chennai indias preowned car market is expected to hit the 7 million units mark by 2020 said a justreleased study by indianbluebookcom according to the report the used car industry tipped to hit 33 million units this fiscal is growing at 15 clip almost double the growth trot of the new car market by 2020 both the used and the new car market in india will be among the top 5 global automotive markets said the surveythe survey which leveraged mahindra first choice wheels franchise network found that just under half 45 of all preowned cars sold are in metros while nonmetros account for over half 55 the preowned car volume sold nonmetro markets are growing faster than their metro counterparts in geography terms the north leads the preowned car market in india at 36 of the used car pie followed by the west 27 south 26 and east 11organized players today make up 12 share of used car volumes and 19 share of dealerships and are the fastest growing segment at 25 a year the nonmetro markets are a bigger geography though more fragmented and are growing faster through the organized channel the total used car dealer count in metros is 11340 of which 800 are organised the total dealer count in nonmetros is 18580 of which organized dealers are 1310 said nagendra palle md ceo mahindra first choice wheelseven in terms of vehicle preference the same brands rule both metros and nonmetros nonmetros have more dual use vehicles for both personal and commercial applications and there are more diesel vehicles than in metros where petrol rules now but the great metrohinterland divide does not really exist added palleaccording to the study around 50 of used car buyers are in the 2534 years age segment and the average age of a preowned car at the time of sale is around 4 years with average ticket size of rs 34 lakh there are four primary market segments in the used car space the organized segment comprises 12 the semiorganised segment commands 35 the customertocustomer segment is 34 and the unorganized is 19like that of the us the preowned car market in india is larger than its new car market 12x chinas preowned car market though larger in volume compared to that of indias is less evolved at 05x that of its new car market said the report indias motorization rate lies at 22 cars1000 people compared to over 800 cars1000 people in the us which has a car parc that is 10x that of india there is significant headroom for preowned car financing said palle preowned car finance penetration in india is under 15 while that for new cars is approximately 65 finance penetration is significantly higher within the organized channel 40 across the metros and nonmetros while the semiunorganized channel is highly fragmented with higher channel costs for lenders he added