Manual or Automatic: Which Transmission Drives Used Cars In Chennai?

Manual cars drive both the new and used car market in India. That said, the demand for automatic cars is experiencing a consistent increase. According to CARS24 data, automatic cars accounted for 14.7% of used car sales in India. 

Chennai’s used car sales showed a higher-than-average number of automatic cars sold in 2024, despite Tamil Nadu accounting for only 6.1% of used car sales in India. This is a common theme with most metro cities, owing to increasing traffic. Here, we take a detailed look at manual and automatic transmission trends in Chennai. 

Used Car Transmission Trends in Chennai: Automatics Grow Steadily

Using data from the CARS24 Gears of Growth report and sales records, we can summarize transmission trends in Chennai.

Key Takeaways From The Data

• Chennai has a higher preference for used manual cars. 
• Buyers prefer manuals because they have a lower buying price, lower running costs, and lower maintenance costs than automatic cars. 
• However, automatic cars are gradually gaining market share in the used car market. 
• The primary reason for this is the convenience offered by automatic cars while driving in traffic. 
• Automated Manual Transmissions (AMT) are gaining popularity due to their lower price, better fuel efficiency and affordable maintenance. 

Do Transmission Types Affect Resale Value In Chennai?

Transmission has a huge influence on both new and used car buying decisions. It ranks high among other factors such as body type, fuel type, affordability, fuel efficiency and maintenance costs. Here are key pointers on how transmission preferences affect resale values in Chennai:

• Manual cars feature a high demand in the used car market which leads to high resale value. 
• Buyers seek manual cars thanks to their low purchase price, low running and maintenance costs, better fuel efficiency and better reliability. 
• With rising traffic, more used car buyers have started to prefer automatic cars for their comfort and ease of driving. 
• Among automatics, buyers prefer AMT the most thanks to its low pricing and fantastic fuel efficiency. 

Fuel Types and Transmission Types: The Correlation

Petrol and diesel cars are available with both manual and automatic transmission options. However, CNG fueled cars are almost exclusively available with a manual transmission with a handful of CNG automatics on sale. While automatic CNG cars have been rare, some models, such as the Tata Tiago and Tigor CNG AMT, have recently entered the market.

Petrol:

A majority of used petrol cars in Chennai use manual transmissions. However, the city is experiencing a steady demand for used automatic petrol cars. The increasing traffic in Chennai contributes to this rise. 

Diesel: 

Like petrol, a majority of used cars sold in Chennai feature manual transmissions. Also, like petrol cars, the demand for diesel automatic cars is on the rise as well. 

Body Types and Transmission Types: The Correlation

Hatchbacks constitute the majority of Chennai’s used car ecosystem. However, the city also has a healthy mix of sedans and SUVs. In fact, while the demand for hatchbacks and sedans is decreasing, used SUVs are witnessing a significant increase in popularity

Hatchbacks: 

An overwhelming majority of used hatchbacks in Chennai feature manual gearboxes. While used car buyers prefer the bodystyle for its compact nature and affordable buying price, they prefer manual transmissions for their fuel efficiency and reliability. Automatic hatchbacks enjoy a healthy share despite the low volumes of diesel and CNG automatic hatchbacks, and are gaining popularity. 

Sedans:

While manual sedans constitute the majority, automatic sedans also are popular. This is due to comfort and convenience being a major influencer when it comes to buying a used sedan. Surprisingly though, the demand for used automatic sedans is going down. 

SUVs:

Diesel manual SUVs remain popular in Chennai’s used car market. However, automatic SUVs have a higher acceptance ratio of automatic transmissions. Also, automatic SUVs are rapidly gaining popularity. 

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

Used manual cars in Chennai are popular for many reasons. Here are some of the important ones:

• Manual cars are primarily bought for their low purchase price and low running costs. 
• Manual gearboxes are more fuel efficient and reliable while being cheaper to repair and service. 
• Manual cars depreciate slower and offer better resale value. 
• Manual cars cover a wider range of fuels like petrol, diesel and CNG. 

Should You Opt for an Automatic Transmission?

The main advantage of an automatic transmission is the absence of a clutch pedal, which makes driving easier. Also automatic cars are more relaxing to drive, especially in slow moving traffic. 

The disadvantages of automatic cars is the higher initial purchase price and higher running costs. Also automatics offer less mileage than manual cars. That said, most modern AMTs offer comparable, and in some cases, better fuel efficiency than manuals. It makes sense to invest in an automatic car if you mostly drive in heavy traffic in the city. 

Most Popular Used Cars in Chennai, Transmission Wise:

Chennai has a high percentage of manual cars. That said, demand for automatic cars is rising, especially for used SUVs. The Maruti Suzuki Swift is the most popular manual transmission equipped used car sold in Chennai while the Celerio is the most popular used automatic car.

Manual Cars:

Chennai’s heavy traffic means hatchbacks are the most popular body types in the city. Used car buyers have a preference for premiumness as evidenced by the Hyundai i20 featuring third on the best selling manual cars list while the Honda City comes fifth. 

Automatic Cars:

When it comes to automatic cars, the Maruti Suzuki Celerio tops the list while the Honda City comes second. Interestingly, cars like the Renault Kwid and Hyundai Grand i10 are also included on the list. The dominance of automatic hatchbacks shows these used car buyer’s affinity for practicality and convenience. 

Used car buyers in Chennai highly rate practicality, convenience and comfort in their buying decisions. The increasing traffic chaos is a major reason why buyers prefer automatic hatchbacks. 

Conclusion:

Used car buyers prefer manual cars for their low running costs and fuel efficiency. That said, modern automatic cars are becoming more comparable to manual vehicles in terms of practicality. The rising traffic situation in Chennai is a major reason for both new and used car buyers starting to prefer automatic cars. 

While automatic cars are easy to drive and more comfortable, manual cars are more popular as they are cheaper to buy, run and maintain. While automatic cars are catching up, manual cars will continue to dominate Chennai’s used car landscape for years to come.