For Prelims: VAHAN, Hypothecation, DigiLocker, mParivahan, Index Name, Nodal Ministry, Top State (Score), Bottom State (Score)
For Mains: Ease of Vehicle Ownership Index, used vehicle market, inter-state regulatory disparity, informal costs, Motor Vehicle Act amendment
Source:
Indian Express
5 facts for one-day exams
SSC, railway, police and teaching exams ask direct questions like these.
- The Ease of Vehicle Ownership Index (EVOI) was released on November 4, 2026.
- Andhra Pradesh topped the EVOI with a score of 5.91/10.
- Uttar Pradesh scored lowest in the EVOI at 2.47/10.
- India's pre-owned vehicle market was valued at $36.4 billion in 2024-25.
- The report recommends amending the Motor Vehicle Act for vehicle transfer timelines.
Why in the news?
Andhra Pradesh leads with 5.91/10, while Uttar Pradesh ranks last at 2.47. India's pre-owned vehicle market is projected to grow from $36.4 Bn (FY25) to $73.5 Bn by 2030, with a used-to-new sale ratio of 1.7:1.
Summary
- The Ease of Vehicle Ownership Index (EVOI) was released on November 4, 2026 by Minister of State for Road Transport and Highways Harsh Malhotra, prepared by IndiaTech.org and Consumer VOICE.
- Andhra Pradesh scored highest (5.91/10), followed by Kerala (5.74) and Tamil Nadu (4.58); Uttar Pradesh (2.47), Bihar (2.51) and West Bengal (2.56) are the bottom three.
- The report recommends amending the Motor Vehicle Act to fix a timeline for vehicle transfer, accepting DigiLocker and mParivahan documents at all RTOs, and real-time integration between banks and VAHAN for automatic removal of hypothecation.
Highlights
Used Car Market Growth
India's pre-owned vehicle market is projected to double from $36.4 Bn (FY25) to $73.5 Bn by 2030, with 60-65% buyers being first-time car owners.
Reforms Recommended
The report suggests amending the Motor Vehicle Act to fix transfer timelines, accepting DigiLocker/mParivahan at RTOs, and real-time bank-VAHAN integration.
Key Analysis and Impact
The index reveals stark inter-state disparities: Andhra Pradesh (5.91) leads, while Uttar Pradesh (2.47) lags. The cost pillar is the weakest, with 12 of 15 states scoring below 3.5. Manual verification and informal payments inflate transfer costs to nearly 10 times the statutory fee. For example, in Bihar, a transfer can cost ₹13,000-14,000 above the prescribed fee, while at border RTOs in Tamil Nadu, official fees of ₹800 become ₹7,000-8,000. Uneven road tax adds another layer: on a ₹6 lakh petrol car, tax ranges from 3% in UP to 14% in Karnataka, a difference of over ₹66,000.
Way Forward
The Union government is working on policies to ease the process. The report recommends amending the Motor Vehicle Act to fix a stepwise timeline for vehicle transfer. It also calls for accepting DigiLocker and mParivahan documents as primary evidence at all RTOs, real-time integration between banks and VAHAN for automatic hypothecation removal, and allowing authorised dealers to clear pending challans during transfer without the owner's OTP.
Top and Bottom States in EVOI Index
| Rank | State | Score (out of 10) |
|---|---|---|
| 1 | Andhra Pradesh | 5.91 |
| 2 | Kerala | 5.74 |
| 3 | Tamil Nadu | 4.58 |
| 14 | Bihar | 2.51 |
| 15 | Uttar Pradesh | 2.47 |
Background GK
Textbook concepts you need to understand this news
- VAHAN
- VAHAN is a national vehicle registration database under the Ministry of Road Transport and Highways, capturing vehicle registration, transfer, and hypothecation details across all states.
- Hypothecation
- A charge created on a vehicle in favour of a lender (bank/NBFC) as security for a loan. The borrower retains ownership of the vehicle while the lender holds a charge (security interest) until the loan is fully repaid.
- DigiLocker
- DigiLocker is a flagship initiative of the Ministry of Electronics and IT (MeitY) under the Digital India programme, providing citizens a platform to store and share verifiable digital documents.
- mParivahan
- mParivahan is a mobile app by the Ministry of Road Transport and Highways that provides access to driving licence, vehicle registration, and other transport-related services.
Facts to remember
Tap a card to see the answer. Try to recall it first.
How exams will ask this
- Data: Ease of Vehicle Ownership Index (EVOI) score of Andhra Pradesh 5.91/10; Uttar Pradesh 2.47/10; India's pre-owned vehicle market $36.4 Bn (FY25), projected $73.5 Bn (2030).
- Nodal Body: Ministry of Road Transport and Highways (MoRTH).
- Legal Point: Motor Vehicle Act (amendment recommended for transfer timeline).
Don't make this mistake!
Examiners may ask 'Which state topped the EVOI index?' and provide options like Kerala or Tamil Nadu (which are 2nd and 3rd). They may also swap the market size unit ($73.5 billion vs ₹73.5 billion) or confuse the used-to-new sale ratio (1.7:1) with mature market ratios (2.5:1 to 3:1).
Write these in mains answers
- Ease of Vehicle Ownership Index, used vehicle market, inter-state regulatory disparity, informal costs, Motor Vehicle Act amendment
Stuck? Get it in one tap
The Ease of Vehicle Ownership Index (EVOI) ranks 15 states on how easy it is to transfer ownership of a used car or bike. Andhra Pradesh is the best, Uttar Pradesh is the worst. The report found that people often pay 10 times the official fee due to manual checks and middlemen. It suggests making the process fully digital and changing the Motor Vehicle Act to fix time limits.
- The Ease of Vehicle Ownership Index (EVOI) was released on November 4, 2026.
- Andhra Pradesh topped the EVOI with a score of 5.91/10.
- Uttar Pradesh scored lowest in the EVOI at 2.47/10.
- India's pre-owned vehicle market was valued at $36.4 billion in 2024-25.
- The report recommends amending the Motor Vehicle Act for vehicle transfer timelines.
- Economy: Service sector and market growth
- Governance: Ease of Doing Business and state-level reforms
Related concepts: VAHAN, Hypothecation, DigiLocker, mParivahan
Practice questions
Pick an answer, then read the explanation.
- Q1Easy
Which ministry is responsible for the VAHAN portal and vehicle registration rules in India?
Explanation: VAHAN is a national vehicle registration database under the Ministry of Road Transport and Highways. The Ministry of Finance handles taxation, MeitY handles DigiLocker, and Heavy Industries deals with automotive manufacturing policy.
- Q2Hard
Consider the following statements regarding the Ease of Vehicle Ownership Index (EVOI):
- 1.It was released by the Minister of State for Road Transport and Highways Harsh Malhotra on November 4, 2026.
- 2.Andhra Pradesh scored the highest at 5.91 out of 10, while Uttar Pradesh scored the lowest at 2.47.
- 3.The report recommends amending the Motor Vehicle Act to fix a timeline for vehicle transfer.
Which of the statements given above is/are correct?
Explanation: Statement 1 is correct: the index was released by MoS Harsh Malhotra on November 4, 2026. Statement 2 is correct: Andhra Pradesh scored 5.91 (highest) and Uttar Pradesh scored 2.47 (lowest). Statement 3 is correct: the report recommends a Motor Vehicle Act amendment to fix a stepwise timeline for vehicle transfer.
- Q3Medium
According to the EVOI report, what was the value of India's pre-owned vehicle market in 2024-25?
Explanation: The report states India's pre-owned vehicle market was valued at $36.4 billion in 2024-25. $73.5 billion is the projected value for 2030, not the current figure.
- Q4Medium
What is the primary objective of the EVOI index and the recommended reforms?
Explanation: The EVOI index measures ease of vehicle transfer, and reforms aim to reduce informal costs (which can be 10 times the statutory fee) and streamline processes.
Frequently asked questions
1. What is the Ease of Vehicle Ownership Index (EVOI)?
EVOI is a report ranking 15 Indian states on the ease of buying, selling and transferring used vehicles, based on six metrics. It was released on November 4, 2026 by MoS Harsh Malhotra.
2. Which state topped and which state came last in the EVOI index?
Andhra Pradesh topped the index with a score of 5.91 out of 10, while Uttar Pradesh came last with a score of 2.47.
3. What is the projected size of India's pre-owned vehicle market by 2030?
India's pre-owned vehicle market is projected to grow from $36.4 billion in 2024-25 to $73.5 billion by 2030, with a used-to-new sale ratio of 1.7:1.
4. What reforms does the EVOI report recommend?
The report recommends amending the Motor Vehicle Act to fix a timeline for vehicle transfer, accepting DigiLocker and mParivahan documents at all RTOs, and real-time bank-VAHAN integration for automatic hypothecation removal.
All sources
- Original7 November 2026 · Read story
