Updated 18:46 IST, February 4th 2025
Automatic Cars Selling More - What Does It Mean For Manual Vehicles?
Leveraging on the consumers' shift, many carmakers are expanding their portfolio of automatic variants.

In a market once dominated by manual transmission vehicles, carmakers are increasingly shifting their focus to automatic transmission variants, betting on a future where convenience and efficiency reign supreme. With advancements in technology, changing consumer preferences, and a growing emphasis on electric and hybrid vehicles, automatic transmissions are becoming the preferred choice for manufacturers and buyers alike.
The Rise of Automatic Transmissions
The global automotive industry has seen a sharp increase in the adoption of automatic transmission systems over the past decade. In markets such as the United States and China, automatics already account for the majority of car sales. Of late, traditionally manual-heavy markets like India and parts of Europe are catching up, with automatics now constituting a significant share of new car purchases.
Industry experts attribute this trend to several factors, including urbanization, traffic congestion, and a growing demographic of younger, tech-savvy consumers.
As Ravi Bhatia from JATO Dynamics, an automotive data intelligence firm, puts it, “Many people find automatic transmissions easier to use, especially those who are not familiar with manual transmissions or prefer a simpler driving experience."
As per the data collated by JATO Dynamics India, the proportion of Automatic Transmission (AT) variants in total Internal Combustion Engine (ICE) passenger vehicle (PV) sales has gone up from 16.8 percent in 2020 to 26.70 percent by 2023 and has to 28.3 percent by 2024-end.
According to Auto retail body Federation of Automobile Dealers Associations of India (FADA), automatic transmission vehicles contributed just 15 percent of PV retail sales in 2019 and the proportion may rise further to 45 percent (including EVs) in the next four years.
Technology Driving the Shift
Over the last few years, carmakers have introduced a range of transmission technologies, including Continuously Variable Transmissions (CVTs), Dual-Clutch Transmissions (DCTs), and even intelligent automated manual transmissions (AMTs). These systems are designed to deliver better fuel efficiency, smoother rides, and lower emissions, addressing some of the concerns that previously held many buyers back.
Electric vehicles (EVs) and hybrids, which are inherently automatic, are also playing a crucial role in the transition. As the EV market expands, consumers are growing accustomed to driving without a clutch pedal, further reducing the appeal of manual transmissions, as per industry players.
“Considering congestions and rising traffic issues, buying automatics is not a choice but a need for consumers,” says Puneet Gupta, Director, S&P Global Mobility. He added, “Today’s buyers want cars that are easy to drive and offer a seamless experience, and automatics deliver that."
Carmakers Double Down
Leveraging on the consumers' shift, many carmakers are expanding their portfolio of automatic variants. In India, for instance, companies like Maruti Suzuki , Hyundai, and Tata Motors are rolling out affordable automatic options for budget-conscious buyers.
Passenger Vehicle (PV) market leader Maruti Suzuki India Limited (MSIL) is aiming to double the share of non-manuals from 14 percent in 2018-19 to 30 percent to total sales by fiscal end. Last year, the company reduced the prices of its AMT version of its models such as the Alto K10, S-Presso, Celerio, Wagon-R, Swift, Dzire, Baleno, Fronx, and Ignis.
“We have discerned that while the models sold at Nexa outlets (like Grand Vitara, Jimny, Baleno. Ciaz), the penetration of automatic cars is 20 percent, it is just 10 percent for the ones at Arena showrooms. Therefore, we went for some price rationalisation in order to take the share of automatics up for affordable models,” said Partho Banerjee, Senior Executive Officer, MSIL.
For Hyundai Motor India Limited (HMIL), the share of automatic variants went up from 18 percent in Calender Year 2021 to 25 percent of its total sales (including Evs) in 2024.
“Due to the bouquets of automatics in our lineup, the traction will keep on going up. We expect one fourth of our total sales from automatic and semi-automatic cars by the end of this fiscal,” stated Tarun Garg, COO, Hyundai Motor India Ltd. He added, “The penetration remains strong in most regions of India, with high double digit AT percentage witnessed in seven out of the top 10 regions.”
Tata Motors, which offers automatic transmission options across its entire portfolio and fuel types, derived 22 percent of its total ICEV sales from including AMT, DCA, and Torque Converter variants in FY 2023-24.
“We are witnessing a steady increase in demand for vehicles with automatic transmissions. We anticipate this growth trend to continue, driven by factors such as ease of drivability in heavy traffic, increased convenience compared to manual transmissions, and the availability of transmission options that were once exclusive to luxury vehicles,” stated Tata Motors spokesperson.
Challenges and the Road Ahead
While the adoption of automatics is on the rise, challenges remain. In certain pockets of India, manual transmissions continue to be associated with better performance and control, particularly among driving enthusiasts. Additionally, automatics often come with a slightly higher price tag, which can deter cost-sensitive buyers.
As cities become more congested and consumers prioritize convenience, the automatic transmission revolution is set to accelerate further. For carmakers, the message is clear: adapt or risk being left in the dust.
Published 19:21 IST, February 3rd 2025