Automatics growing in popularity, still have only 7% share

The Indian car industry is clearly showing an inclination towards cars with automatic transmission. The main reason behind this change in market response lies in the growing traffic woes in all major cities. Moreover, the automatic transmission technology is continuously being improved to make it more affordable and durable. These reasons have cumulatively resulted in a two-fold increase in the number of automatic car sales in 2015, as compared to its preceding year.

Last year, 7% of all new cars sold had expensive automatic transmissions. All new launches that have been given an automatic transmission option are showing a positive response for the AT. To bring things in perspective, half of the total sales of the recently launched Toyota Innova Crysta are that of the automatic variants. Similarly, out of all Hyundai Creta models sold till date, 20% are automatics. Honda too is betting big on the new transmission trend, as automatics account to 23% of the sales of the Jazz and the City. One in every four petrol cars that Honda sells is an automatic.

The introduction of automated manual transmission (AMT) has further given a boost to the rising segment. The Maruti Celerio became popular only because of its AMT option that still serves as its USP in the segment. In terms of sales numbers, 44% of the Celerios sold employ AMTs. Even the Alto K10 and the WagonR are being bought with AMTs, which account to 20% of their overall sales.

Maruti Suzuki offers an AMT gearbox in the Alto K10, WagonR, Celerio, and the Swift DZire. The company’s new premium hatchback, the Maruti Baleno, is offered with a CVT option. Higher in the price bracket, the Ertiga and the Ciaz get conventional ATs. Cumulatively, Maruti Suzuki sold 56,000 automatic cars in FY 15-16, up from 32,000 units in the previous year, thus showing a 75% jump.

Even old automatic cars that have been in the market for a fairly long time have shown an unprecedented sales growth during the last year. While 35% of the Fortuners sold in 2012 were automatics, the full-size SUV now constitutes 50% AT sales. Similarly, sales of the Corolla Altis automatic have jumped from 25% to 50% in the past four years.

Despite the inclination towards automatic transmissions, the Indian car market is still behind many other matured markets like the USA, where automatics constitute 80% of the total car sales.

Source: ET Auto