There Is A Huge Surge In demand for Automatic Transmission Cars In Urban Markets, And Sales Of CVT And AMT Models Have Increased

The demand for automatic transmission (AT) vehicles in India has seen a significant surge, especially in urban markets, with more people opting for comfort and convenience over manual transmission vehicles. Sales of Continuously Variable Transmission (CVT) and Automated Manual Transmission (AMT) cars have increased, highlighting a shift in consumer preferences. As per data from Jato Dynamics, the share of automatic cars in the mass-market vehicle segment has grown to around 26%, compared to just 16% in 2020. This substantial increase reflects the evolving needs of modern drivers facing increasing traffic congestion, particularly in metropolitan areas.

Comfort and Fuel Efficiency Drive Popularity

Automatic transmission cars were once considered a luxury item in India. Still, today, they are becoming mainstream, with people willing to pay a premium for the convenience they offer. The growing adoption of automatic cars can be attributed to several factors, the most significant being ease of driving, particularly in traffic-heavy cities. Unlike manual transmission vehicles, automatic cars eliminate the need for constant gear shifting, which can be tiring in stop-and-go traffic. This feature makes them particularly appealing to drivers in urban and metro areas, where congestion is a daily challenge.

In addition to comfort, automatic cars have significantly improved fuel efficiency. With technological advancements, many automatic transmission systems—such as CVT, AMT, and Dual Clutch Transmission (DCT)—now offer better or comparable fuel efficiency to manual transmission cars. This has further encouraged consumers to consider automatic vehicles, as they no longer have to compromise on fuel economy for convenience.

Rapid Market Expansion

The expanding selection of automatic vehicles contributes to the growing demand. Today, there are 83 models available with automatic transmission options across various price ranges, providing consumers with a broader array of choices than ever before. Leading automakers like Maruti Suzuki, Toyota, Tata Motors, Mahindra & Mahindra, Hyundai, and Kia have recognized the potential of this market segment and are increasingly promoting their AT models to cater to this growing demand.

While earlier automatic transmission options were mostly available in higher-end models, manufacturers are now offering them in mid-range and even entry-level vehicles. This has democratized access to automatic cars, making them more appealing to a broader audience. This trend is evident in the case of brands like Maruti Suzuki and Mahindra, which have localized the production of AMT systems. By manufacturing these systems domestically, they can offer more budget-friendly automatic cars to the mass market.

Honda’s Leadership in the CVT Segment

Honda Motors stands out as one of the key players in the automatic transmission market, particularly with its success in promoting CVT technology. Over 50% of Honda’s total sales in India now come from automatic vehicles, nearly 60% of those being CVT models. This success can be attributed to Honda’s strategy of offering CVT options in premium models and lower variants, thus making automatic cars more accessible to a broader range of consumers.

Honda’s CVT models, such as the Elevate

Amaze are known for their superior fuel efficiency, smooth driving experience, and affordability. The automaker’s diverse lineup caters to a broad demographic, from those seeking economical city cars to those looking for high-performance vehicles with advanced transmission systems like DCT. As a result, Honda has positioned itself as a leader in the automatic transmission segment in India, particularly for those looking for reliable and efficient city cars.

Rising Popularity Across Demographics

The increasing demand for automatic cars is more comprehensive than a specific age group or income class. The convenience of automatic transmission has universal appeal, attracting drivers of all ages and backgrounds. Young professionals living in urban areas, where traffic is often heavy, are particularly drawn to the ease of automatic driving. Meanwhile, older drivers may find manual driving physically demanding and opt for automatic cars.

The growing trend toward automatic cars can also be attributed to rising income levels and increasing urbanization in India. As more people move to cities and urban centers, they seek vehicles that can provide a hassle-free driving experience. This shift in lifestyle, combined with the desire for more comfortable and convenient driving options, is expected to continue fueling the growth of automatic transmission vehicles in the coming years.

Price Difference Shrinking

Despite their advantages, one of the main barriers to their widespread adoption has been the price difference compared to manual transmission vehicles. Automatic cars typically cost between ₹60,000 and ₹2 lakh more than their manual counterparts, which has deterred some cost-conscious buyers. However, as demand grows, this price gap is gradually narrowing.

In particular, manufacturers that have localized the production of automatic transmission systems, such as Maruti Suzuki and Mahindra, can offer more affordable options in the automatic segment. This has led to a rise in the popularity of AMT vehicles, which offer the convenience of an automatic transmission at a lower cost than traditional AT systems like CVT and DCT. As more automakers follow suit and ramp up domestic production, the price difference between automatic and manual cars is expected to decrease further, making automatic cars an even more attractive option for budget-conscious buyers.

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