Carnation Auto plans to step into Used Car market

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A few years back, Mr.Jagdish Khattar, the ‘former boss man’ at Maruti Suzuki India Ltd. introduced Carnation Auto-a multi brand car service chain. Now, with the used car market heating up in the last couple of years, the aforementioned multi-brand car service chain is readying itself to plunge into the used car market and start by setting up as many as 160 outlets across the country in the next three years. These Carnation Auto outlets will provide all the verification, quality checks and certification along with insurance services to customers.

Khattar said, “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. 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.This is a segment that will grow 20 percent per year. Even now, in our service centres, 15 percent of customers ask for exchanging old cars when they want to upgrade from a smaller to a bigger one.

Khattar also said that the investment for the new business could be to the tune of Rs 40 crore. Carnation Auto currently has 25 centres spread across 16 cities of Amritsar in the North to Kochi. The upcoming outlet in Ludhiana will be the firm’s 26th service station.

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