India’s pre-owned car market is projected to more than double in value by 2030, but the systems governing vehicle ownership transfers have not kept pace. Buyers and sellers continue to encounter delays in transferring registration certificates, unexpected charges and paperwork that often requires visits to transport offices despite the availability of online services.
The gap is documented in the Ease of Vehicle Ownership Index (EVOI) 2026, released on 4 November by IndiaTech.Org and Consumer VOICE. The study ranks 15 Indian states and Union Territories on the ease of buying, selling and transferring pre-owned vehicles. Andhra Pradesh leads with 5.91 out of 10, while Uttar Pradesh ranks last at 2.47. No state scores above 6.
The findings raise questions about whether India’s administrative systems can support a growing national market for used vehicles.
What Is Changing
India’s pre-owned car market is projected to grow from $36.4 billion in 2025 to $73.5 billion by 2030, with annual sales volumes rising from 5.9 million to 9.5 million vehicles, according to industry estimates cited in the report. Used-car sales already exceed new-car sales by volume, while organised dealerships and digital platforms are expanding their presence.
Yet the index shows substantial differences in how states implement ownership transfers. Kerala ranks second at 5.74, followed by Tamil Nadu and Delhi at 4.58 each. West Bengal (2.56), Bihar (2.51) and Uttar Pradesh (2.47) occupy the bottom three positions. The index evaluates six dimensions, including regulatory clarity, digital services, processing times, transparency and affordability.
The study combines reviews of official procedures with consultations involving dealers, agents and consumers. Its separate survey of more than 1,000 buyers and sellers transacting through organised platforms reveals the practical difficulties:
- 39% reported that their registration certificate (RC) transfer was still pending after the vehicle transaction.
- 63% could not accurately estimate the total ownership-transfer cost.
- 61.5% were unaware of requirements for in-person appearances before transport authorities until reaching the RTO.
- 100% of surveyed respondents reported relying on intermediaries or agents to complete their transfers.
These difficulties persist despite national digital transport services such as VAHAN and Parivahan. According to the index findings reported by PTI, 13 of the 15 assessed states still require applicants to submit physical documents to RTOs after filing online.
The report also finds that opaque procedures, intermediary charges and informal payments can push actual ownership-transfer costs to nearly ten times the official statutory fees, according to its survey findings.
Why It Matters For India
The used-car market plays an important role in expanding access to personal mobility. Industry data cited in the report indicates that 60–65% of buyers in the organised pre-owned vehicle market are first-time car owners. Lower purchase prices make used vehicles an entry point for households that may find new cars unaffordable.
However, unpredictable transfer costs can reduce that affordability, while delayed ownership records create uncertainty for both buyers and sellers. The report finds that 28.1% of surveyed sellers received traffic fines or legal notices after handing over their vehicles, illustrating the consequences of unresolved ownership records.
Interstate transactions introduce further complications. States apply different road-tax rules and procedures for obtaining non-objection certificates. Buyers moving vehicles across state boundaries can face a mismatch between taxes payable in the destination state and refunds available from the originating state.
According to the index’s findings on interstate taxation, only Andhra Pradesh and Telangana had confirmed functional road-tax refund mechanisms among the assessed states.
These differences matter beyond individual transactions. As digital platforms enable vehicles to be bought and sold across wider geographical markets, inconsistent state procedures can increase compliance costs, delay sales, slow inventory turnover and tie up working capital.
The broader question is whether India’s administrative infrastructure can support a larger, more integrated pre-owned vehicle market. A national digital marketplace cannot function seamlessly if the ownership records, tax obligations and approval processes behind transactions remain fragmented.
What Needs To Change
The report recommends eight reform priorities, including end-to-end digital ownership transfers, standardised non-objection certificates, transparent service timelines and improved integration between banks and transport authorities. It also proposes a common national road-tax framework to address interstate taxation differences and refund difficulties.
There are examples of progress. Andhra Pradesh uses biometric authentication to reduce in-person appearances during transfers, while West Bengal permits seller verification through video calls at selected RTOs. Kerala, Delhi and Gujarat have comparatively developed online ownership-transfer systems, although physical visits often remain necessary in practice.
At the index’s launch, Union Minister of State for Road Transport and Highways Harsh Malhotra acknowledged the difficulties faced by consumers and said the central government was working on policies to simplify ownership transfers.
The index is a first-edition benchmark concentrated on states with substantial organised-market activity. Its findings are indicative of broader patterns rather than representative of every RTO or transaction across India.
Nevertheless, it identifies a practical test for India’s next phase of digital governance. Making ownership transfers predictable, affordable and consistent across states could help India’s expanding used-car market serve more first-time buyers while enabling vehicles to move more easily through a national marketplace.