However, the report reveals that this overall figure masks a significant shift in buyer preferences across different age groups, genders and regions. Transmission choices analysed by demographic segments consistently show that while manuals remain the majority preference, demand for automatics is steadily increasing.
Among buyers under the age of 35, preference for automatic transmissions is higher than the market average. Buyers aged over 45 continue to strongly favour manual gearboxes, while those between 35 and 45 display no clear preference for either transmission. The findings indicate that younger buyers are increasingly choosing automatics, suggesting the market could gradually shift further in that direction as this demographic reaches its peak earning years.
The report also highlights notable differences based on gender. Women buyers demonstrate a higher-than-average preference for automatic vehicles, while men continue to favour manuals. At the same time, automatic adoption among male buyers is also rising.
Regional trends reinforce the same pattern. Metro markets record a significantly higher share of automatic transmission sales, whereas non-metro markets remain firmly dominated by manual vehicles.
According to the report, three primary factors continue to sustain the popularity of manual cars. Cost remains the biggest advantage, with used manual vehicles generally being less expensive to purchase and maintain. This aligns with the value-conscious buying behaviour seen across non-metro markets, which account for the majority of demand.
Familiarity is another major factor. Most Indian drivers initially learned to drive manual vehicles, prompting many first-time used car buyers to choose a transmission they already know how to operate.
Resale value also plays an important role. Manual cars appeal to a broader pool of buyers across the country, making them easier and faster to sell when owners decide to upgrade or replace their vehicles.
The report links the higher automatic share in metro cities to the popularity of models such as the Maruti Baleno and the Honda City. These vehicles perform strongly in urban markets partly because city buyers are more willing to purchase newer model years equipped with convenience features, including automatic gearboxes.
Outside metropolitan areas, demand remains concentrated on vehicles designed to be affordable and practical. Models such as the used Maruti Swift Dzire, Wagon R, Hyundai i10, Grand i10 and Alto continue to sell predominantly with manual transmissions.
The report attributes the gradual rise in automatic demand to changing driving conditions and lifestyles. Increasing traffic congestion, greater emphasis on driving convenience and evolving consumer preferences are encouraging more buyers to consider automatic vehicles. Daily commuting in heavily congested cities such as Bengaluru and Mumbai has further strengthened the appeal of clutch-free driving.
Younger buyers are leading this transition, and as the automatic vehicles they purchased new in recent years enter the resale market, the supply of used automatic cars is expected to expand. According to the report, the current 28 percent market share appears more like the beginning of a longer trend than a final limit.
Despite their growing popularity, automatic transmissions continue to raise concerns among used car buyers because they are more complex and expensive to repair than manual gearboxes. While a manual transmission and clutch are relatively simple to inspect and repair, automatic systems—including torque converter, Automated Manual Transmission (AMT), Continuously Variable Transmission (CVT) and dual-clutch units—are significantly harder to assess and considerably more expensive to rebuild if faults develop.
The report notes that buyers often fear purchasing an automatic vehicle that performs well during a test drive but later develops costly transmission problems that would not have been apparent during a short inspection.
To address these concerns, the report highlights the importance of comprehensive vehicle inspections and warranty coverage, particularly for automatic cars. Cars24 states that its 300-point inspection process evaluates complete transmission operation over a testing procedure lasting more than 10 hours per vehicle. The company says this process has been refined through more than 1 crore inspections conducted since 2015.
According to Cars24, every vehicle purchased through its platform includes a 30-day repair assurance covering the transmission without any deductible. The transmission is also covered under the company's lifetime warranty, reducing the financial risk associated with purchasing a used automatic vehicle.
The report concludes that there is no universal choice between manual and automatic transmissions, with the decision depending largely on individual driving habits. Buyers who regularly encounter stop-and-go city traffic may find the additional cost of an automatic worthwhile because of the added driving comfort. Meanwhile, motorists who frequently travel on highways, drive primarily outside metropolitan areas, or prioritise lower running costs and easier resale may continue to find manual vehicles the more practical option.
It also advises buyers considering an automatic vehicle to place greater emphasis on inspection reports and warranty coverage than they would with a manual car. While replacing a worn manual clutch is generally an affordable repair, transmission failures in automatic vehicles can be substantially more expensive, making thorough inspection and warranty protection particularly valuable.
The report notes that all figures presented are based exclusively on Cars24's Gears of Growth 2025 report, which uses Cars24 first-party transaction data as of December 2025. Transmission preference refers to the manual and automatic split of used car transactions on the platform, with no external data sources used.
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