AUTO PUNDITZ
  • Team Auto Punditz

Automatic Transmission: Grow their market share in Used Car space.


Interest for pre-programmed is a 50:50 share between the subway and non-subway markets.


Urban communities such as Jaipur, Indore, Coimbatore, Mangalore, and Ahmedabad and Warangal are very large programmable transmission markets near Delhi-NCR, Chennai, Bengaluru, Pune, Mumbai, and Hyderabad.


According to a report from online shopping mall Droom, more than 33% of all vehicles previously sold were programmed transmission vehicles. According to him, the choice of programmed transmission has increased dramatically from 17% in 2016 to 37% in 2020, higher than the new vehicle market of 20%. The review report uses an estimated size of 1.1 billion guests, 20,000 car dealerships, and 3.2 car rental companies.


“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 the 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 Droom founder-CEO Sandeep Aggarwal.


Interest for pre-programmed is a 50:50 share between the subway and non-subway markets. Urban communities such as Jaipur, Indore, Coimbatore, Mangalore, and Ahmedabad and Warangal are very large programmable transmission markets near Delhi-NCR, Chennai, Bengaluru, Pune, Mumbai, and Hyderabad.

“The demand is across metros as well as tier-1 and -2 cities and is pronounced in sedans in the lakh price range. For SUVs though, demand remains strong in manual transmission, largely due to limited availability of automatic transmission vehicles available for exchange or sale by customers,” said Ashutosh Pandey, CEO of Mahindra First Choice Wheels, who found that 25% of transactions were in programmed vehicles.


The difference in value between new and old preprogrammed models is 30-40% depending on the age of the vehicle. Effective online dealers of their vehicles are very enthusiastic about this part. “We buy 10% automatic cars and this has grown year-on-year. In the coming years, we expect a double-digit growth from automatic used cars,” said Kunal Mundra, CEO (Cars in India) at Cars24.