Study: 95 percent Of Indian Cay Buyers Open To Paying For Software Defined Vehicle

India's automotive market is rapidly transitioning toward a software-first future, with most consumers valuing digital capabilities as key components of vehicle ownership. According to the 2026 Deloitte Global Automotive Consumer Study, in India, 95 percent of Indian buyers are willing to pay for in-car technologies such as safety, security, and continuous vehicle-health reporting, features that define the emerging Software-Defined Vehicle (SDV) era.

The study suggests a growing shift in how Indian consumers perceive vehicle value, moving beyond traditional mechanical appeal to connected, upgradeable, and service-driven experiences. Around 81 percent of respondents consider SDVs helpful, while 84 percent are open to AI-based customisation, showing strong readiness for intelligent and adaptive vehicle platforms.

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Safety, security, and trust remain central to this transformation. Most buyers prioritise protective functions and monitoring tools over purely convenience-led features. At the same time, concerns about data privacy are pronounced, with 73 percent worried about sharing personal device data and 72 percent about disclosing location data. This growing awareness highlights the need for transparent and responsible data governance as connected mobility expands.

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While digital adoption accelerates, physical channels such as dealerships continue to play a critical role. Nearly 58 percent of consumers trust dealers the most, and authorised service centres remain the top choice for maintenance, reflecting the need for a balanced physical-digital ownership journey.

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The study also reveals significant shifts in consumer behaviour. Brand-switching intent stands at 70 percent, with 38 percent already having moved to brands offering better technology. Nearly 79 percent of buyers are interested in purchasing insurance directly from carmakers, and digital platforms, particularly social media and manufacturer websites, dominate research and evaluation.

In powertrain choices, internal combustion engines continue to lead purchase intent, though hybrids are seen as the preferred transition option. EV adoption remains steady, limited by concerns around public charging networks, charging duration, and battery safety.

Overall, Deloitte's findings indicate that India's automotive evolution will be shaped by software intelligence, safety-centric innovation, and affordability-driven electrification, marking a pivotal step toward connected and trust-based mobility.