Carnation Auto multi brand car service will have 160 outlets to tap into Indian used car market

Carnation Auto, a multi-brand car service chain will make its presence felt in the Indian used car market through an expansion bid with over 160 outlets pan India over the next 3 years. Of these, 100 would cater as service facilities, and points of sale for used cars. Jagdish Khattar, former Maruti Suzuki India chief, and current Chairman and managing director of Carnation Auto had this to say. “There is a huge potential for the pre-owned car market in India. On an average, about 1.3 used cars are sold for every new car sold in India. With a lack of organised players in the segment, the opportunities are enormous.” Society of Indian Automobile Manufacturers ( SIAM) reported that passenger car sales in 2011 was 19,46,373 units, which equates to a 4.24% increase as compared to 18,67,246 units in 2010. Jagdish Khattar added, “The idea is that the company will own about 40 (service) hubs and about 30 pre-used car centres and the rest of around 100 will be on the franchise model. These numbers can change depending on the response.” Carnation Auto will cater to verification, vehicle quality checks, certification, and insurance services for buyers. The company has applied for an insurance broking licence, which would enable them to offer insurance services through tie-ups with insurance firms. Jagdish Khattar further added, “This is a segment that will grow 20 per cent per year. Even now, in our service centres, 15 per cent of customers ask for exchanging old cars when they want to upgrade from a smaller to a bigger one.” Carnation Auto would entail a further investment of Rs 40 crore. The company has already invested over Rs 200 crore on network expansion for service centres across India. At present, there are 25 centres spanning 16 cities right from Amritsar to Kochi. Their 26th facility will see the light of day in Ludhiana.