NEW DELHI— 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.
Digital car buying accelerates, but dealerships remain critical
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. China is further ahead, with 95% using both online and physical channels and more than eight in 10 willing to consider completing their purchase online.
But greater use of digital channels has not diminished the importance of the physical dealership. Nine in 10 consumers globally still complete their purchase offline, and more than half of buyers in Europe, the US, China have at least two interactions with dealers along the way. Similarly in India, physical dealerships remain important throughout the purchase journey, with 54% of Baby Boomers/Gen X buyers and 44% of Gen Y/Z buyers having at least two dealer interactions, highlighting their continued relevance for vehicle evaluation and purchase completion.
“Digital channels are becoming increasingly important for vehicle discovery and research, but physical dealerships continue to play a key role in the purchase journey, particularly in evaluating vehicles and completing purchases”, said Mahadevan Seetharaman, leader of Bain’s India Advanced Manufacturing & Services practice. “For automakers, the opportunity is to make the physical and digital channels work together more effectively. The customer journey needs to feel connected from initial research through to vehicle evaluation and purchase”.
Artificial intelligence is also reshaping how consumers research and compare cars. AI is already widely used by car buyers across several Asian markets and UAE, reaching more than 90% in Indonesia and close to 80% across age groups in China. In Japan, Europe and the US, adoption is more concentrated among younger buyers, with 52%, 61% and 55% respectively using AI, more than twice the share of older consumers.
Similarly in India, AI is emerging as an important touchpoint in automotive research across all age cohorts, with usage particularly high among younger consumers. Around 90% of Gen Y/Z buyers and 79% of older generations report using AI during their purchase journey. Consumers are using AI assistants to compare vehicle features and benchmark prices, while also encountering AI-enabled tools such as online configurators and 360-degree visualisations.
“India car buyers are increasingly looking beyond price alone when choosing a vehicle. Technology and features have become important considerations, but consumers are also evaluating the value they get for the price they pay. Features that were once associated with premium vehicles are now becoming available across more affordable segments, raising expectations of what a car should offer”, said Rahul Mishra, partner in Bain’s India Automotive practice.
Younger consumers drive BEV interest, but barriers to wider adoption remain
Consumer interest in battery electric vehicles (BEVs) is strong, particularly among younger buyers, the survey finds. Younger consumers (Generations Y and Z) in general are more likely to buy BEVs, but in China, willingness to buy BEVs is high across both younger and older generations. In India, 57% of consumers are open to buying a BEV, with Gen Y showing the highest intent with 61%.
For consumers still reluctant to buy a BEV, cost and charging remain the biggest sticking points. In the US and Europe, around six in 10 are unwilling to pay more for a BEV than for a comparable combustion-engine car, while almost half cite charging times as a concern. In India, battery reliability (52%) and insufficient charging infrastructure (44%) are among the leading concerns cited by BEV skeptics. Among existing BEV owners in India, about 70% report charging at home often or always. Bain concludes that closing the price gap and making charging more convenient will be critical to persuading more consumers to make the switch.
Bain cites an example in Germany where BEV-buying decisions shifted once price parity narrowed. In August 2026, BEV registrations jumped 75% year-on-year to reach around 32% of new car sales. New government incentives and rising fuel prices drove the change – in addition to new strong BEV models entering the market.
Getting more buyers behind the wheel provides another lever. Globally, consumers who have already test-driven a BEV are up to 2.2 times more willing to consider purchasing one than those who have not. Yet mass-market buyers in Europe and the US are less likely to have tried a BEV, compared to premium buyers. With many potential buyers yet to try one, making test-drives easier to access could be one of the most effective ways for automakers and dealers to encourage wider BEV adoption.
In India, 82% of respondents who have tested a BEV would consider buying one, compared with 66% of those who have not. While first-hand experience is associated with stronger purchase consideration, converting that interest into actual purchases remains a separate challenge for automakers and dealers.
Autonomous driving could challenge traditional brand loyalty
Appetite for autonomous-driving technology is substantially stronger in China and several Asian and Middle Eastern markets than in Europe and the US, Bain finds. Some 84% of Chinese consumers would consider buying a vehicle offering at least Level 3 (L3) autonomy, compared with 47% in Europe and 40% in the US. L3 allows a car to drive itself under certain conditions but requires the driver to take over when prompted. Interest is even higher in the UAE and Indonesia.
Greater interest in autonomous driving could also weaken traditional brand loyalty. Consumers most interested in the technology are more willing to switch manufacturers for better functionality, with premium buyers in Europe and the US particularly open to changing brands. In China, willingness to switch is more widespread. For automakers, better autonomous-driving functionality could therefore become an increasingly important way to attract customers from competitors.
“Technology is now part of the reason customers choose one manufacturer over another,” Stricker added. “That raises the stakes for automakers. Brands need to understand where customers are willing to pay for innovation, where affordability remains the overriding consideration, and where better technology could be enough to persuade a customer to switch. That requires a much more precise understanding of what different customers value.”
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