Tuesday, January 25, 2022

‘Traffic mess may spur demand for automatic transmission’

Today, the automatic transmission option is available in entry level cars.

By: Express News Service |
August 13, 2016 1:47:02 am
Nearly 15% of new car sales by 2020 are likely to have automatic transmission Nearly 15% of new car sales by 2020 are likely to have automatic transmission

Worsening traffic situation in cities coupled with declining cost differential between manual and automatic gearbox has resulted in the rising trend of automatic transmission. Nearly 15% of new car sales by 2020 are likely to have automatic transmission, says Icra.

WHY WOULD IT CLICK
AT (automatic transmission) considerably reduces the fatigue level of the driver during bumper to bumper traffic movement

CURRENT SITUATION
AT has significantly high penetration in the luxury segment (>Rs 30 lakh) but their penetration in the mass segment is quite low

LESS THAN 5%
AT vehicles constitute less than 5% in domestic new vehicle sales (excluding luxury cars) during FY16 but their share may cross 15% in the medium term

SLOW CHANGE IN INDIA
AT is still considered a luxury feature amongst Indian car buyers, though rising awareness and usage of AT in entry-level cars is slowly resulting in improving acceptance/penetration of AT in the domestic PV market. Today, the automatic transmission option is available in entry level cars like Nano and Alto K10, catering to a much wider car audience as compared to the AT option available few years back in the Rs 7 Lakh+ price bracket.

CONCERNS BEING ADDRESED
Concerns related to low fuel efficiency in AT are already addressed by the present technology in AT, with some models with continuous variable transmission (CVT), dual clutch transmission (DCT) or even AMT reporting relatively better fuel efficiency than manual transmission variants.

CONSUMER AWARENESS KEY
OEMs (Original Equipment Manufacturers) have to invest towards consumer awareness to allay these concerns. AMT penetration may increase as it addresses both concerns of fuel efficiency and ownership cost

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest Auto & Travel News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard
Advertisement
Advertisement
Advertisement
X