Andhra Pradesh has topped the first Ease of Vehicle Ownership Index (EVOI), released by IndiaTech.org in partnership with Consumer VOICE. The index ranks 15 States and Union Territories on how easily a citizen or dealer can buy, sell and transfer a pre-owned vehicle. Andhra Pradesh scored 5.91 out of 10, followed by Kerala at 5.74. Uttar Pradesh came last at 2.47, just behind Bihar at 2.51 and West Bengal at 2.56.
No State crossed 6.0. Eight of the 15 states sit in a narrow band between 3.8 and 4.3, which suggests the problems run across the system rather than in a few lagging states. Together, the 15 states account for over 85% of India’s organised used-car market.
The EVOI scores each state on six pillars: policy and regulatory framework, digital infrastructure, process efficiency, transparency and accountability, institutional ecosystem and dealer support, and cost and affordability. The pillar scores are combined using a weighted geometric mean, so strength in one area cannot hide weakness in another. The findings draw on a pan-India survey of over 1,000 buyers and sellers, interviews with dealers, RTO agents and sector experts, and a review of central and state motor vehicle rules.
Launching the report, the Minister of State for Road Transport and Highways Mr. Harsh Malhotra said, “The used car market in India is very big, and many people buy their first car as a second-hand or used car. I remember my first car, which was also a pre-owned car. While there are hassles and challenges in the transfer of ownership, the integration of policies and their implementation across States is very important, as differences in state-level governance often lead to problems. The Central Government is working on policies in this regard, and we are also taking steps such as setting up automated testing stations, which provide considerable relief, promote ease of doing business and help eliminate corruption. There is always scope for improvement, and we will discuss the recommendations basis this report findings to further enable ease of mobility.”
Cost emerged as the weakest pillar nationally, with 12 of the 15 States scoring below 3.5. Manual verification and informal payments push the real cost of a transfer to nearly 10 times the statutory fee. In Bihar, a single transfer can cost ₹13,000 to ₹14,000 over and above the fee prescribed on VAHAN. At border RTOs in Tamil Nadu such as Hosur and Krishnagiri, an official fee of about ₹800 becomes ₹7,000 to ₹8,000.
Transfer times also vary widely. A typical registration certificate (RC) transfer takes seven to 10 days in Andhra Pradesh, where the buyer, seller and lender authenticate biometrically, but more than 30 days in Uttar Pradesh. In 13 of the 15 States, applicants who file online are still asked to deliver physical copies to the RTO.
Road tax on a ₹6 lakh petrol car ranges from 3% in Uttar Pradesh to 14% in Karnataka and Telangana, a difference of over ₹66,000 on the same vehicle. Only Andhra Pradesh and Telangana run a working refund system for vehicles that move out of the State. A March 2026 CAG audit of 145 motor vehicle tax refunds in Karnataka found an average processing time of 436 days.
The report also points to slow uptake of the Deemed Ownership framework, notified in 2022 under GSR 901(E), which lets authorised dealers take legal responsibility for vehicles in their stock. Four years on, India has 2,032 such registered dealers, of whom 875 are in Kerala. Delhi, Karnataka and Telangana have none, while Andhra Pradesh, Haryana, Punjab and Uttar Pradesh have three or fewer each.
The citizen survey paints a similar picture. Some 39% of respondents said their RC transfer was still pending after the sale, and only 9.6% saw it completed within two weeks. Nearly 61.5% did not know an in-person appearance at the RTO, known as party peshi, was required until they got there, and 62.7% could not say what the transfer had cost them in total. More than a quarter of sellers, 28.1%, received challans or legal notices after handing over the vehicle. At the same time, 52.5% said they would complete the transfer themselves if the process were fully online and clearly documented.
Mr. Dhiraj Gyani, CEO of IndiaTech.org, said, “A vehicle may travel seamlessly across State boundaries, but the administrative processes governing its ownership often do not. As India’s pre-owned vehicle market becomes an increasingly important part of our mobility and consumer economy, the systems governing ownership transfers must evolve in step with the market. The EVOI 2026 findings highlight significant variations in State-level processes, as well as considerable scope for improvement across the country. Our objective is to encourage greater harmonisation, digital integration and administrative efficiency, enabling citizens and businesses to experience seamless and predictable vehicle ownership transfers, irrespective of where they are located. We believe that a more integrated national framework, including progress towards the vision of ‘One Bharat, One Road Tax’, can play an important role in unlocking the sector’s full potential.”
The stakes are rising with the market. India’s pre-owned vehicle market is projected to grow from $ 36.4 billion in 2025 to $ 73.5 billion by 2030, when used cars are expected to outsell new ones by 1.7 to one. Between 60% and 65% of buyers in the organised segment are first-time car owners.
The report sets out a reform roadmap that States can largely act on within their existing powers. It calls for statutory timelines for transfers through amendments to Section 50 of the Motor Vehicles Act, 1988 and Rule 55 of the Central Motor Vehicles Rules, with approval within 24 to 48 hours, RC dispatch within 2 to 3 days, interstate NOCs within 48 hours and road tax refunds within 14 days. It recommends that DigiLocker and mParivahan documents be accepted as primary evidence at every RTO, ending the need for both online and physical submission, and that banks be integrated with VAHAN in real time so hypothecation is removed automatically when a loan closes.
The report further proposes enforcing Deemed Ownership in every State, backed by a national registry of authorised dealers and a simpler route for dealers with a turnover below ₹20 lakh. Other recommendations include a “One Bharat, One Road Tax” framework, a standard digital refund module on Parivahan, allowing authorised dealers to clear pending challans during a transfer without the owner’s OTP, and carrying over own-damage insurance cover automatically on transfer, as is already done for third-party cover.
IndiaTech.org said it will engage with the transport departments of the 15 States and Union Territories, sharing individual scorecards and recommendations to support state-level reforms. The association will also convene a national workshop bringing together policymakers and industry stakeholders to discuss priority reforms for a more seamless vehicle ownership system