Manual transmissions continue to dominate India’s used-car market, supported by lower ownership costs, familiarity and stronger resale demand, even as younger customers, women buyers and motorists in major cities show a growing preference for automatics, according to the Cars24 x Team-BHP Gears of Growth 2025 Report.
The report, based entirely on Cars24’s first-party transaction data as of December 2025, indicates that automatics have reached a 28% share of used-car transactions on the platform. The figure suggests that while the clutch pedal is far from retirement in India, its once-comfortable lead is gradually being challenged.
Buyer preferences vary sharply by age, gender and geography.
Buyers under 35 show a higher preference for automatics than the overall average, while customers aged 35 to 45 have a more evenly divided preference, with no clear tilt toward either transmission type.
Among buyers 45 and older, the preference remains strongly in favour of manual cars.
The report also finds a higher-than-average preference for automatics among women buyers. Men remain more heavily inclined towards manuals, although automatic adoption among them is rising.
Geography creates an even clearer divide. Metro markets have a significantly higher share of automatic cars, while manuals continue to dominate demand in non-metro markets.
Why manuals continue to lead
The report identifies three principal factors keeping manual cars ahead: cost, familiarity and resale potential.
Used manual cars are generally cheaper to purchase and maintain, making them particularly attractive in value-conscious non-metro markets, which account for a substantial portion of used-car demand.
Familiarity also matters. A large number of Indian motorists learned to drive in manual cars, and first-time used-car buyers often prefer a transmission they already know how to operate.
Resale is another advantage. Because manuals appeal to buyers across a wider range of cities and towns, they potentially have a broader resale market when owners decide to sell.
The transmission preference is also reflected in the models popular across different markets.
According to the report, cars such as the Maruti Baleno and Honda City perform strongly in metropolitan markets, where buyers are more receptive to newer model years and convenience-oriented features, including automatic gearboxes.
Outside the metros, demand is concentrated more heavily around comparatively simple and affordable models such as the used Swift Dzire, Wagon R, i10, Grand i10 and Alto, with most transactions involving manual variants.
Traffic is giving automatics a helping hand
The shift towards automatics is being driven largely by changing driving conditions and lifestyles.
The report points to worsening traffic congestion, convenience and evolving customer preferences as key factors encouraging buyers to move away from manuals.
For motorists dealing with daily stop-start traffic in cities such as Bengaluru or Mumbai, eliminating constant clutch operation can make an automatic considerably more appealing. After enough bumper-to-bumper commuting, even committed manual enthusiasts may begin negotiating with their left leg.
Younger buyers are particularly important to this transition.
As vehicles originally purchased new with automatic transmissions over the past several years enter the resale market, the supply of used automatics is also increasing. The report therefore suggests the current 28% share may represent an early stage of a broader shift rather than a fixed ceiling.
Used automatics bring a different ownership risk
Automatic transmissions, however, introduce an additional consideration for used-car buyers: repair costs.
A conventional manual gearbox and clutch are mechanically simpler to inspect and generally less expensive to repair. Automatic transmissions — whether torque converters, AMTs, CVTs or dual-clutch units — can be more complicated to assess and substantially costlier to rebuild if something goes wrong.
That makes a vehicle’s service history, pre-purchase inspection and warranty coverage particularly important when purchasing a used automatic.
Cars24 says its vehicles undergo a 300-point inspection, including checks covering transmission operation, as part of an inspection process lasting more than 10 hours per car. The company says this process has been refined across more than 1 crore inspections since 2015.
According to Cars24, every car purchased through its platform also carries a 30-day repair assurance, with transmission repairs covered without a deductible, while the transmission is included under its lifetime warranty cover.
Those provisions are company-specific claims and should be considered alongside the exact warranty terms applicable to an individual vehicle.
Manual or automatic: which makes more sense?
The report does not point to one transmission as the correct choice for every buyer.
For motorists spending much of their time in dense, stop-start city traffic, the added convenience of an automatic may justify its higher purchase price.
Manuals, meanwhile, remain a practical choice for customers focused on the lowest possible acquisition and running costs, those travelling extensively on highways or outside major cities, and buyers who value access to the widest possible selection in the used-car market.
Inspection deserves particular attention when considering an automatic. A worn clutch in a manual is generally a familiar and comparatively routine repair; a major automatic transmission problem can involve a much larger bill.
The changing transmission mix ultimately reflects a broader evolution in India’s car market. Manuals continue to benefit from affordability, familiarity and their nationwide buyer base, while automatics are increasingly being pulled into the mainstream by urban traffic, younger customers and expanding supply. For now, India’s used-car market has not abandoned the gear lever — it is simply becoming less certain that every driver wants to move it themselves.
Data note: All figures are drawn from the Cars24 x Team-BHP Gears of Growth 2025 Report, based entirely on Cars24 first-party transaction data as of December 2025. Transmission preference refers to the manual-automatic split of used-car transactions on the platform. The report uses no external data sources, and its figures are proprietary to Cars24.
