Why are fewer Thriller movies made in Tollywood (Telugu Cinema) when compared with other film industries in India?
Producers know what kind of movies audiences appreciate and which of them generate more revenue. A thriller is not always guaranteed to be a success, but any action movie with "masala" added has enough of thrills that enthrall an audience. Specific to Telegu cinema, I believe the NTR-era movies may have set a trend of larger-than-life heroes whom common people look up to and anticipate for future movies too. Similar to actor Rajinikanth's fanbase. I believe it also has to do with the cultural upbringing. For example, Tamil movies are somehow a bigger hit if it has a sad ending.