New Delhi, Oct 16 : Evolving lifestyles, technology adoption and policy reforms such as GST 2.0 are driving renewed optimism for Indian consumers this festive season, with 41 per cent of consumers planning to purchase a vehicle in the next three'four months, a report showed on Thursday.

Notably, 72 per cent of them deferred their purchase in anticipation of GST rationalisation, signalling the impact of simplified taxation and improved affordability on consumer sentiment.

According to a Grant Thornton Bharat report, the preference for hybrid vehicles is rising among consumers, with 38 per cent of them opting for hybrid cars, outpacing petrol (30 per cent) and EVs (21 per cent), signalling a clear shift in consumer preference towards transitional, fuel-efficient technologies.

The craze for sports utility vehicles (SUVs) remains high, with 64 per cent of consumers preferring SUVs. This segment has held the top spot in India's passenger vehicle (PV) market, contributing 65 per cent to total sales in FY25, up from almost 50 per cent just two years ago.

Meanwhile, the report highlighted a shift toward safety metrics as well, with 34 per cent of buyers saying that they are prioritising safety over price and mileage.

This reflects a maturing market influenced by stricter regulations, crash test awareness and tech-enabled safety features.

'This festive season is not just a sales window; it signals deeper shifts in consumer behaviour. The growing preference for hybrids, rising safety consciousness, and willingness to pay for premium features reflect a more informed and aspirational buyer," said Saket Mehra, Partner and Automotive Industry Leader, Grant Thornton Bharat.

With GST reforms unlocking affordability and digital channels reshaping discovery, OEMs have a unique opportunity to reimagine their value proposition for India's next phase of mobility, Mehra added.

According to the report, more than 35 per cent of buyers are willing to pay more for high-end variants, and 65 per cent have mentioned a 10'15 per cent price premium is acceptable, highlighting rising aspirations and demand for feature-rich vehicles.

Additionally, 52 per cent of consumers use both online and offline channels before buying, with social media (selected by 35 per cent of respondents) and car apps (selected by 23 per cent of respondents) leading the discovery phase.

"The reduction of GST on small cars from 28 per cent to 18 per cent could lower acquisition costs by up to Rs 1 lakh, particularly boosting demand in Tier 2 and Tier 3 cities," the report noted.

/IANS