The domestic passenger vehicle market is standing on the edge of a massive mechanical transition. According to Ashish Gupta, Brand Director of Skoda Auto India, the overwhelming preference for traditional manual gearboxes is fading fast.
He projects that within the next decade, a staggering 70 to 80 percent of all new cars sold will feature an automatic transmission. This rapid shift highlights a major change in how consumers approach their daily commute and what they expect from a modern vehicle.
Historically, manual transmissions dominated the sales charts due to their lower initial cost, perceived fuel efficiency advantage, and cheaper maintenance. However, this mindset is changing rapidly.
The primary catalyst for this shift is the worsening traffic conditions across major metropolitan cities. Buyers simply do not want to deal with the physical fatigue of constantly operating a heavy clutch pedal in bumper-to-bumper traffic.
While the broader passenger vehicle industry currently sees automatics accounting for roughly 35 to 40 percent of total sales, premium manufacturers are experiencing a much higher adoption rate.
For Skoda, automatic variants already contribute to nearly 65 percent of its total sales volume. The company expects this number to climb further as automatic options become more accessible across lower price brackets.
One of the biggest hurdles for automatic adoption in the past was the significant drop in fuel economy compared to manual counterparts. Modern engineering has entirely eliminated this concern.
The latest automatic gearboxes, including smooth torque converters and rapid shifting dual clutch units, are now just as fuel efficient as manual transmissions. In certain driving conditions, they even deliver superior mileage.
Furthermore, the long term reliability of these complex gearboxes has improved drastically over the years. Modern automatic transmissions are much easier to maintain, and the failure rates have dropped to negligible levels.
Buyers are now far more confident investing their money in an automatic vehicle without fearing expensive repair bills after the standard warranty period expires.
To capture this massive market shift, automakers are aggressively adjusting their product strategies. Skoda is actively working to make clutchless driving more accessible to the masses. The company will soon introduce an 8 speed torque converter automatic gearbox even in its most affordable car – the Kylaq. This move aims to attract first time automatic buyers who would have otherwise settled for a basic automated manual transmission from a rival brand.
For buyers seeking higher performance, the brand continues to offer its highly advanced 7 speed direct shift gearbox on premium models like the Slavia sedan and the Kushaq midsize SUV. By offering multiple automatic options across different price points, the automaker intends to establish itself as the default choice for buyers seeking refined driving experiences.
This sharp focus on consumer demands arrives at a crucial time for the brand. Skoda Auto India recorded a massive 107 percent year on year growth in 2025, dispatching 72,665 units compared to the 35,166 units sold in 2024. This phenomenal performance was driven largely by the heavy localisation strategy implemented under its core business roadmap.
The Kylaq SUV currently boasts a localisation level of over 90 percent, allowing the company to keep input costs low and retail prices highly competitive. This same approach is now being applied to older models like the Kushaq and Slavia, which have moved from 75 percent to nearly 90 percent localisation. While the broader automotive industry is expected to see a moderate 4 to 5 percent growth in 2026, the brand aims to outpace the market by targeting a solid 10 to 12 percent volume expansion in the ongoing year.
Via ACP
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