Indian car buyers prioritise safety over mileage

The Indian automotive industry has been predominantly driven by cost and fuel efficiency. The buying decision has largely been based on best possible mileage for the least amount of cost possible. However, the latest trends show that this status quo is changing, as the safety ratings of vehicles are now the most important consideration while buying a car.

According to McKinsey’s Automotive Consumer Survey, over 70% of car buyers in India now view safety ratings as the most important aspect of vehicles, with 58% of respondents willing to spend a little more money on a safer vehicle.

This change of consumer preference is indicative of a more mature market that is beginning to prefer the long term benefits to avoid the cheaper alternatives.

What is driving this change?

Several factors contribute to this shift in priorities. Awareness on road safety among Indian consumers is the primary factor with frequent road accidents being reported. The purchase decision is also impacted by more buyers being aware and informed about the risks associated with driving unsafe vehicles. 

Safety expectations and norms are also being ingrained through government efforts like the AIS-197 BNCAP. BNCAP requires that all models of all vehicles sold in India are subject to detailed safety testing, crash tests including. It also advocates for comprehensive safety measures such as the installation of six airbags in various classes of vehicles. The program has incorporated safety ratings which consumers have access and understanding of; and hence increased the need for safe cars. Such consumer centered initiatives by the government to enhance safety measures are facilitating change in consumer behavior in the right direction.

The impact on consumer behaviour

In 2023, 28% of car owners in India with low vehicle safety rating planned to upgrade their vehicles, according to a report by LocalCircles. This underscores the growing importance of safety in the decision-making process. Today, safety is not an optional feature but a necessity.

Additionally, 48% of buyers now ensure compliance with speed limit and seatbelt, reflecting a broader shift towards responsible driving behaviour. The Deloitte 2023 Global Automotive Consumer Study further highlights that 8% of car owners would avoid using their vehicles on high-speed roads if they believe their car is not sufficiently safe. This level of caution indicates a fundamental change in how Indian consumers perceive vehicle safety. .

Safety features and industry response

As safety becomes a priority, car manufacturers are responding by enhancing safety protocols and incorporating advanced technologies into their vehicles. Major players like Tata Motors, Hyundai, Kia, and Citroen are known for the models introduced by them that boast 5-star safety ratings. These companies have recognised the growing demand for safer vehicles and are actively investing in safety innovations.

The Global NCAP ratings for 2024 announced Tata Harrier and Tata Safari as the safest cars in India, both scoring 5 stars in adult and child occupant protection. These models are equipped with a range of safety features, including six airbags, Electronic Stability Program (ESP), and ISOFIX seat anchorage.

Other high rating models include the Volkswagen Virtus, Skoda Slavia, and Mahindra XUV700--equipped with safety technologies such as Vehicle Stability Management (VSM) and rear seatbelt reminders. The focus on safety is not limited to high-end models; even entry-level and mid-range vehicles are now being designed with safety in mind.

Changing Preferences

5-star crash ratings are now the most preferred safety standard among Indian consumers, with the demand for such vehicles growing by 15% year-on-year. This data points to an unprecedented and prolonged focus on safety, which will influence the behaviour of the Indian auto market for years to come. Customers are not satisfied with minimum safety limits any longer, they are looking for the most protective cars.

Conclusion: a new era for Indian car buyers

The Indian automotive market is witnessing a paradigm shift, with safety taking precedence over traditional concerns like price and fuel efficiency. While car manufacturers are prioritising safety features, consumers are willing to invest in vehicles that offer enhanced protection.

As safety becomes the defining factor in vehicle purchases, the industry is set to evolve with new standards and expectations, shaping the future of automotive design and manufacturing in India. The focus on safety is not just a passing trend but a fundamental shift that will continue to influence the market for years to come.