Manuals Still Reign in Mumbai’s Used Car Market, but Change Is Coming

Several factors influence the choice of a used car, but deciding between a manual or an automatic transmission is becoming increasingly important—especially in a traffic-heavy city like Mumbai. This is especially true in a market like Mumbai, thanks in no small part to factors like traffic.

The gradual shift in preference is evident nationwide, too: the share of automatics in the used car market rose from 11.8% in 2022 to 14.66% in 2024. While Mumbai’s market sees a similar growth, there is also no denying that used manual cars still dominate, as per our used car sales report. In this article, we will take a closer look at the evolution of preferences in transmission when it comes to used cars in Mumbai, alongside resale value insights and other buying behaviours.

The Preferred Transmission option in Used Cars in Mumbai

Mumbai’s used car market continues to favour manual transmissions, but automatics are slowly gaining ground. The following breakdown highlights the distribution of transmission preferences.

Key Takeaways

• Automatics in Mumbai’s used car market increased from 15.51% in 2023 to 16.96% in 2024, showing a gradual shift.
• Despite this growth, manuals remain dominant, accounting for over 83% of the used car market.
• Buyers prefer manuals due to lower costs, better fuel efficiency in budget cars, and ease of maintenance.
• Automatics are primarily popular among urban commuters seeking convenience in stop-and-go traffic.
• The slow but steady rise in automatics suggests that buyer priorities are shifting, though affordability remains a key factor in decision-making.

The Market Shift Between 2023 and 2024

Mumbai’s used car market has seen a slow but steady transition toward automatic transmissions. While interest in automatics is growing, manuals continue to dominate Mumbai’s used car market.

Key Takeaways

• Automatics have grown by 1.45% in a year, mirroring the national trend.
• While still a minority, automatic sales are increasing due to improved fuel efficiency and growing availability of AMT (Automated Manual Transmission) models.
• Manual cars continue to dominate as they offer higher resale value, better mileage in smaller models, and lower repair costs.
• The increase in automatics is largely driven by urban commuters, who prioritise convenience over cost savings.
• As more affordable automatic models become available, their market share is expected to grow further.

The Effect of Transmission Type on Resale Value in Mumbai

Resale value is a key factor for used car buyers in Mumbai. Manuals retain value better due to their lower maintenance costs and wider availability. Here’s why.

• Higher Demand: Manuals dominate the market, ensuring stronger resale demand.
• Affordability: Buyers in Mumbai prioritise budget-friendly options, making manuals a safer investment.
• Depreciation Concerns: Older automatics depreciate faster due to higher repair costs and potential long-term maintenance issues.
• Consumer Perception: While automatics are easier to drive, they still carry a reputation for being expensive to maintain.
• Long-Term Ownership: Many Mumbai buyers hold onto cars longer, further strengthening the appeal of manuals.
• Ease of Repairs: Manual transmissions are easier to repair, with spare parts more widely available, making them ideal for long-term ownership.
• Shifting Preferences: While manuals currently offer better resale value, improving reliability in newer automatics may reduce the resale gap over time.

How Body Type Affects Transmission Choices in Mumbai

Different body types influence transmission preferences. Here’s how Mumbai’s buyers break it down.

Key Takeaways

Hatchbacks

• Still dominate the used car market, making up over 53% of sales in 2024.
• Second hand manual cars are heavily preferred, as hatchbacks attract budget-conscious buyers.
• AMTs are gaining traction, but adoption remains limited due to cost concerns.
• Hatchbacks with automatic transmissions are typically limited to premium trims, making them less accessible for budget-conscious buyers.
• While automatics are growing, hatchback buyers prioritise low running costs, making manuals the dominant choice.

Sedans

• Account for around 28% of used car sales, making them the second most popular body type.
• Automatics see slightly more demand in sedans, as buyers prioritize driving comfort over cost savings.
• Used manual cars are still prevalent due to fuel efficiency concerns and maintenance costs.
• Buyers in this segment often consider automatics for their ease of driving in city traffic, making them a more attractive option compared to hatchbacks.
• Mid-range sedans are the most common category featuring automatic transmissions in Mumbai’s used car market.

SUVs

• Used SUVs in Mumbai have grown in popularity from 16.45% in 2023 to 19.04% in 2024.
• Automatics are more common in SUVs, especially among mid-range and premium models.
• Buyers looking for long-distance comfort and highway performance lean toward automatics, while manual SUVs remain available in older models.
• The increasing number of automatic SUVs indicates that buyers in this segment are willing to spend more for comfort and performance.
• Many newer SUVs come with automatic-only variants, accelerating their adoption in Mumbai’s used car market.

Why Mumbai Buyers Prefer Manual or Automatic Transmissions

There are a lot of factors that go into deciding between automatic or manual transmissions, and this is applicable to used cars as much as it is for new cars. Several factors influence buyers’ transmission preferences, and understanding them is crucial before making a decision.

• Traffic Conditions: Mumbai’s heavy traffic favours automatics for convenience, but manuals persist due to affordability.
• Budget Constraints: Many buyers prefer manuals due to lower upfront costs and maintenance expenses.
• Resale Considerations: Manuals hold their value better, making them a practical choice for long-term ownership.
• Fuel Efficiency: While automatics are improving, manuals still lead in fuel efficiency among budget-friendly models.
• SUV Growth: Rising SUV sales contribute to a gradual increase in automatic transmission adoption.

Conclusion

Mumbai’s used car market still leans heavily toward manual transmissions, but automatics are gaining slow momentum. While increasing congestion and better fuel efficiency in automatics are driving their growth, manuals remain the preferred choice due to cost considerations, resale value, and widespread availability. Buyers continue to prioritise affordability, and manual cars still offer the best balance between purchase price, maintenance costs, and fuel efficiency. That said, the gradual rise in automatic transmission sales indicates that buyer preferences are slowly shifting.

As automatic technology continues to improve and become more affordable, Mumbai’s used car market will likely see further adoption of automatics in the coming years. The rise in AMT-equipped budget models, combined with the increasing popularity of automatic SUVs, suggests that automatics will play a larger role in the future. However, unless there is a significant drop in automatic transmission costs and maintenance expenses, manuals are expected to remain the dominant choice in Mumbai for the foreseeable future.