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India’s car buyers get more choice, more confusion

By Sohail Khan 23 August 2026, 5:00 am

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Business News›Industry›Auto›Cars & UVs›Indian car buyers face difficult choices as automakers offer hundreds of variants across price points

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Indian car buyers face difficult choices as automakers offer hundreds of variants across price points

Synopsis

India’s passenger vehicle market has seen a sharp rise in the number of variants offered by automakers, making cars more customisable but also making purchase decisions more complicated.

The interiors of Maruti Suzuki’s e Vitara SUV car inside a showroom in Ahmedabad — Buying a car in India is getting easier, but choosing one is harder.

Mumbai: Buying a car in India is getting easier, but choosing one is harder. Carmakers are adding variants, powertrains, and feature combinations at a rapid pace, giving buyers more ways to tailor a car to their needs, but also more decisions to make before a purchase.

Since 2021, the number of passenger-vehicle models has grown 8% in the country. There has, however, been a proliferation of variants within existing models, with automakers adding combinations of powertrain, transmission and features across price points. The number of variants has jumped up 56% to 1,923 in this period. In an increasingly competitive market, this allows manufacturers to respond to changing demand without waiting for an entirely new model cycle.

ALSO READ | Maruti Suzuki sees small cars, SUVs driving India’s auto market to 6.3 million

“Developing new variants is faster and more cost-effective than introducing all-new models. With continuous feature enhancements and advanced technology adoption, variants enable OEMs to address diverse customer preferences across powertrains, transmissions, features and price points, while maximising the potential of existing vehicle platforms,” said Amit Dhaundiyal, head, product strategy & planning, Hyundai Motor India.

ET Bureau

But adding variants creates its own challenge: making sure the differences are clear enough for buyers to understand.

“Excessive overlap can make the purchase decision more complex. The key is to maintain clear differentiation and a simple, logical variant hierarchy that makes the customer’s choice easier,” Dhaundiyal said.

ALSO READ | Mid-size SUVs gain share in India as car buyers move to bigger vehicles

Maruti Suzuki sees the trend as a reflection of a more diverse consumer base

The Paradox of Choice

“The rapid growth in variants reflects the increasing diversity of customer needs and evolving market preferences,” said Partho Banerjee, senior executive officer, Maruti Suzuki.

“Today’s customers seek different combinations of powertrain, transmission, features and price points. While developing an all-new model requires significant investment and longer timelines, expanding variants allows manufacturers to respond more quickly using an established product platform,” Banerjee said.

The scale of choice is already substantial. Maruti currently offers more than 1,100 variant-colour combinations, Banerjee said.

For consumers, the challenge is to work out which of those combinations suit their needs, and how much are they willing to pay for it. A buyer may be choosing not just between models, but between several versions of the same car, each offering a slightly different mix of features, performance and running costs.

“The paradox is that buying a car has become easier while choosing one has become more complex. The customer has unprecedented access to models and information, but the real decision increasingly comes down to understanding the differences, what another ₹50,000 or ₹1 lakh buys, what you gain and what you give up,” said Ravi Bhatia, president, Jato Dynamics.

That dilemma is likely to grow as carmakers compete not just on models, but on how finely they can tailor them to different buyers.

Dealers said customers are arriving at showrooms better researched, but the number of variants can still complicate the final decision.

“Options are good for the consumer, but he needs to be vigilant,” said Sai Giridhar, VP, Federation of Automobile Dealers Associations (FADA).

Customers, Giridhar said, often settle on the brand and broad price band before approaching a dealer. The dealer then helps them navigate the variants within that range.

There is a cost on the retail side too. Dealers must stock multiple versions of the same model, increasing inventory requirements and tying up working capital. Giridhar said manufacturers also tend to match the variants and features offered by rivals, creating a cycle in which every new option can prompt another competitor response. The typical price difference between variants, he said, is around ₹50,000-75,000.

For consumers, more choice can mean a car that better fits their needs. But it can also mean spending more time figuring out whether the next feature, powertrain or equipment grade is worth the premium, industry experts said.

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