Skip to content
Thursday 17 September 2026 marketing · daily

Marketing News · AI Marketing

AI Is Rewriting India’s Car-Buying Funnel

As car buyers use AI chatbots to shortlist before visiting dealerships, automakers face a new challenge: making 1,923 product variants machine-readable.

AI Is Rewriting India's Car-Buying Funnel
In this story
  1. The buying journey has moved downstream
  2. The 1,923-variant problem
  3. How automakers are responding
  4. What marketing teams should do now
  5. The next battleground

Indian car buyers are still walking into showrooms, but the shortlist they carry is increasingly being built by an AI chatbot before a dealer even captures a lead. For automotive marketers, that is a shift from winning search results to winning recommendations.

A Mumbai buyer with a Rs 25 lakh budget might no longer type “best SUV under Rs 25 lakh” into a search box. Instead, they describe a family of five, a dog, luggage and an elderly parent to a conversational assistant, then let the tool ask follow-up questions about boot space, automatic transmission and a 360-degree camera. The result is a preference order shaped before a salesperson speaks to the customer.

The buying journey has moved downstream

Traditional SEO was about appearing at the top when someone searched. AI changes the battlefield, pushing influence further down the funnel: from being found to being considered and recommended. Ravi Bhatia, president of Jato Dynamics, puts it directly: “The first shortlist may now be formed before a dealer receives a lead.”

Vivek Srivatsa, chief commercial officer at Tata Passenger Electric Mobility, says AI is becoming “one of the most influential touchpoints” in the purchase journey. The job is no longer just discoverability, he notes; it is being understood by these systems.

The 1,923-variant problem

India’s passenger-vehicle market is complex. Jato Dynamics counts roughly 1,923 variants across powertrains, transmissions, equipment levels and constantly changing prices. To a consumer, a model may look like one product; to a manufacturer, it is a family of differentiated propositions.

If an AI system cannot distinguish which variant has which feature at which price, it can easily produce an incomplete or incorrect recommendation. A buyer asking whether a higher variant is worth an extra Rs 1 lakh needs a machine that understands the exact trade-off. Incorrect features, outdated prices or confusion between two variants can alter the shortlist before the sales process begins.

How automakers are responding

Maruti Suzuki is building AI visibility and working with Siftly on generative engine optimisation, along with Sarvam AI for multilingual AI-led interactions. Hyundai Motor India’s HyGenie platform is seeing multi-turn conversations around features, financing and ownership experiences, with Tarun Garg, managing director, saying nearly 70% of users prefer the AI-led experience.

Mahindra & Mahindra has gone further down the funnel: AI-led conversations for the XUV 7XO resulted in 17,000 test drives being booked. Nalinikath Gollagunta, CEO of the automotive division, says customers now come to validate an informed choice they have already made, moving the battleground from search to recommendation.

At the same time, Partho Banerjee of Maruti Suzuki says AI will complement, rather than replace, physical interactions. The final choice still depends on product experience, dealer interactions and brand trust.

What marketing teams should do now

The exposure is specific: if you want your products to be recommended, the machine needs clean, structured and current product data at variant level. That creates a practical checklist for auto marketers and agencies:

  • Audit product information across websites, configurators and third-party platforms for accuracy and consistency.
  • Build variant-level content that explains feature differences, pricing and use cases clearly.
  • Optimise for conversational questions, not only keywords — for example, “which SUV suits a family with a dog and long highway trips?”
  • Track AI-led referral traffic and recommendation mentions wherever platforms allow.
  • Feed local-language and multilingual queries, since AI adoption is not limited to English-first buyers.

The next battleground

The race is no longer only about brand desire. It is about whether AI systems can accurately parse the difference between thousands of variants and match them to real consumer needs. Brands that fix their product data, create conversational content and connect AI recommendations to action — such as test drives — can capture demand before traditional lead generation begins.

Source: ETBrandEquity.com

Written by

Marketing Junkies Desk

Marketing Junkies covers agency moves, campaigns, martech and adtech launches with an Indian and global lens. Every story is written from a named source and links back to it.