I still remember the days when buying a family car was an exercise in asking three questions - ‘Kitna deti hai?’ (What is the mileage?) , 'Kitne ki padegi?' (What is the price?) and “Service center kitna paas hai?” (How close is the service center!)? A hatchback which delivers 20 km/l and fits under Rs 6 Lakh was a hot seller. But the scenario in India has changed dramatically today. 

While the fuel efficiency and the first level economics of the purchase still matter, it's no longer the deciding factor. I've interacted with my friends, colleagues, and family about their car buying preferences recently and found that Indian car buyers have now imbibed the value buyer's mentality, and want all the tech toys they can imagine in their cars. Here's what Indian buyers now want in their cars, apart from the age-old concerns of mileage and money:

1. Safety First!

While features used to be the talk of the town, safety has now stolen the limelight with its discussions filling up forums and showrooms even before test drives. To put it simply: a few years ago, safety was something we only thought about after an accident happened. We used to ask, "If I hit something, will this car hold up?"

Today, car safety is split into two major categories that every buyer should know: Passive Safety (what protects you during a crash) and Active Safety (technology that stops the crash from happening in the first place).

1. Passive Safety

Crash Test Ratings (Bharat NCAP & Global NCAP): 

Picture an independent body crashing a new car model with crash-test dummies inside a wall at high speeds. They calculate the damage to the vehicle's cabin and the dummies' bodies, then give it a 1-5 star rating based on that information. Nowadays, many buyers feel as reassured by a new car's five-star safety rating as they would by a five-star hotel review.

Six Airbags: 

An airbag is essentially a fabric that inflates almost instantly to prevent your head and chest from slamming into something as hard as metal or glass. Early models only featured one or two mounted at the front, but contemporary family-friendly vehicles use six safety bags at the front and the sides to protect every vehicle occupant.
    

2. Active Safety: The Co-Pilot Watching the Road

Active safety features involve the use of sensors, cameras, and radars to constantly watch the road and make decisions at a faster rate than a human could manage alone.

Electronic Stability Control (ESC): 

When driving on a wet road with bad traction, if the driver has to make a sudden turn to avoid a dog or a hole, the car can spin out of control on older models. However, ESC has the ability to apply brakes to certain wheels to keep the car from sliding.

ADAS (Advanced Driver Assistance Systems): 

You could think of these systems as an additional pair of eyes to watch the road and traffic without ever tiring.

Automatic Emergency Braking: If the car ahead of you slams on its brakes and you don't notice in time, the car detects the obstacle and hits the brakes for you.

Lane-keep Assist: If you accidentally drift out of your lane on a highway because you were distracted, the steering wheel gently nudges the car back into the center of the lane.

Blind Spot Warning: Small sensors are placed on the sides of the car to watch the blind spots around the vehicle. If there is a car trying to move into the space next to your car, it will notify the driver by displaying a blinking light in the rear-view mirror.

2. Tech Toys & Connecting Car Entertainment

When you enter the cabin of an Indian SUV, the first thing that catches your eye is the number of screens - the Indian buyer wants his car to be an extension of his home and office today. Features such as Wireless Apple CarPlay and Android Auto are now a must, not a nice-to-have. 

So are the convenience features such as the ability to remotely start the engine, cool down the car or locate it via an app. Ventilated seats (a lifesaver in Indian heat), ambient lighting, wireless charging pads and 360-degree cameras are also important differentiating factors. Cars that offer OTA (Over-The-Air) updates for infotainment and driving assistance systems are also a big hit with tech-savvy Indian buyers.

3. Value Premiumization i.e. More Feature-led Purchases

Did you know that the buyer pool for entry-level hatchbacks is fast migrating to compact and mid-size SUVs? Indian buyers are now seeking more value for their money in the form of comfort and technology. While it used to be all about the lowest possible price-point, Indian buyers now look to buy the most feature-laden vehicle within their budget. This willingness to 'premiumize' has also meant that buyers are willing to spend an extra 2-3 Lakh for features such as:

  • Panoramic sunroof
  • Premium audio systems (MSH, Sony etc.)
  • Leatherette upholstery
  • Sleek exterior design (LED light bars, aggressive front grilles etc.)

4. Alternate Financing Options

The way Indian buyers purchase cars has changed fundamentally. Gone are the days when you had to save up for 5 long years just to buy a basic family sedan. With evolved financing options such as 7-8 year car loans, balloon payment schemes and step-up EMI options, Indian buyers are now eyeing higher tranches of vehicles that they previously would not have considered. Subscription-based car ownership plans also have a certain appeal to the Gen-Y and Millennial buyer, who may not want to be tied down to a long-term possession plan, and may want to upgrade their cars every 3 years as their career moves on. The digitization of the car buying process has also helped - from configuration, doorstep test drive to doorstep loan approval, Indian buyers want a seamless experience similar to any online purchase.

5. Petrol, Hybrid, EV or CNG?

Remember the good old days when the only choice between Diesel vs Petrol? Indian car buyers now ponder over a gamut of powertrain choices:

EVs: Range anxiety is a thing of the past, and Indian buyers are gravitating towards EVs for their low cost of ownership and hushed performance.

Strong Hybrids: For the buyer that wants the frugality of an EV without range anxiety, hybrids have found immense favour.

Factory-fitted CNG: CNG was once associated with the lowly Indica, but today Indian buyers are choosing between petrol and CNG engines for their budget-friendliness. Vehicles with dual-cylinder CNG technology (to retain boot space) are also in vogue among eco-conscious Indian buyers.

Confused which car to buy? Check out this comparison on EV vs. Hybrid vs. Petrol cars!

The Indian car buyer is a value-driven customer who demands his pound of technology and comfort in the vehicle of his choice. As an Indian car buyer myself, I feel that the changing buyer preferences are reflective of our lifestyle and the changing dynamics around us (congestion, long-distance travel). Car makers that can understand the Indian buyer's need for value and comfort will rule the roost in India. And yes, we still want our cars to give us good mileage and be reasonably priced!