Here's my take as someone who used to work for an automotive audio company...
Factory-fitted audio systems in cars that cost less than $40-50K don't really have custom or finely-tuned audio components. In cars below this price point, price matching audio components are slapped on with some pre-defined audio profiles based on speaker configuration, car size etc. Beyond this, there isn't really any serious optimization. This is true even for entry variants of the likes of premium brands such as JBL, Bang & Olufsen, Bose, B&W etc. So you can imagine how it might be in Indian cars which mostly have very basic, mostly off-brand audio components.
A car is usually a much smaller environment in comparison to a listening room. Moreover, limitations related to placement of speakers, road noise, external noise, mechanical vibration, poor power supplies etc make it difficult and expensive to get even to even 20% of the overall home hifi quality one can achieve for the same expense.
So a few thumb-rules.
1) Any spend on audio of more than 10-15% of the on-road price of a car is a waste unless your car costs above $75K or equivalent.
2) Of your total budget, allocate 40-50% on damping, noise insulation, secondary battery, wiring harness etc as the car environment plays a much bigger role in terms of audio quality than components.
3) Get any after-market brand that's available at your car accessories dealer as it doesn't really matter unless you are willing to spend serious money. There isn't much to seperate between JBL, Polk, Alpine, Kenwood, JVC, Kicker, Sony, Pioneer in the entry aftermarket space. So, I am not sure if auditioning is actually required for the component purchase.
3) Spend more on amplification and speakers..less on head unit. Get component speakers rather than coaxial if you can for better imaging, seperation.
4) Get a good after-market audio installer, someone who is familiar with the products, understands your music preferences, can install it in the right way with attention to harness, cables etc and can even fashion custom enclosures if required as most default speaker placements are not ideal for audio. More importantly, some who knows that audio tuning in a car is much more than changing EQ, tone controls, balance or fade on the head unit.
5) Pay particular importance to the soundstage in the car as most car audio systems tend to have a very forward sound-stage and not all enveloping. This becomes more important if one is chauffeur-driven.
6) Finally, don't get a sub-woofer unless you again willing to spend serious money in tuning it. Subwoofer and cars are a recipe for migraines and headaches.
You can take a look at TeamBhp for advice on car audio from experts who claim to know a lot more!