Carnation eyes used car market, to open 160 outlets in 3 yrs

**New Delhi:**Multi-brand car service chainCarnation Auto, promoted by former Maruti Suzuki India chiefJagdish Khattar, is gearing up for an aggressive foray intothe used-car market, with plans to open over 160 outlets

across the country in the next three years.

“There is a huge potential for the pre-owned car marketin India. On an average, about 1.3 used cars are sold forevery new car sold in India. With a lack of organised playersin the segment, the opportunities are enormous,” Khattar, thecharmain and managing director of Carnation Auto, said.

[caption id=“attachment_203851” align=“alignleft” width=“380” caption=“The company feels the segment will grow 20 percent per year.Reuters”] [/caption]

As per Society of Indian Automobile Manufacturers (SIAM)data, domestic passenger car sales in 2011 stood at 19,46,373units, up 4.24 per cent from 18,67,246 units in 2010.

Elaborating on the company’s plans, he said the companyplans to open over 160 outlets in the next three years, out ofwhich 100 will offer service facilities and also serve aspoints of sale for used cars.

“The idea is that the company will own about 40 (service)hubs and about 30 pre-used car centres and the rest of around100 will be on the franchise model. These numbers can changedepending on the response,” Khattar said.

Carnation Auto will provide all the verification, qualitychecks and certification along with insurance services tocustomers, he added.

Khattar said the company has already applied for aninsurance broking licence and it would be in a position tooffer the services through a tie-up with insurance firms soon.

Commenting on the potential of the used car market, hesaid: “This is a segment that will grow 20 percent per year.Even now, in our service centres, 15 percent of customers askfor exchanging old cars when they want to upgrade from asmaller to a bigger one.”

Asked about the investment on the new business, he saidit could be to the tune of Rs 40 crore. Carnation Auto hasalready invested over Rs 200 crore since inception on networkexpansion of its service centres across India.

It currently has 25 centres spread across 16 cities,spanning from Amritsar in the North to Kochi. The 26thfacility is coming up shortly in Ludhiana.

PTI