India’s car buyers get more choice, more confusion

Mumbai: Car buyers in India are enjoying increased choice, but the decision process has become more complicated. Automakers are rapidly introducing new variants, powertrains, and feature combinations, offering customers more ways to personalize a vehicle. However, this abundance of options also means more decisions to make before buying a car.

Since 2021, the number of passenger-vehicle models in India has grown by 8%, with a 56% increase in variants across existing models. This trend allows manufacturers to quickly adapt to changing demand without waiting for a new model cycle. Amit Dhaundiyal, head of product strategy & planning at Hyundai Motor India, explained that developing variants is faster and more cost-effective than launching entirely new models.

Despite the added complexity, the goal is to maintain clear differentiation between variants and create a straightforward hierarchy that simplifies the customer's decision-making process. Partho Banerjee, senior executive officer at Maruti Suzuki, noted that the rapid growth in variants reflects the diverse needs of consumers, who seek different combinations of powertrain, transmission, features, and price points.

The scale of choice is vast, with Maruti Suzuki alone offering over 1,100 variant-color combinations. For consumers, the challenge lies in selecting the right combination of features, performance, and running costs that align with their needs and budget. Ravi Bhatia, president of Jato Dynamics, highlighted the paradox of easier car purchasing but more complex choice-making for customers.

As competition intensifies, carmakers are focusing on fine-tuning their offerings to cater to individual buyer preferences. Dealers report that customers are arriving better informed, but the sheer number of variants can still complicate the final decision. Sai Giridhar, VP of the Federation of Automobile Dealers Associations (FADA), advised customers to remain vigilant and focus on understanding the value of each added feature or price increase.

While more choice can result in a car better suited to a buyer's needs, it also means investing more time in determining whether the incremental features, powertrain, or equipment upgrades are worth the additional cost. The typical price difference between variants is approximately ₹50,000-75,000. Ultimately, the proliferation of variants presents both opportunities and challenges for Indian car buyers.