In 2020, more than a third of all pre-owned cars sold in India had an automatic gearbox, with nearly equal demand in metro and non-metro cities
Cars with automatic transmissions have been gaining popularity in the used car market in India, according to a report by Droom. The report states that the adoption of automatic cars has increased to 37 per cent in 2020, which is more than a two-fold increase compared to 17 per cent back in 2016.
Interestingly, the adoption of automatic transmissions in the new car market is lower, at 20 per cent, compared to the used car market! The biggest reason is believed to be the lower price difference between a manual and an automatic vehicle in the used car market. Among new cars, said difference is much higher, which prompts most buyers to opt for the less expensive manual options instead.
Also, the demand for automatic cars in metro and non-metro cities was found to be quite close. The biggest markets for automatic vehicles are Delhi NCR, Pune, Mumbai, Hyderabad, Chennai, and Bengaluru, along with Warangal, Ahmedabad, Mangalore, Coimbatore, Indore, and Jaipur.
“In the pre-owned market, the price difference between manual and automatic transmission is not as big as in new vehicles. Hence people have a higher preference for automatic transmission from the point of value and sheer convenience. The demand in the mid and high segment is more for automatic, whereas in the lower segment there is an equal preference for manual,” said Sandeep Aggarwal, founder and CEO, Droom.
The survey had a sample size of 1.1 billion users, around 20,000 dealerships, and 3.2 lakh vehicle sales. Droom also stated that the sale of diesel cars in the pre-owned market has increased, up from 35 per cent in 2015 to 65 per cent in 2020! One reason could be the lack of affordable diesel-powered options in the new car market, thanks to the BS6 emission norms.
In 2020, Indian and Japanese cars made up around 55 per cent of the used car market in our country, with German cars holding 18 per cent share, and Korean vehicles holding a 12 per cent share. Also, white and silver are the most popular colours for pre-owned vehicles, accounting for over 50 per cent of all used cars sold.