The Indian automobile market is undergoing a major shift in consumer behavior. In September 2025, reports confirm that buyers are prioritizing premium features over price when choosing cars. From panoramic sunroofs to connected technology, luxury-like features are now a must-have, even in budget segments.
This marks a significant change in India’s auto industry, where affordability once dominated decision-making
Changing Buyer Mindset
Traditionally, Indian buyers focused on fuel efficiency and low cost as the key factors. However, rising incomes, easier financing, and growing exposure to global automotive trends have created a new set of priorities.
Today’s customers want cars that offer comfort, safety, and technology rather than simply the cheapest option.
Top Features in Demand
Several premium features are now seen as essential by car buyers in 2025.
-
Panoramic sunroofs for a premium cabin feel.
-
Ventilated seats for added comfort in hot climates.
-
ADAS (Advanced Driver Assistance Systems) including lane assist and adaptive cruise control.
-
Large infotainment screens with wireless Apple CarPlay and Android Auto.
-
Connected car tech that offers remote access, live tracking, and diagnostics.
Even hatchbacks and compact SUVs are now offering such features to stay competitive.
Role of Safety
Another strong trend is the rising importance of safety.
-
Cars with 5-star Bharat NCAP ratings are being preferred.
-
Buyers are willing to pay extra for six airbags and electronic stability control.
-
Young families, in particular, are prioritizing child safety features like ISOFIX mounts.
This indicates that Indian buyers now view cars as long-term investments in family security rather than just mobility.
Automakers Respond to the Trend
Manufacturers are quickly adapting to this new demand.
-
Hyundai and Kia are equipping mid-range cars with ADAS and large touchscreens.
-
Tata and Mahindra are focusing on safety with stronger body structures and standard airbags.
-
Maruti Suzuki has shifted its strategy by adding premium interiors and features to attract young buyers.
The result is a market where features are driving competition more than pricing alone.
Impact on Pricing
Naturally, the addition of premium features has pushed car prices higher.
-
Entry-level hatchbacks now start at ₹6–7 lakh with premium touches.
-
Compact SUVs with sunroofs and connected tech easily cross ₹12 lakh.
-
Buyers, however, are not resisting these price hikes as long as value is delivered through features.
This shows that the Indian buyer’s definition of “affordable” has changed significantly.
Consumer Preferences in Urban vs Rural Markets
Urban buyers, especially in metro cities, are leading this trend.
-
Young professionals see cars as a lifestyle statement.
-
Families in cities prefer convenience features like auto climate control and parking cameras.
In semi-urban and rural markets, affordability still matters, but there is a growing demand for safety and basic premium features like touchscreens and ABS.
Expert Opinions
Auto analysts believe this shift will redefine the Indian car market in the coming years.
-
Premium features will no longer be limited to luxury cars.
-
Automakers will focus on mass adoption of tech and safety across all price segments.
-
The competitive landscape will increasingly depend on who offers the most value-added features rather than just the lowest price.
What It Means for Buyers
For buyers, this trend is both positive and challenging.
-
On the plus side, they now get feature-rich cars even in budget segments.
-
On the downside, they may have to stretch budgets to afford the new feature-loaded models.
However, most customers believe the added convenience and safety justify the cost.
Final Thoughts
The premium car features trend in 2025 highlights a new era for Indian car buyers. Cars are no longer seen as just a mode of transportation but as a lifestyle product that must deliver safety, comfort, and advanced technology.
For automakers, the challenge is to strike the right balance between pricing and features. Those who succeed will win the loyalty of the next generation of Indian buyers.
As the industry evolves, one thing is clear: features are now the new fuel driving car sales in India.
FAQs
What features are most in demand among Indian buyers in 2025?
Panoramic sunroofs, ventilated seats, ADAS, large infotainment screens, and connected car technology.
Are buyers still focused on price and mileage?
While price and mileage matter, buyers now prioritize safety and features over just affordability.
Which automakers are leading this premium feature trend?
Hyundai, Kia, Tata, and Mahindra are leading with feature-rich offerings across segments.
How has this trend affected car pricing?
Prices have risen, but buyers accept it as long as they get value-added features and safety.
Is this trend limited to metro cities?
Urban buyers are leading, but even rural and semi-urban buyers are demanding premium features.
Click here to know more.