Consumer preference for electric vehicles has declined by 45% in India over the past two years, a new study by Grant Thornton Bharat has found.
The study, entitled Shifting Gears, questioned more than 3,500 respondents across all age groups about their vehicle purchasing preferences, and found that while the market for passenger vehicles (PV) saw a ‘strong recovery’ in full year 2024, the first half of 2025 saw sales growth pared back.
The study also found that utility vehicles and SUVs continue to thrive, growing at 13% year-on-year and currently accounting for 65% of PV sales.
Consumer preference
When asked ‘what kind of vehicle would you prefer to buy’, 34% answered petrol, 17% electric vehicle, 8% diesel and 40% hybrid.
The study found that as the preference for electric vehicles has fallen, the preference for petrol cars has increased by 55%.
This has been attributed to concerns over the charging infrastructure for electric vehicles (EVs) and a growing interest in hybrid vehicles. Hybrid vehicle have become more attractive to consumers, due to tax exemptions in certain states, which has driven further adoption of hybrids over EVs.
Although India’s EV market is expected to grow, its adoption may be slower than in other major economies due to current infrastructural and practical challenges, Grant Thornton Bharat noted.
Elsewhere, over 40% of new vehicle purchases in India are driven by upgrades, highlighting the impact of rising disposable incomes.
‘A crucial moment’
Commenting on the findings, Saket Mehra, partner and Auto & EV Industry leader, Grant Thornton Bharat, said, “The festive season is a crucial moment for the auto industry, making up for 30% to 40% of annual sales. Although the growth rate for this festive season may be muted by the high base from previous year, the industry remains optimistic that absolute sales volumes are likely to expand.
“Shifting market dynamics, such as rising consumer interest in premium models, expectations for heavy discounts, and the increasing role of digital platforms, present automakers with a unique opportunity to adapt and drive sales during this pivotal period.” Read more here.
