Transmission Trends in 2024: The Rise of Automatic Cars in the Used Market

The Indian used car market is constantly evolving and growing at a rapid rate. While petrol and diesel options are plentiful, used manual transmission vehicles have so far dominated thanks to their affordability, efficiency, and lower maintenance costs. However, a closer look at recent data shows a gradual but definite shift toward automatic transmissions. With convenience becoming a leading factor in car-buying decisions, second hand automatic vehicles are becoming the norm more than the exception.

With that said, manual transmission cars still hold the majority, as our used car sales report suggests. But there is no denying the appeal behind automatic transmission cars is on the rise, and for very good reasons. In this article, we will dive into the numbers and explore the factors behind this evolution.

Transmission Trends over the Years: Are Automatics taking over?

In order to get a better understanding of whether used automatic cars are truly taking over, we did an analysis of used car market data from 2021 to 2024, and our findings revealed the following.

Key Takeaways from the Data

• The share of automatic cars in the used car market has risen from 6% in 2021 to 9% in 2024.
• SUVs have seen the highest growth, with 12% of used SUVs in 2024 being automatic, up from 6% in 2021.
• Sedans have maintained a steady rise, reaching 11% in 2024, showing demand for comfort and ease of driving.
• Hatchbacks still favour manual transmissions, but automatics have grown from 5% to 8% over four years.

How Transmission Type Affects Resale Value in India

Transmission choice significantly impacts resale value, with second hand manual cars generally retaining higher resale value due to their widespread preference. However, the increasing demand for automatics in cities is changing this trend.

• Manual cars still dominate rural and semi-urban markets, where buyers prioritise lower costs and better fuel efficiency.
• Automatic cars fetch higher resale prices in urban areas, particularly for brands that offer well-accepted automatic gearboxes (like Hyundai’s AMT, Honda’s CVT, and Maruti Suzuki’s AGS models).
• Certain discontinued models with automatic transmissions, like the used Ford EcoSport AT, continue to hold value due to their reliability and demand.

As automatics become more common, their resale value is likely to improve, reducing the gap between manual and automatic second-hand prices.

Reasons behind Automatic transmissions’ increasing popularity

Several key factors are driving the growing preference for automatic cars in the second hand market.

1. Convenience and Ease of Driving

• Indian cities are experiencing worsening traffic conditions, making automatic cars more desirable.
• No clutch operation and smooth gear shifts reduce driver fatigue, especially in stop-and-go traffic.

2. Changing Buyer Demographics

• First-time car buyers and younger drivers prefer automatics for their ease of use.
• Women car buyers increasingly opt for automatics due to their hassle-free driving experience.

3. Expanding Urban Landscape

• India’s growing metro cities have a rising number of professionals who prefer automatics for daily commutes.
• Parking and narrow city roads make automatics a more practical option than manuals.

4. Availability of Affordable Automatic Variants

• Maruti Suzuki, Hyundai, and Tata Motors have introduced budget-friendly AMT (Automated Manual Transmission) models, making automatics accessible.
• Previously, automatic cars were limited to premium models, but now even entry-level cars like the Maruti Suzuki Alto and used Hyundai Santro offer automatic options.

5. Rising Disposable Incomes and Premium Preferences

• More buyers are willing to spend on convenience, even if it’s a used vehicle, as disposable incomes increase in urban India.
• Luxury car buyers prefer automatics, making premium brands like Mercedes-Benz, BMW, and Audi almost entirely automatic-driven.

6. Improved Fuel Efficiency in Modern Automatics

• Earlier automatic cars had poor mileage, discouraging buyers.
• Newer AMT, DCT, and CVT gearboxes offer efficiency comparable to manual cars (and in some cases, better efficiency), reducing the mileage gap.

These factors collectively contribute to the increasing adoption of automatics, making them an attractive option in the used car market.
 

Most popular Used Automatic cars in 2024

As automatic transmissions gain traction in India’s used car market, some models stand out as the top-selling used automatic cars in 2024. Based on nationwide data, the Honda City, Maruti Suzuki Celerio, and Renault Kwid emerged as the most popular choices among used automatic vehicles.

• Honda City (7.0% AT Market Share): The second hand Honda City leads the segment, reflecting its premium appeal, smooth CVT gearbox, and comfortable ride quality. In fact, the Honda City was also the best selling used sedan in the country in 2024. 
• Maruti Suzuki Celerio (5.5% AT Market Share): The old Maruti Suzuki Celerio AMT variant is a budget-friendly automatic option, making it a favourite among city commuters and first-time car buyers. 
• Renault Kwid (4.7% AT Market Share): The pre owned Renault Kwid AMT version is a popular choice in the entry-level segment, appealing to urban drivers looking for a stylish, low-maintenance, and fuel-efficient hatchback with automatic convenience.

These rankings highlight buyer preferences across different segments, with premium sedans, mid range hatchbacks, and entry-level automatics all finding strong demand in the second hand market. The trend also indicates that automatics are no longer limited to luxury cars, with affordable AMTs making them accessible to a wider audience.

Manual vs Automatic: What buyers should consider

While automatic cars are gaining popularity, manual transmission vehicles still dominate the market due to their advantages in fuel efficiency, cost, and driving control. Here's a comparison of manual and automatic transmissions to help buyers make an informed choice.

When Should You Choose a Manual Car?

• If you prefer full control over gear shifts and enjoy an engaging drive.
• If fuel efficiency and affordability are your primary concerns.
• If you frequently drive in rural or highway conditions, where manuals perform better.

When Should You Choose an Automatic Car?

• If you primarily drive in urban traffic, where convenience is key.
• If you want a stress-free driving experience without frequent gear changes.
• If you're willing to pay a slight premium for added comfort and ease of driving.

Conclusion

The Indian used car market is gradually embracing automatic transmissions, with their market share increasing from 6% in 2021 to 9% in 2024. While manuals still hold the majority, automatics are becoming a preferred choice for city drivers and younger buyers.

Convenience, urban traffic conditions, rising disposable incomes, and improved fuel efficiency in modern automatic cars are key reasons for this shift. The introduction of affordable AMT and CVT options by mainstream brands has further accelerated adoption.

For buyers considering a used car, the choice between manual and automatic depends on driving conditions, budget, and personal preferences. Manual cars offer better control and cost savings, while automatics provide unmatched convenience for urban commuters. With growing acceptance, automatic cars are expected to continue rising in popularity in India's second hand car market.