Manual or Automatic: Which Transmission Do Used Car Buyers In Delhi Prefer?

The car market in India has been dominated by manual transmission cars for decades. However, the preference for automatic cars, both new and used, is on the rise owing to growing traffic congestion in cities. According to CARS24 data, cars with automatic gearboxes contributed to 14.7% of all used car sales in India in 2024, up from 11.8% in 2022.

In the Delhi-NCR region, the percentage of second hand automatic cars was close to 8%. This article explores the transmission preferences of Delhi’s used car buyers and how they’re poised to change.

Used Car Transmission Trends in Delhi: Automatics On The Rise

The CARS24 Gears of Growth report provides valuable insight into the buying habits in the used car market in Delhi, which leads us to some important conclusions on transmission preferences.

Key Takeaways:

• Delhi has a much higher preference for used manual cars over automatics when compared to the national average
• Manual transmission cars are still popular due to their lower purchase price and lower maintenance and running costs
• Automatics showed a slight gain over previous year’s data
• The gradual increase in used automatic car sales can be attributed to more buyers prioritizing driving convenience in city traffic
• Considering Delhi’s traffic is generally flowing, even if at lower speeds, the adoption rate of automatics could remain slower than in other cities that suffer worse gridlock traffic jams

Do Transmission Types Affect Resale Value In Delhi?

As with new cars, a buyer’s choice of transmission when it comes to secondhand cars is one largely based on cost versus convenience. Buyers must weigh the pros and cons of choosing an automatic over a manual. 

Though used automatic cars are more affordable than new ones, many buyers avoid them due to concerns over potentially high repair costs.The increased availability of AMT automatics at lower price points, with less complex technology, is certainly a key factor in the growing preference for automatic cars.

• Generally speaking, resale value of manual cars is higher than automatics due to the potential of repairs one may need to carry out 
• Automatics with torque converter or CVT technology may require costly repairs, which buyers often use as a negotiation tactic
• All other factors being equal, a used manual car will prove more reliable in the long run, helping secure higher resale values
• Used AMT cars are cheaper to purchase and own than regular automatics, leading to them holding value relatively well

Correlation Between Fuel Types and Transmission Types

When it comes to the correlation between fuel type and transmission, there’s a clear link in terms of cost yet again, even in the pre owned market. Petrol manual cars are the most affordable to buy, run and own, while used diesel automatic cars are the most expensive to buy and service. Diesel cars tend to be more frugal, and diesel automatics can still offer great fuel efficiency versus petrol counterparts.

Petrol:

An overwhelming majority of used petrol cars in Delhi are equipped with manual transmissions. Demand for used automatic petrol cars has increased since the previous year, likely due to rising traffic congestion. 

Diesel: 

Similarly, most used diesel cars in Delhi are manual. Demand for diesel automatics has shown an increase over previous years but it is a nominal increase. This could be attributed to less supply in the used market as well.

Body Types and Transmission Types: The Correlation

Over 55% of used car sales in Delhi were made up of hatchbacks, with sedans at nearly 25% and SUVs just over 20%. What’s interesting is that the share of SUVs has gone up from about 17% last year, largely at the cost of the used sedan market share. At the same time, there was highest automatic uptake in the secondhand sedan market, closely followed by automatic SUVs.

Hatchbacks: 

Unsurprisingly, manual transmissions dominate used hatchback sales in Delhi. The hatchback market is much more price sensitive in nature, so buyers gravitate towards the more affordable options even in upper hatchback segments. 

That said, AMT hatchbacks are making a case for themselves, especially for beginner drivers. This is because they are relatively close to manual hatchbacks in terms of purchase price and operating costs.

Sedans:

Though manual sedans outsell automatics greatly, the overall share of used sedans is dropping. At the same time, automatic sedans are going up in popularity due to ease of use and premium positioning at more attainable prices in the used market. 

SUVs:

SUVs are the largest gainer in Delhi’s used car market, with market penetration going up across the board. Automatic SUVs are also proving to be popular, in much the same way as automatic sedans are. 

Reasons Behind Used Manual Transmission Vehicles Being More Popular in Delhi?

There are a few reasons why used manual cars remain the popular choice in Delhi despite rising traffic congestion, as is the case in many cities across the country. 

• Used manual cars present a lower purchase price up front and lower running costs throughout ownership
• Manual cars provide better fuel efficiency and cost less to maintain and repair over the long term
• Manual cars hold their value better in the used market with lower depreciation rates
• A wider range of manual cars available across body styles and fuel types

Should You Opt for an Automatic Transmission?

If you value ease of driving above all else, then an automatic transmission car can be exactly what you’re looking for. With no need to manually depress a clutch pedal and shift gears, an automatic car greatly improves driving comfort, especially in city traffic.

On the other hand, the main disadvantages of automatic cars relate to cost: higher upfront cost, lower fuel efficiency and higher ownership costs. To some extent, AMT cars help bridge the gap in all respects, though the shifting action may not be as smooth as conventional automatics.

Most Popular Used Cars in Delhi, Transmission Wise:

Delhi shows a very high preference for manual cars in the used market. Three of the top selling secondhand manual cars in Delhi are hatchbacks, while only two of the top selling automatic cars in Delhi are hatches. The Maruti Suzuki Swift is the most popular used manual car in Delhi, while the Honda City is the most popular used automatic car in Delhi.

Manual Cars:

Delhi likes its hatchbacks but compact sedans and sedans aren’t far behind, with the Maruti Suzuki Swift Dzire and Honda City still making it to the list of top five used manual cars in Delhi. 

Automatic Cars:

Interestingly, the list of top selling used automatic cars in Delhi presents a different story, led by the Honda City sedan and the Hyundai Creta at a little over half its share. These are premium cars and have a much higher uptake than the AMT-equipped hatchbacks on the list. 

Conclusion

The used car market in Delhi seems to unanimously prefer manual transmission cars. The reasons for this are many despite the added convenience automatics bring. The lower running costs of manual cars often offsets the ease of use of an automatic, especially in price-sensitive segments such as the hatchback market. 

In more premium segments, such as the sedan and SUV segment, we can see a higher uptake of automatics thanks to depreciation putting these cars within reach. The share of automatics is also on the rise. What this means is that as the purchasing power of the used car buyer in Delhi increases, so does the preference for ease of use over outright running costs.