New Delhi [India], September 24 : Artificial intelligence (AI) is changing how Indian consumers research cars, helping them compare models, evaluate features, calculate financing options and prepare for price negotiations before making a purchase, according to a Google-Kantar study that also calls for automobile manufacturers to adapt their marketing strategies to changing consumer behaviour.
The study, titled "Automobile Purchase Journey in the Age of AI", found that 93 per cent of surveyed car buyers used AI-powered tools during their research, indicating the growing role of the technology in vehicle purchase decisions.
According to the report, consumers are moving beyond basic searches to ask more specific questions about vehicles that suit their budgets, driving conditions and personal requirements.
The study found that buyers use AI to explore available models, prioritise features, compare technical specifications, shortlist vehicles and calculate equated monthly instalments (EMIs). AI is also being used to prepare negotiation strategies before purchasing a car.
The report noted that AI users consulted an average of 7.8 information sources during their purchase journey, compared with an overall average of 6.9 among surveyed buyers, suggesting that AI is becoming part of a wider research process rather than replacing other information sources.
It also found that 80 per cent of surveyed car buyers who used AI chatbots consulted Google Search and/or YouTube during their active research.
Commenting on the findings in a company press release, Siddharth Shekhar, Director, Google India, said, "The car buying journey in India is deliberate, non-linear, and deeply digital—particularly ahead of the festive season, when consideration peaks. Buyers move between discovery on YouTube and conversational validation on Search."
As consumers increasingly seek detailed information before purchasing vehicles, the report calls for automobile companies to adapt their digital marketing strategies to address specific customer requirements.
It recommends that manufacturers develop detailed reviews, practical demonstrations and informative content covering everyday vehicle usage, rather than relying only on general product specifications.
The report cites examples such as demonstrating whether a child seat fits inside a vehicle, explaining home electric vehicle charger installation and showing how advanced driver assistance systems and 360-degree cameras work in daily traffic.
The study also highlights how manufacturers are combining video advertising with AI-powered digital marketing to reach potential buyers at different stages of their purchase journey.
It cites Hyundai Verna's campaign, which combined YouTube and AI-powered Google advertising solutions and recorded a 30 per cent increase in retail sales during March-April 2026 compared with January-February 2026. The campaign also reported a 35 per cent increase in leads and a 32 per cent reduction in cost per enquiry.
The Google-commissioned study was conducted by Kantar in May 2026 through an online survey of 1,022 people who had purchased cars in the previous six months across metropolitan and Tier 1 cities in India.