Demand for used car in India multiplies: Carnation Auto to increase outlets
Carnation Auto, the country’s largest integrated multi brand auto company and dealer in used cars is planning to increase its outlets from a current count…
Their first Carnation Auto franchisee was inaugurated in Thane earlier this week. With more such outlets promised in the future, Carnation Auto got into a strategic alliance recently with Magneti Marelli, which is a $7 billion subsidiary of the Fiat Group for servicing premium cars and to market spares in the Independent aftermarket.
The used car market in India is growing by leaps and bounds and is expected to reach 20% growth per annum by the year 2014-15. Currently over 30 lakh used cars are sold per annum which is expected to reach 76 lakhs by year 2014-15. Recently Carnation Auto received a loan of Rs 170 crore from Punjab National Bank for executing this nation-wide rollout of its multi-brand auto solution hubs.
Customers are opting for used cars over new cars following increased rates of interest, rising fuel prices and an otherwise slow economy. Purchasing such vehicles from a branded company like Carnation Auto adds to the confidence of buyers and the company sells between 200 to 250 cars per month through their various dealers.
Speaking at the inauguration, Mr. Jagdish Khattar, Chairman & Managing Director, Carnation Auto said, “Having taken the lead in the independent multi-brand segment, the company is now looking to exponentially grow its network across India through the franchisee format. Our tie up with Car Galaxy is the first step in that direction. After successfully showing proof of concept with our company owned stores, we plan to replicate the success with our partners.”
On the occasion, Mr. Ashok Khanna, Sr. Executive Vice President and Business Head, Vehicle Loans, HDFC Bank, said, “What we have witnessed in the last half a decade is a paradigm shift from a largely unorganized Used Car market to more transparent and credible organized brands. With burgeoning New Car Sales, the Seconds market is bound to grow. Customers today look for outlets that not only provide quality cars but also have strong service backing. Credible brands making the market, gives confidence to the overall buying process. Carnation’s entry in the franchise space will bring in a lot of credibility to this business. I wish them all the success in launching many more outlets.”
“We are extremely happy and it’s a matter of great pride for us to partner with Carnation Auto, a pioneer in the multi-brand certified pre-owned cars space,” said Mr. Sanjay Wasan, Director Car Galaxy. He further added, “This association will not only help us connect with our valued customers but also help us scale our business to the next level”
Mr. Rajan Pental, Executive Vice President & Business Manager, Auto Loan, HDFC Bank, said, “The Used car market is at a stage of evolution and augurs well for the overall market & the customers at large. Carnation is creating a good platform to graduate the unorganized players, who have great potential, towards the organized market. We are confident that the service quality of this channel along with HDFC bank’s strength in the retail financing space will provide the next level of customer experience, and will mutually benefit the value chain.”
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