The debate around E20 ethanol-blended fuel has done more than spark conversations around compatibility and efficiency. It comes at a time when Indian car buyers are already spreading their bets across powertrains. In August, CNG, hybrid and electric vehicles together accounted for 41.95 per cent of passenger-vehicle retail sales, edging past petrol and ethanol at 40.85 per cent, according to FADA data. The data points to a market where consumers have more choices than ever, making it harder for automakers to simply sell a product and easier to see why they need to explain which technology fits which buyer.
That question is also reflected in where investors are placing their bets. According to an IBEF report citing Grant Thornton Bharat’s Automotive Dealtracker, India’s automotive sector recorded 20 mergers and acquisitions and private equity or venture capital deals worth ₹6,900 crore in Q2 2026. While deal volumes fell to their lowest level since Q2 2023, capital continued to flow into electric vehicles, mobility platforms, automotive software and cybersecurity rather than traditional automotive businesses.
Where money flows, marketing evolves. As technology becomes a bigger part of the industry’s growth story, automotive brands are moving beyond selling horsepower and mileage to selling software, connected experiences and complete ownership ecosystems.
From machines to mobility brands
Horsepower once dominated automotive advertising. Today, software, connectivity and ownership experiences are taking centre stage as several automakers reposition themselves as technology-driven mobility brands.
“The automotive customer is undergoing a digital transformation. A significant portion of the vehicle discovery, evaluation and purchase decision journey now takes place through digital channels,” says Anurag Singh, Managing Director at Primus Partners.
According to Singh, the transformation extends beyond the buying journey. Vehicle features themselves are increasingly digital by design, regardless of whether consumers eventually choose an internal combustion engine (ICE) vehicle or an electric vehicle (EV).
“Recognising this fundamental change in customer expectations, Original Equipment Manufacturers (OEMs) are responding by redefining their value propositions, accelerating their digital capabilities, and repositioning themselves as technology-driven mobility brands,” he says.
That shift is also reflected in the way brands communicate. Aakash Goplani, Vice President - Business at SoCheers, believes automotive branding will increasingly depend on a company’s product portfolio.
“Manufacturers with strong EV line-ups will naturally focus on technology, sustainability and connected features. However, India is still largely an ICE market, with charging infrastructure and EV affordability remaining barriers. Brands without a strong EV presence will continue to build communication around reliability, fuel efficiency, ownership experience and long-term value. Going forward, branding will become more segmented, aligned to both the product and the target audience,” he says.
Selling confidence in a changing market
The growing conversation around ethanol has introduced another variable into an already evolving mobility landscape. While it has prompted consumers to reassess different powertrain options, industry experts believe buyers today are becoming more informed rather than confused.
“Customers are becoming much more informed,” says Reeti Nageshri, Head of Business Operations, Electric SUVs, Mahindra. “They’re evaluating powertrains based on their lifestyle, daily commute and driving needs, rather than following trends. As manufacturers, our role is to simplify that choice.”
She says customer conversations have evolved significantly over the past few years.
“Three years ago, customers would ask, ‘Will an EV work for me?’ Today, they ask, ‘Which EV should I buy?’ That’s a fundamental shift. Since we started deliveries last year, we’ve already sold over 77,000 electric SUVs, and today we’re India’s No. 1 EV player by revenue market share. Customers are no longer viewing EVs as an alternative to ICE. They’re choosing them for technology, performance, design and the overall ownership experience.”
Nageshri adds that growing consumer confidence is also reflected in Mahindra’s own business. “The industry’s EV penetration has grown meaningfully, and we’ve seen our own electric portfolio reach 12 per cent of our SUV sales, reflecting growing customer confidence.”
Singh believes ethanol occupies a different place in automotive communication. While it offers environmental and energy security benefits, he says automakers are currently treating it more as a policy-led transition than a brand differentiator.
Singh adds, “Ethanol has both advantages and disadvantages. On the positive side, it is a cleaner, more environmentally friendly fuel and helps reduce dependence on imported crude oil. However, higher ethanol blends can increase fuel consumption, and vehicles may require upgrades to ensure compatibility. At present, OEMs appear to be focused primarily on complying with government mandates and policy initiatives rather than positioning ethanol-compatible technologies as a demonstration of their engineering or technological capabilities.”
Goplani, however, believes the conversation has influenced how brands communicate. “The ethanol debate has created uncertainty, making many consumers reconsider petrol vehicles and explore alternatives. Brands have responded by increasing communication around their diesel, CNG, hybrid and EV portfolios, giving consumers more confidence and choice. In a high-involvement category like automotive, reducing uncertainty has become an important part of brand communication.”
From selling cars to selling experiences
As technology becomes increasingly standard across the industry, brands are finding that feature lists alone no longer drive preference. Instead, marketers are selling the ownership experience.
“Indian customers want affordability, reliability, and strong after-sales support, alongside the latest technology,” says Tapan Ghosh, CEO, VinFast India. “That’s why advanced technologies, smart connectivity and a strong after-sales ecosystem are central to our strategy.”
Nageshri believes this shift will define the next generation of automotive brands. “Technology will be the starting point, but the winners will be defined by the complete ownership experience. Sustainability may bring customers into the category, but experience will make them stay.”
Building ecosystems, not just vehicles
The shift in messaging also reflects a broader change in what consumers expect from automotive brands. Increasingly, the vehicle is only one part of the overall proposition, with charging infrastructure, connected services and after-sales support becoming part of the brand promise.
Nevin Aslan-Özkan, MD, Continental Tires India, says the shift is also changing what consumers expect from the broader automotive ecosystem. “The conversation is moving beyond simply selling cars to creating a broader mobility experience, where technology, safety and comfort are becoming increasingly important,” she says. “As a tyre manufacturer, we see this shift reflected in the changing role of tyres themselves. At Continental Tires, we have always believed that performance is about more than grip and mileage; it is about how well our products integrate with the evolving technology around them and contribute to a safer, comfortable, and more efficient driving experience.”
According to Singh, Indian consumers evaluate total cost of ownership alongside practical considerations before embracing new technologies. “While the internal combustion engine ecosystem is well established and mature, the electric vehicle ecosystem is still evolving. Recognising this, most OEMs are making meaningful investments in expanding charging networks and strengthening service infrastructure to improve customer confidence and accelerate adoption.”
Goplani believes brands need to tailor this message to different audiences. “For premium buyers, connected ecosystems are becoming an important differentiator. At the same time, the broader market continues to prioritise affordability, reliability and ownership experience, making it important for brands to balance innovation with practical value."
The next marketing battleground
As connected technologies become standard, differentiation will depend less on feature lists and more on how brands communicate their value.
“Consumers will find it harder to distinguish one brand from another based on features alone,” says Goplani. “Marketers will need to clearly communicate how their technology delivers a better everyday ownership experience rather than simply offering a longer feature list.”
Singh believes the industry’s biggest challenge will be simplifying choice. “The sheer number of brands, models, powertrains and variants will make choice itself the biggest challenge. Success will hinge less on offering more options and more on simplifying decisions.”
The direction of investment offers a glimpse of where the industry is headed. As capital flows into electric mobility, connected technologies and software, automotive brands are increasingly competing not just on engineering, but on the experiences and confidence they build around them.
