India’s consumer buying outlook weakened for the second consecutive month in August, with the India Buying Intent (India BI) index declining 0.60% month-on-month to 98.80 from 99.40 in July, according to the latest reading from TRA Research.

The August index was classified as Decelerating, falling below its three-month trend of 99.27. The decline also coincided with a wider contraction across categories. Of the 35 super-categories tracked by the index, 18 contracted in August, up from 12 in July. 

The trend marks a gradual easing in overall buying readiness, with India BI moving from 99.60 in June to 99.40 in July and 98.80 in August. However, the movement was not uniform across the market, with several major consumer categories continuing to register positive momentum.

Among the larger consumer-facing categories, Technology recorded the strongest improvement, with its BI rising from 6.3 in July to 7.1 in August. Automobile followed, moving from 10.3 to 10.9, while Consumer Appliances increased from 2.4 to 2.9.

Automobile’s performance was particularly notable. Its category BI has risen consistently over the past three months, from 7.8 in June to 10.3 in July and 10.9 in August, indicating strengthening consumer intent in the segment despite the broader slowdown.

Consumer Electronics, meanwhile, moderated from 14.0 in July to 13.4 in August. However, the category remained well above its June reading of 11.9, retaining much of the sharp recovery recorded in July.

The movement was less favourable across several other large consumer categories. Food & Beverage declined from 10.4 to 9.4, Personal Accessories fell from 5.8 to 4.8, and FMCG slipped from 9.1 to 8.2.

Brand momentum remains sharply divided

The divergence was even more pronounced at the brand level. Hyundai recorded the largest positive movement in Buying Intent, gaining 298.7 points month-on-month. TVS followed with a 273.4-point increase, while Dell (+242.4), Toyota (+209.2) and Honda (+192.2) completed the top five gainers.

Voltas, Lenovo, HDFC Bank, Royal Enfield and IFB were the other brands among the ten strongest positive movers.

At the other end of the spectrum, Maruti Suzuki recorded the largest decline, falling 348.0 points. Titan (-311.1), Amul (-259.7), LG (-250.9) and Blue Star (-250.9) followed. Sony, State Bank of India, LIC, Hitachi and boAt also featured among the ten brands with the steepest declines.

The contrasting performance of brands within the same categories points to an increasingly selective consumer market. Automobile brands, for instance, appeared on both sides of the momentum table, with Hyundai and Toyota among the strongest gainers while Maruti Suzuki recorded the biggest decline overall. Similar divergences were seen across consumer durables, electronics and banking.

Beyond the larger categories, Services posted the biggest percentage increase in August, rising 128%, followed by Transportation at 99% and Healthcare at 46%. Print Media recorded the sharpest decline at 67%, followed by Dinnerware at 49% and Alcoholic Beverages at 41%.

Consumers remain deliberate in their choices

Despite the movement in overall buying intent, the underlying buying mindset changed little during the month. Conscious evaluation accounted for 62.61% of buying decisions in August, marginally lower than 62.67% in July. Instinctive buying accounted for the remaining 37.39%.

N. Chandramouli, CEO, TRA Research, publishers of Buying Intent data, said, “August shows consumers are indecisive in their buying readiness. India BI has eased for a second consecutive month, and Category BI has also narrowed, but the movement is far from uniform. Automobile has strengthened for a second month, Technology has moved up sharply, and Consumer Appliances has also gained. For marketers, this is a market that needs to be read category by category rather than through the national number alone.”

“For marketers, August calls for sharper allocation by geography, in fact even by zones in a city. One has to deliberate more on micro-marketing and micro-advertising with promotions aimed at the most amenable audiences and city-belts,” Chandramouli added.

The monthly tracking of India BI helps brands, marketers, agencies, media houses, consultants, researchers and business analysts understand the state of the market and its direction. By monitoring changes in brand and category momentum month after month, the index offers an early view of emerging consumer trends, competitive shifts and evolving buying behaviour across the marketplace.