Are India’s Drivers Ready for Automatic Transmissions?

Manual transmissions are found in 95% of new cars sold in India. But Bloomberg News says demand for automatic gearboxes is rising fast.

The trend is being driven by worsening traffic jams and the fatigue of constant shifting in stop-and-go traffic is driving, analysts tell Bloomberg News. They say a rise in the proportion of women drivers, along with an expanding base of more affluent customers, also contribute.

The ratio of new cars with automatics has doubled over the past two years, but only to 5%, Bloomberg says. That compares with a 95%-plus rate in the U.S. Indian consumers have balked at the higher cost of an automatic, which can hike a car’s price by as much as 120,000 rupees ($1,900).

But now Indian carmakers are poised to make the switch anyway, counting on the convenience of automatics to attract buyers. Market leader Maruti Suzuki India aims to double its proportion of clutchless gearboxes by 2020. Tata Motors’ sales target is 50%.

Bloomberg notes that an expanding market for automatic gearboxes in India also would draw a broader range of global car models, many of which aren’t offered elsewhere with stick-shifts.