towards hybrid vehicles is noted, with 38% preferring them over petrol and electric options. Safety features are prioritized by 34% of respondents, who are also willing to pay more for higher variants. The report highlights the influence of online channels in the purchasing process and outlines the positive impact of GST reforms on vehicle affordability and demand.
Keshav Rajput
Updated Oct 17, 2025, 08:02 AM IST
41 Percent of Indians Plan Vehicle Purchase This Festive Season as GST 2.0 Boosts Affordability: Grant Thornton Bharat Survey
Grant Thornton Bharat’s latest consumer survey, ‘Festive Drive: What Consumers Want in Their Next Ride’, finds that 41% of respondents plan to buy a vehicle in the next three to four months. The study, which covered over 2,800 consumers across cities and age groups, points to higher confidence among buyers driven by recent tax reforms and changing mobility choices.
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According to the report, 72% of respondents had postponed vehicle purchases earlier this year, waiting for GST rationalisation. The introduction of GST 2.0 has revived sentiment by improving affordability and simplifying taxation.
Shift Toward Hybrid and SUV Models
The survey shows a change in consumer preference, with 38% of respondents showing interest in hybrid vehicles - higher than petrol (30%) and electric (21%) options. SUVs remain the main choice, preferred by 64% of participants.
Safety and Premium Features Take Priority
More buyers are now focusing on safety when choosing a vehicle. About 34% of respondents said safety matters more to them than price or mileage. Nearly one-third of consumers are ready to spend extra for higher variants and around 65% said they would accept a 10 to 15% price increase for better features and added comfort.
Online Discovery Influences Buying Decisions
The survey shows that 52% of respondents use a mix of online and offline channels before buying. Social media and car apps are used during the discovery stage by 35% and 23% of respondents, respectively.
GST 2.0 Impact on Affordability
The report notes that the reduction of GST on small cars from 28% to 18% can reduce acquisition costs by up to Rs 1 lakh. This is expected to increase demand, especially in Tier 2 and Tier 3 markets.
During Navratri 2025, passenger vehicle retail sales grew by 34%, supported by affordability improvements, new model launches and upgrade demand. Stable interest rates and steady incomes are also supporting this trend.
Saket Mehra, Partner and Automotive Industry Leader, Grant Thornton Bharat commented on the trends saying, “This festive season is not just a sales window, it signals deeper shifts in consumer behaviour. The growing preference for hybrids, rising safety consciousness, and willingness to pay for premium features reflect a more informed and aspirational buyer. With GST reforms unlocking affordability and digital channels reshaping discovery, OEMs have a unique opportunity to reimagine their value proposition for India’s next phase of mobility.”
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