Used Vehicles: Ease of Transactions Depends on State, Pg13

Key Highlights:

• The pre-owned vehicle market in India is growing significantly, with used cars expected to outsell new ones by 2030.
• The Ease of Vehicle Ownership Index report, released by Union Minister of State for Road Transport and Highways Harsh Malhotra, assesses the simplicity of used vehicle transactions.
• Andhra Pradesh scored highest (5.91 out of 10) among 15 states surveyed, followed by Kerala (5.74).
• Uttar Pradesh ranked last (2.47), indicating significant challenges in used vehicle transactions.
• The report, prepared by IndiaTech.org and Consumer VOICE, highlights complex rules, lack of transparency, and high costs as major issues.

Detailed Insights:

• The current used-to-new car ratio is 1.3:1, projected to reach 1.7:1 by 2030 due to lower upfront costs.
• The index evaluated states based on six metrics, including clarity of ownership transfer rules, online system reliability, speed, fee transparency, and consumer protection.
• The 15 states covered account for over 85% of India’s organized used-car market.
• "Cost" was identified as the weakest pillar, with 12 states scoring below 3.5, indicating payments well above prescribed transfer costs.
• Registration Certificate (RC) transfer times vary widely, from 7-10 days in Andhra Pradesh to over 30 days in Uttar Pradesh.
• A common issue is the requirement for physical document submission at RTOs even after online filing in 13 of the 15 states.
• Recommendations include amending the Motor Vehicles Act for fixed transfer timelines and accepting DigiLocker and mParivahan documents as primary evidence.
• The report also suggests real-time integration between banks and VAHAN for automatic hypothecation removal and allowing authorized dealers to clear pending challans.

Key Concepts Involved:

• Ease of Vehicle Ownership Index: A report evaluating states on the simplicity and transparency of used vehicle transactions.
• Motor Vehicles Act: The primary legislation governing all aspects of motor vehicles in India, including registration and transfer.
• DigiLocker: A digital platform for citizens to store and access official documents securely.
• mParivahan: A mobile application providing access to various transport-related services and digital vehicle documents.
• VAHAN: A national database and registry system for vehicles, managed by the Ministry of Road Transport and Highways.
• RTO (Regional Transport Office): Government body responsible for vehicle registration, driving licenses, and other transport-related services.