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Ease of Vehicle Ownership Index: Mapping State-wise Disparities in Used Vehicle Transfers

Nov. 10, 2026

Why in news?

India’s pre-owned vehicle market is booming, with used cars expected to outsell new ones at a ratio of 1.7:1 by 2030. Yet, complex and inconsistent state-level rules often force buyers and sellers to depend on costly intermediaries for ownership transfer.

A new report — the Ease of Vehicle Ownership Index (EVOI) — released by Minister of State for Road Transport and Highways recently, reveals stark disparities across states in how easily vehicles can be bought, sold, or transferred.

What’s in Today’s Article?

  • What the EVOI Report Says?
  • How States Were Evaluated?
  • The Core Problem: Hidden Costs
  • Market Size and Trends
  • Proposed Solutions

What the EVOI Report Says?

  • Prepared by IndiaTech.org (startup industry body) in partnership with Consumer VOICE.
  • Covers 15 states, accounting for over 85% of India’s organised used-car market.
  • Rankings (out of 10):
    • Andhra Pradesh: 5.91 (highest)
    • Kerala: 5.74
    • Delhi & Tamil Nadu: 4.58 (tied)
    • Karnataka, Gujarat, Madhya Pradesh, Maharashtra, Telangana, Punjab, Rajasthan, Haryana follow
    • West Bengal: 2.56, Bihar: 2.51, Uttar Pradesh: 2.47 (lowest)
  • Key Finding: No state crossed a score of 6 — even top performers lack a fully functional ecosystem. Only 2 states scored above 5.5; 8 states scored between 3.8–4.3, pointing to widespread structural issues.

How States Were Evaluated?

  • The index assessed states on six metrics:
    • Clarity and consistency of ownership transfer rules
    • Functional availability and reliability of online systems
    • Speed, predictability, and procedural burden
    • Fee clarity, application tracking, and grievance mechanism
    • Consumer protection, dealer support, and trade infrastructure
    • Official fees versus actual all-in market cost of transfer

The Core Problem: Hidden Costs

  • Cost is the weakest pillar — 12 of 15 states scored below 3.5 on this metric. Manual verification and informal payments inflate real transfer costs to nearly 10 times the statutory fee.
  • Examples: In Bihar, a single transfer can cost ₹13,000–₹14,000 above the official VAHAN fee. At border RTOs in Tamil Nadu (Hosur, Krishnagiri), an ₹800 official fee can balloon to ₹7,000–₹8,000.
  • Delays and Procedural Burden - RC (Registration Certificate) transfer times vary drastically:
    • Andhra Pradesh: 7–10 days (uses biometric authentication for buyer, seller, and lender)
    • Uttar Pradesh: over 30 days
  • In 13 of 15 states, applicants must file online and still submit physical copies to the RTO — defeating the purpose of digitisation.
  • Uneven Road Tax: Another Layer of Complexity
    • Road tax on a ₹6 lakh petrol car varies from 3% in Uttar Pradesh to 14% in Karnataka — a difference of over ₹66,000 on the same vehicle.
    • Only Andhra Pradesh and Telangana have a functioning refund mechanism for vehicles leaving the state.

Market Size and Trends

  • India’s pre-owned vehicle market was valued at $36.4 billion in 2024-25, projected to reach $73.5 billion by 2030.
  • The used-to-new vehicle sale ratio is expected to rise from 1.3:1 to 1.7:1 by 2030 — still below the 2.5:1 to 3:1 ratio seen in mature markets like the US and Europe.
  • 60–65% of used-car buyers are first-time car owners, highlighting the segment’s role as a gateway to mobility for emerging middle-income households.
  • Average used-car price rose from ₹4.49 lakh (2021) to ₹5.47 lakh (2025); average new car price is around ₹11.5 lakh (2024).

Proposed Solutions

  • Fix a stepwise timeline for vehicle transfers through an amendment to the Motor Vehicles Act.
  • Accept DigiLocker and mParivahan documents as primary evidence at every RTO, ending dual online-and-physical submission.
  • Enable real-time integration between banks and VAHAN, so hypothecation is automatically removed once a loan is closed.
  • Allow authorised dealers to clear pending challans during transfer without requiring the owner’s OTP.

Conclusion

The EVOI exposes a fragmented, inconsistent used-vehicle transfer ecosystem across India, where state-level governance gaps, hidden costs, and procedural delays undermine a rapidly growing market.

As India’s pre-owned vehicle sector scales toward global benchmarks, harmonising rules, digitising processes fully, and ensuring fee transparency will be essential to make vehicle ownership genuinely accessible for India’s expanding middle class.