Making Vehicle Ownership Simpler, Faster and More Transparent

India’s pre-owned vehicle market is growing rapidly, emerging as a major pillar of the country’s mobility and consumer economy. Yet, the process of transferring vehicle ownership remains complicated by inconsistent state-level procedures, incomplete digitisation, administrative delays and unpredictable costs.

The Ease of Vehicle Ownership Index (EVOI) 2026 is an initiative to assess and benchmark how effectively Indian states facilitate the transfer of ownership of pre-owned vehicles.

By evaluating state-level performance across six key pillars, EVOI 2026 identifies regulatory and administrative bottlenecks, highlights promising practices and recommends reforms to make vehicle ownership transfers simpler, more transparent, efficient and affordable.

About EVOI 2026

The Ease of Vehicle Ownership Index (EVOI) 2026 applies the principles of competitive federalism to India’s pre-owned vehicle market.

It provides a comparative assessment of the regulatory framework, digital infrastructure, administrative efficiency, transparency, institutional ecosystem and affordability associated with vehicle ownership transfers.

The first edition covers 15 states, representing over 85% of the organised used-vehicle market, and examines both official procedures and the experiences of consumers, dealers and other stakeholders.

The Index focuses exclusively on the ownership transfer lifecycle of pre-owned vehicles, covering the practical challenges encountered when buying and selling used vehicles.

EVOI aims to:

• Benchmark state performance through a transparent, evidence-based framework.
• Identify gaps in vehicle ownership transfer procedures.
• Recognise and promote successful state-level practices.
• Improve consumer and dealer experiences.
• Encourage administrative reforms through competitive federalism.
• Support the formalisation and sustainable growth of India’s pre-owned vehicle market.

Why Does Ease of Vehicle Ownership Matter?

India’s pre-owned vehicle market is undergoing a significant transformation.

The market is projected to grow from USD 36.4 billion in 2025 to over USD 73.5 billion by 2030. By 2030, pre-owned vehicle sales are expected to reach 1.7 times the volume of new vehicle sales.

This growth reflects increasing consumer acceptance of pre-owned vehicles, greater affordability and the expansion of organised digital platforms.

However, the administrative framework governing vehicle ownership transfers has not evolved at the same pace.

Consumers and dealers continue to encounter:

• Different documentation and procedural requirements across states.
• Incomplete online services and mandatory physical RTO visits.
• Delays in registration certificate (RC) transfers.
• Complicated inter-state transfer and NOC procedures.
• Delays in loan closure and hypothecation removal.
• Unclear statutory fees and additional intermediary charges.
• Limited grievance redressal mechanisms.
• Difficulties in resolving pending traffic challans.

These challenges increase the time, cost and complexity of vehicle ownership transfers, affecting consumer confidence and limiting the formalisation of the market.

A streamlined ownership transfer ecosystem is therefore essential to support consumer protection, market efficiency, digital governance and India’s growing mobility needs.

EVOI 2026 at a Glance (put this in a box)

15 States Assessed

Covering more than 85% of the organised used-vehicle market.

6 Assessment Pillars

A comprehensive framework evaluating the ownership transfer experience.

5.91 – Highest State Score

Andhra Pradesh leads the EVOI 2026 rankings.

2.47 – Lowest State Score

Uttar Pradesh ranks at the bottom, highlighting significant opportunities for reform.

39% of Citizens

Reported that their Registration Certificate (RC) transfer was still pending after completing their vehicle transaction.

63% of Citizens

Were unable to accurately estimate the total cost of completing a vehicle ownership transfer.

61.5% of Respondents

Were unaware of party peshi requirements until they reached the RTO.

100% of Respondents

Reported relying on intermediaries or agents to complete ownership transfer procedures due to administrative complexity.

State Rankings: EVOI 2026

How do Indian states compare?

The EVOI 2026 assessment reveals considerable differences in the ease of vehicle ownership transfers across the 15 states.

Andhra Pradesh leads the rankings with a score of 5.91, followed by Kerala at 5.74. Tamil Nadu and Delhi share the third position with 4.58.

The findings indicate that no state has yet achieved a high-ease score of above 7.5, demonstrating the need for wider administrative and regulatory reforms.

Scores are calculated on a scale of 0–10.

What do the rankings tell us?

Andhra Pradesh and Kerala: Leading performers

These states demonstrate comparatively stronger performance in facilitating vehicle ownership transfers, offering important lessons for other jurisdictions.

Tamil Nadu and Delhi: Opportunities for improvement

Both states perform relatively well in the overall assessment but continue to face challenges in individual areas of ownership transfer.

West Bengal, Bihar and Uttar Pradesh: Significant reform opportunities

Their lower scores highlight the need to strengthen digital systems, improve administrative efficiency, reduce transaction costs and harmonise regulatory procedures.

The rankings demonstrate that improving the ownership transfer experience requires more than introducing online portals. It requires effective implementation, reliable digital integration and accountable service delivery.

What Consumers Experience: Key Findings

The EVOI 2026 findings highlight the disconnect between the growing pre-owned vehicle market and the administrative systems governing vehicle ownership transfers.

39% – Delayed RC Transfers

Nearly four in ten citizens reported that their Registration Certificate transfer remained pending even after completing their vehicle transaction.

61.5% – Lack of Procedural Awareness

Respondents reported being unaware of party peshi requirements until they reached the RTO, indicating inadequate communication and procedural transparency.

63% – Unpredictable Transaction Costs

A significant proportion of citizens could not accurately estimate the total cost of vehicle ownership transfers because of widespread opacity in transaction charges.

100% – Dependence on Intermediaries

All respondents reported relying on intermediaries or agents to navigate ownership transfer procedures, reflecting the administrative complexity of the existing system.

The Cost of Vehicle Ownership Transfers

The study also identifies substantial differences between official fees and the actual costs incurred by consumers.

Depending on the state and nature of the transaction, additional costs associated with manual verification, administrative procedures and intermediary services can significantly increase the financial burden.

The reported all-in costs of RC transfers range from approximately ₹500–₹2,400 in Kerala to ₹13,000–₹14,000 in Bihar.

These findings underline the importance of transparent fee structures, simplified procedures and accessible digital services.

Where Are Reforms Working?

EVOI 2026 identifies several promising state-level practices that demonstrate how administrative and technological improvements can enhance the ownership transfer experience.

Digital Transfer Readiness

Kerala, Delhi and Gujarat

These states have developed comparatively stronger digital infrastructure for vehicle ownership transfers. However, physical RTO visits and document submissions continue to be part of the process in several instances.

Innovation in Access

West Bengal and Andhra Pradesh

West Bengal allows video-call-based seller verification at select RTOs, while Andhra Pradesh uses biometric pre-authentication of parties involved in transactions at available centres.

Streamlined Road Tax Refunds

Telangana and Andhra Pradesh

These states demonstrate functional road tax refund mechanisms, with Telangana offering a comparatively structured refund process.

Efficient Turnaround Times

West Bengal, Madhya Pradesh, Haryana, Kerala, Delhi, Telangana, Gujarat, Tamil Nadu and Rajasthan

These states demonstrate comparatively faster processing of ownership transfer applications in different aspects of the assessment.

Deemed Ownership in Practice

Kerala, Rajasthan and West Bengal

These states demonstrate practices where dealers and agents operationalise the deemed ownership framework during vehicle transactions, offering greater certainty during vehicle holding periods.

The identified practices are illustrative findings from the study and do not imply that all procedures are uniformly implemented across each state.

The Reform Roadmap: Eight Priorities for Change

EVOI 2026 proposes eight key reform priorities to address the structural challenges affecting vehicle ownership transfers across India.

1. Digitise the Entire Ecosystem

Develop a unified, cloud-based vehicle records system with automated online approvals, digital identity verification and video-KYC to reduce physical visits, repetitive documentation and administrative delays.

2. Ensure Accountable Service Delivery

Introduce transparent and enforceable Service Level Agreements (SLAs) across the RTO ecosystem to ensure predictable processing timelines and improve institutional accountability.

3. Standardise NOC Frameworks

Establish a uniform, digitally processed national No Objection Certificate (NOC) framework by harmonising requirements, documentation and validity periods across states.

4. Operationalise Deemed Ownership

Ensure effective implementation of the statutory deemed ownership framework across all jurisdictions to reduce liability concerns and facilitate organised dealer operations.

5. Standardise Hypothecation Formalities

Replace physical NOCs and repeated bank visits with real-time API integration between lending institutions and the Parivahan ecosystem, enabling automatic lien removal following loan settlement.

6. Rationalise Transaction Costs

Eliminate unnecessary intermediary expenses through a unified digital payment gateway that transparently consolidates statutory fees and service charges.

7. Standardise National Road Tax Frameworks

Move towards a unified national approach to road taxation to address inter-state fiscal disparities, reduce double taxation and facilitate seamless cross-border vehicle mobility.

8. Liberalise the Challan Ecosystem

Streamline traffic penalty resolution within ownership transfer workflows by enabling authorised stakeholders to clear outstanding fines and resolve challan-related administrative bottlenecks.

Building a Consumer-Friendly Vehicle Ownership Ecosystem

A well-functioning pre-owned vehicle market is important not only for the automobile industry but also for consumers, employment generation, economic inclusion and environmental sustainability.

The sector provides an affordable entry point into vehicle ownership, particularly for first-time buyers and emerging middle-income households.

It also contributes to the circular economy by extending the lifecycle of existing vehicles. According to the report, substituting a new vehicle purchase with a pre-owned vehicle purchase can save an estimated 5–8 tonnes of carbon emissions associated with manufacturing and supply-chain activities.

However, the benefits of a growing pre-owned vehicle market can only be fully realised when consumers can buy and sell vehicles with confidence.

A transparent, efficient and affordable ownership transfer system can:

• Strengthen consumer confidence and protection.
• Reduce transaction costs and administrative delays.
• Improve dealer efficiency and inventory movement.
• Encourage formalisation of the pre-owned vehicle market.
• Facilitate inter-state vehicle mobility.
• Strengthen digital governance and institutional accountability.

The EVOI 2026 provides a framework for measuring progress and identifying the reforms required to achieve these objectives.

Explore the EVOI 2026 Report

Discover the state rankings, detailed findings, state scorecards and recommendations for reform.

Read the Full Report | Download the Executive Summary | Media Coverage