AI revolutionizes India's car-buying journey - Bain & Company survey

NEW DELHI—October 2026: New technologies, including AI, are changing how consumers research and choose cars around the globe. Brand loyalty is decreasing, and price continues to play a powerful role in purchasing decisions in the US and Europe, but less so for Chinese buyers, while technology and brand are emerging as key purchase considerations in India, as new research released today by Bain & Company finds. Bain's new Global Automotive Consumer Survey, based on responses from more than 12,000 car buyers worldwide *, finds price remains the top consideration when buying a car in the US and Europe, cited by 68% and 62% of consumers respectively, while technology and features (58%) rank ahead of price in China. In India, while affordability continues to be a fundamental consideration, the survey indicates that technology and features, alongside brand, are emerging as key purchase considerations. Increasing access to vehicle financing and aspirations to upgrade are also influencing purchase decisions, with technology and brand ranking ahead of price among survey respondents.

Loyalty to established automakers also varies considerably: US buyers remain the most committed, while newer Chinese brands are entering consideration in Europe. The findings come as legacy automakers face weak industry growth and continued pressure on profitability, alongside rapid advances in electrification, artificial intelligence and autonomous driving. The car-buying journey is changing quickly, but what stands out is how differently consumers across the globe are responding to that change,” said Klaus Stricker, leader of Bain's Global Automotive & Mobility practice. “Technology can be a powerful differentiator for some buyers, while for others price and brand remain decisive. We find that car buyers are increasingly using AI to compare brands, models and options.”

In India, about seven in 10 buyers considered only established automotive brands in their last purchase. As Indian consumers increasingly expect more features across vehicle segments, automakers need to balance technology-led differentiation with affordability and brand credibility. The way consumers choose cars has become increasingly digital. Bain finds that more than 80% of respondents globally now combine online and offline interactions during the purchase journey, while more than six in 10 start the buying process online.