Car buyers ready to pay a premium for next purchase
Car buyers are ready to shell out a premium for their next purchase despite inflationary pressures, according to sales figures, experiences of original equipment makers (OEM) and consumer surveys.
Even as the share of sales from the entry level segment dwindles and those of the premium segment rises, OEMs are reporting higher sales in top level variants that are laden with features.
An automobile consumer study too affirms these findings even as the Indian automobile market matures, moving away from small cars to SUVs which now comprise 40 per cent of passenger vehicle sales.
Deloitte’s 2023 Global Automotive Consumer Study (GACS) indicates that in India, despite the fears of inflation, consumers are opting to pay a premium to purchase their next vehicle.
According to the study, “vehicle intenders in the price bracket of Rs 10–25 lakh were around 47 per cent. For Rs 10 lakh and below, these were 28 per cent. About 57 per cent intenders were willing to purchase electric vehicles (EVs) in the Rs 10–25 lakh range and 20 per cent in the range of Rs 10 lakh and below”.
There is a clear shift in an Indian consumer’s buying pattern, where an average consumer is prioritising premiumness over cost.
Traditionally, the Indian consumer has been cost conscious and cost versus mileage was the most important parameter for vehicle purchase, said the study.