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Vehicle safety overtakes car features; becomes the first criteria while purchasing a car, ET Auto

Vehicle safety overtakes car features; becomes the first criteria while purchasing a car, ET Auto




<p>This report has also highlighted several other essential elements, such as preference shifts when purchasing vehicles and automobile financing.</p>
<p>“/><figcaption class=This report has also highlighted several other essential elements, such as preference shifts when purchasing vehicles and automobile financing.

New Delhi: Indian passenger vehicle segment has observed muted sales in the first half of FY 2024-25, with SUV retaining its leading position. With the latest advancements in technology, design, and features, consumer preferences have also shifted. Now, vehicle safety is becoming the primary consideration when purchasing a car.

With booming awareness about vehicle safety through the new car safety assessment program, BNCAPit has now become a key factor, stated Grant Thornton’s report on understanding passenger vehicle market trends . 32% look for advanced safety as the primary factor, surpassing other elements such as features/designs, performance, and price when purchasing a car.

The report has more than 3,500 respondents, across age groups and occupations, stated the company.

In the past, several cars have been tested under this new program, which provides star ratings to vehicles based on their performance in crash tests. Automobiles such as Tata Nexon, Punch, Safari, and Harrier received 5-star ratings.

This report has also highlighted several other essential elements, such as preference shifts when purchasing vehicles and automobile financing.

Latest buying trends

As per the report, 40% of vehicles would like to purchase hybrids, surpassing petrol (34%), electric vehicles (17%), and diesel (8%) in the last two years. A push for hybrids is a result of tax exemptions for strong and plug-in hybrids by states such as Uttar Pradesh.

In the last two years, an inclination for hybrids and EVs (electric vehicles) have grown 55% and 45% respectively. While for hybrids and diesel, the fondness remains constant.

A shift towards premium models

More than 40% of new automobile purchases are consequent upgrades, depicting rising disposable incomes. Digital media has played an essential role from 56% to 74% in the last two years. The report further pointed out that 85% of respondents are ready to explore the idea of purchasing a high-end premium model, showcasing a growing inclination towards premiumisation.

65% of respondents are ready to buy premium models over base models infusing 10-15% more (than the base model price). However, this figure decreases with the rising difference between the base and premium models.

“With growing interest in premium models and hybrid vehiclessuggests a shift in consumer preferences, further shaping the outlook for the festive season,” stated Saket Mehra Partner and Auto & EV Industry Leader, Grant Thornton Bharat.

Social media; a first source for automobile launches

From the past two years, 74% of respondents prefer digital media (social media and car websites) reflecting dynamic consumer trends. With the escalating presence of digital media, a new digital wave is now being observed where 58% of respondents get awareness about the new launch via Social media, email/message promotion, and news. 16% through car apps/websites, 15% via print or digital advertisements, and 11% through word of mouth.

  • Published On Oct 31, 2024 at 08:38 AM IST

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