AP tops national index on ease of vehicle ownership | Vijayawada News

AP tops national index on ease of vehicle ownership

Vijayawada: Andhra Pradesh has emerged as the country’s best-performing state in facilitating vehicle ownership transfers, topping the first Ease of Vehicle Ownership Index (EVOI) with a score of 5.91 out of 10. Its relatively faster registration certificate (RC) transfers and road tax refund mechanism have helped the state secure the top spot, though procedural bottlenecks continue to affect vehicle owners.Released by IndiaTech.org in partnership with Consumer VOICE, the index assessed 15 states and Union Territories on the ease of buying and selling pre-owned vehicles and completing ownership transfers. Kerala ranked second with 5.74 points, while Uttar Pradesh finished last at 2.47, followed by Bihar (2.51) and West Bengal (2.56).The assessment covered six parameters: policy and regulatory framework, digital infrastructure, process efficiency, transparency and accountability, institutional ecosystem and dealer support, and cost and affordability. It drew on a survey of more than 1,000 buyers and sellers, interviews with dealers, RTO agents and sector experts, and an examination of central and state motor vehicle regulations.One of Andhra Pradesh’s key strengths is the relatively quick processing of RC transfers. Ownership transfers typically take seven to 10 days in the state, compared with more than 30 days in Uttar Pradesh. The process involves biometric authentication of the buyer, seller and lender.AP is also among just two states, along with Telangana, to have a functioning road tax refund mechanism for vehicles moved outside their jurisdiction. The provision allows owners relocating their vehicles to another state to claim a refund of the road tax paid in the original state.However, the state’s top ranking does not mean the ownership transfer process is free of hurdles. The report points out that in 13 of the 15 states assessed, applicants who submit transfer requests online are still required to physically deliver documents to the respective Regional Transport Office (RTO), undermining the promise of end-to-end digital services.The broader findings underline the structural weaknesses in the used-vehicle ownership ecosystem. None of the 15 states scored more than six points, while eight were clustered within a narrow range of 3.8 to 4.3. Together, the states covered account for more than 85% of India’s organised used-car market.Cost and affordability emerged as the weakest parameter nationally, with 12 states scoring below 3.5. Manual verification and alleged informal payments push the actual cost of ownership transfers well beyond prescribed statutory charges, the report said.Varying road tax rates across states further add to the burden. The tax on a petrol car valued at Rs 6 lakh ranges from 3% in Uttar Pradesh to 14% in Karnataka and Telangana, translating into a difference of more than Rs 66,000 for the same vehicle.The report also flagged the limited adoption of the deemed ownership framework, introduced through a 2022 notification. The provision allows authorised pre-owned vehicle dealers to assume legal responsibility for vehicles held in their inventory. Andhra Pradesh, despite topping the index, has three or fewer dealers registered under the framework, indicating limited uptake.The citizen survey highlighted the risks faced by buyers and sellers when ownership transfers are delayed. Nearly 39% of respondents said their RC transfers remained pending even after they had sold their vehicles, while only 9.6% reported that the process was completed within two weeks. More than a quarter of sellers said they had received traffic challans or legal notices even after handing over their vehicles to buyers.

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