Buying a car in India has become easier, but choosing one has become harder. Since 2021, the number of passenger-vehicle models has grown by 8%, while the number of variants has jumped 56% to 1,923, as automakers add combinations of powertrains, transmissions, and features across price points.
According to a report in The Economic Times, this proliferation of variants allows manufacturers to respond to changing demand without waiting for an entirely new model cycle. The strategy is deliberate, as explained by Amit Dhaundiyal, head of product strategy & planning at Hyundai Motor India. "Developing new variants is faster and more cost-effective than introducing all-new models," he said. "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."
However, the growing number of options brings its own complications. Dhaundiyal acknowledged that "excessive overlap can make the purchase decision more complex." He stressed the importance of "clear differentiation and a simple, logical variant hierarchy that makes the customer's choice easier."
Partho Banerjee, senior executive officer at Maruti Suzuki, views the trend as a response to a more diverse consumer base. "The rapid growth in variants reflects the increasing diversity of customer needs and evolving market preferences," he said. "Today's customers seek different combinations of powertrain, transmission features, and price points." Banerjee noted that Maruti Suzuki currently offers more than 1,100 variant-colour combinations.
The paradox of choice is central to the challenge, according to Ravi Bhatia, president of Jato Dynamics. "The paradox is that buying a car has become easier while choosing one has become more complex," he said. Bhatia added that "the real decision now comes down to understanding differences between variants and what an additional ₹50,000 or ₹1 lakh buys." He expects this dilemma to intensify as automakers compete not just on models but also on how finely they can tailor them to different buyers.
Dealers see the effects firsthand. Sai Giridhar, vice president of the Federation of Automobile Dealers Associations (FADA), said customers are arriving at showrooms well-researched but still struggle to make a final decision because of the number of variants. "Consumers usually decide on a brand and broad price band before approaching a dealer, who then helps them navigate through variants within that range," he explained.
Giridhar also highlighted the operational burden on dealers. "Dealers must stock multiple versions of the same model, increasing inventory requirements and tying up working capital," he said. He estimated that the typical price difference between variants is around ₹50,000–75,000. He further noted that manufacturers tend to match the variants and features offered by rivals, creating a cycle in which every new option can prompt another competitor response.
As the Indian auto market grows, the balance between offering choice and managing complexity remains a key challenge for manufacturers, dealers, and buyers alike.