India car buying technology now outranks brand

India car buying technology has emerged as the top consideration influencing car purchase decisions, ahead of brand, according to a new Bain & Co report. Technology and features now outrank brand in how Indian buyers choose a car, with service third and price fourth, the report says. The findings were reported by ET.

While India remains price-sensitive, access to vehicle financing and aspirations to upgrade are influencing buying decisions, the report found. Wider access to vehicle financing has put better-equipped cars within reach of more buyers, while the aspiration to upgrade keeps shaping what buyers choose. Features once confined to luxury vehicles are increasingly becoming standard for mass market car buyers shopping in the Rs 15 lakh to Rs 30 lakh range. The India car buying technology finding puts pressure on automakers to offer the latest technology while keeping prices affordable and retaining brand credibility. Price still matters, but the ranking puts technology ahead of it.

India car buying technology tops the rankings

Bain & Co partner Rahul Mishra told ET: "The tech features that come along with the brand and effectively explain the value for money that consumers are getting become a much stronger differentiator." The comment captures the India car buying technology shift. Buyers now judge a car by what its technology does for them, not just by the badge on it.

Brand loyalty remains strong even as India car buying technology leads the buying decision. The survey found 68 per cent of premium car buyers and 71 per cent of mass market car buyers considered only established brands during their last purchase. The loyalty figures sit alongside the technology trend. Buyers shortlist established brands, then decide on features. The 68 per cent and 71 per cent figures show buyers use brand as a filter before technology decides the purchase.

India car buying technology and AI use

The purchase journey has also gone deeply digital. Nearly 80 per cent of Indian buyers use AI during their vehicle purchase journey, the survey found. Among Gen Y car buyers and Gen Z, the figure is around 90 per cent, compared with about 79 per cent among older generations. For Gen Y car buyers, the purchase journey starts online. The figures underline how widespread AI car buying now is, and the gap between younger and older buyers is the widest in the survey's digital findings. Younger buyers research and compare cars online before they ever visit a showroom, and AI car buying tools shape the shortlist. The 11-point gap between Gen Y and Gen Z buyers and older generations is the widest in the survey's digital findings.

The India car buying technology figures are based on an online survey of more than 12,000 automotive consumers globally, conducted in the first quarter of 2026.

What automakers must do

Automakers now need offerings with the latest technology that also retain brand credibility and affordability, the report says. The India car buying technology trend raises the bar for mass market models, where features once limited to luxury cars are becoming expected standard equipment. For mass market models, that means features developed for luxury cars must arrive at prices buyers can afford, without weakening the brand's standing. The report positions technology as the main way brands can stand apart in a crowded market. Car purchase decisions increasingly turn on what the car can do, not only on whose badge it carries.

The report does not forecast sales. Its message for the industry is that India car buying technology has moved from a nice extra to the deciding factor in car purchase decisions. Service, which ranks third, and price, fourth, still shape the final decision after technology and brand. For automakers, the takeaway is that product planning now starts with the technology list.