What kind of cars do Indians invest money in? Changing preferences from SUV to CNG and EV

Car buyers in India are no longer limited to low-priced vehicles. Many customers are buying with better features by spending a little more budget. At the same time, people are increasingly shifting towards CNG and electric cars instead of petrol. According to Deloitte India’s auto sector report Wheelwatch, the highest growth in sales of cars priced between Rs 12 lakh and Rs 20 lakh was recorded in the second quarter of FY27.

Demand for cars priced between 12-20 lakhs has increased

According to a Deloitte report, sales of cars priced between Rs 12 lakh and Rs 20 lakh increased by 33.6 per cent year-on-year in the second quarter of FY27. The market share of this category has also increased by 1.2 percent. On the other hand, sales of cars priced between Rs 7 lakh and Rs 12 lakh were down by 0.4 percent. Vehicles in this price range account for almost half of the total sales.

According to the report, this change in consumer preferences has been seen after the changes in GST 2.0. During this period, the wholesale sales of passenger vehicles increased by 30.7 percent to 1.4 lakh units. This increase was 25.9 percent in the first quarter. Sales of small and compact SUVs grew by around 31 percent and 53.1 percent, respectively. However, retail sales grew by only 22.2 percent.

CNG and EV share increased as compared to petrol

Changes are also being seen in the fuel options of the car. The share of petrol cars declined by 2.8 per cent to 42.6 per cent in the second quarter of FY27. Electric car registrations have almost doubled to 97,000 units. EV market share also increased to 6.7 percent from 6 percent in the first quarter.

Year-on-year registrations of CNG cars have increased by nearly 50 percent to 2.33 lakh units. CNG cars sold more than petrol cars in Gujarat, Haryana, Maharashtra and Rajasthan. According to dealers, lower running costs and some customers’ concerns about E20 fuel could also be the reason for the change.

The market is changing due to the growing demand for SUVs.

Compact models have also strengthened their hold in the SUV segment. Their share has increased by 3.3 percent. Due to better technology and features, customers are now getting premium vehicle experience even in small SUVs. On the other hand, the share of mid-size SUVs declined by 1.9 percent. The report also said that some consumers are buying older premium brand cars instead of newer mid-size SUVs.

The stock of vehicles at the dealers increased

The distinction between wholesale and retail sales of cars is also a matter of concern. Dealers had 33-35 days of stock at the end of July, which increased to 43-45 days by the end of September.

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