Carnation Auto Enters in Used Car Market


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Carnation Auto-a multi brand car service chain, a brain child of former Managing Director of Maruti Udyog Limited is going to enter the used car market.Carnation will set up as many as 160 outlets across the country in the next three years and will provide all the verification, quality checks and certification along with insurance services to customers.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.The company has already invested over Rs 200 crore on network expansion for service centres across India.
 

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Re: Carnation Auto to Enter Used Car Market

Carnation is already into certified used car market from sometime. Perhaps they are planning to expand their business now?

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Re: Carnation Auto to Enter Used Car Market

Carnation Auto, a multi-brand auto sales and service network started by former Maruti managing director Jagdish Khattar, is on an expansion drive. The company, started in early 2009, will enter newer cities while also expanding on the internet for car retail business.

Khattar said the company will follow the franchisee route as it moves to newer cities. Carnation currently runs 24 multi-brand service hubs, 17 second-hand vehicle outlets and over 50 mobile workshops. It is present in 16 cities, which include Jalandhar, Ludhiana, Chandigarh, Noida, Gurgaon, Mumbai and Chennai through company-operated stores.

"There is tremendous opportunity in the business and we are servicing cars from various brands at our outlets ," he said.

The company has raised about Rs 190 crore and the investors include Gaja Capital Partners, Premji Invest and IFCI Ventures. Khattar did not disclose his holding in the company or of the other financial investors. Asked whether the business is making operational profits, he said, "It depends from location to location."

Carnation will now be expanding its bouquet of offerings and is looking to offer car insurance facilities from its outlets. The company, however, has faced issues on parts availability as sometimes car companies are not ready to sell them to workshops outside their dealer network. Khattar, however, said that the matter is not a serious issue as parts of the big manufacturers are readily available and only a handful of companies hold on to such supplies. The matter is already under consideration of the Competition Commission of India.

Khattar said Carnation is getting customers in the form of fleet operators as well as individual car owners. "The independent multibrand concept is now well accepted and will grow further."
 
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Re: Carnation Auto to Enter Used Car Market

Used cars seller Carnation plans to expand its reach to 200 outlets from the current 41 in the next two years.

"We should increase our network to 200 in the next two years which will include both owned and franchisees," Jagdish Khattar, Chairman and Managing Director of the company, said.

Going forward, the company will rely more on franchisee route.

Carnation, which has a network of over 41 outlets (24 maintenance hubs and 17 pre-owned car showrooms) across the country, opened its first franchisee in Thane today.

Khattar said the company has invested a "couple of hundred crores" in creating its brick and mortar network from scratch, and will henceforth concentrate more on the asset-light franchisee model to grow.

The used car market will grow at over 20 per cent annually till FY15, he said, adding that at present around 30 lakh used cars are sold in the country every year, which is expected to increase to 76 lakh by end of 2014-15.

As the market grows, an increasing number of buyers are looking for guarantee for which they may come to a branded store like Carnation, he said, adding the organised players' market share will go up from the present 15 per cent.

The corporate or business buyers have a liking for used cars because of the high rate of depreciation on cars, while the individuals have started opting for it both as a first car as well as for upgradations, he said.

Carnation sells 200 to 220 used cars per month through its dealerships, Khattar said.
 
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Re: Carnation Auto to Enter Used Car Market

Multi-brand pre-owned car dealer, Carnation Auto, has opened its first franchise with partner Car Galaxy in Thane. The large facility can display as many as 50-60 cars at a time. All cars purchased at Carnation outlets come with free services and warranty, and are certified by the company after stringent checks.

Since a majority of the used car market is disorganised, many customers are susceptible to buying poorly maintained cars due to lack of knowledge. Companies like Carnation and Mahindra First Choice are playing a huge role in getting the used car segment organised. Carnation says that according to market estimates, the used car industry is growing at 18-20 percent per year and the organised sector is growing at 40 percent per year. Since its launch in February 2009, the company has opened 24 workshops in 16 cities.

New Carnation franchise opens | News | Autocar India
 
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Re: Carnation Auto to Enter Used Car Market

Carnation launches four more outlets to consolidate its presence in delhi ncr
carnation auto, india’s first independent multi-brand auto solutions network, inaugurated four new pre-owned cars showrooms today; including two in karol bagh, one of the oldest and largest used car markets in the country and two in gurgaon - the millennium city. These showrooms will provide their customers with carnation certified as well as value cars. The opening of four showrooms in a single day, a new first, is carnation’s next big leap towards expanding its successful network further across the indian market and contribute towards consolidating the organized used car market in the country.

According to market estimates, the used car industry is expected to continue to grow at a rate of 18-20% per year, and the organized segment at a searing pace of 40% annually. Already a leader in the organized multi-brand pre-owned cars market, carnation is hopeful of helping grow the size and reach of the organized used car market, by targeting to expand to over 200 outlets in the next two years.

Through the franchise route, carnation aims to be more accessible to their customers by building a recognised pan-india brand across a wider network. Leveraging its existing nationwide robust car service and repair network, carnation will provide certified cars that have been subjected to a stringent 160 points quality check as well as in-house refurbishment process at world class facilities. Every carnation certified pre-owned car purchased from any of the 20 outlets spread across india, including cities like bangalore, delhi, gurgaon, hyderabad, mumbai, and pune to name a few, comes with labour free services, warranty, hassle-free documentation, and after sales support. Even customers keen to sell their cars to carnation will benefit by getting fair price, honest and transparent dealings, clean documentation, and attractive car exchange offers.

Speaking at the inauguration, mr. Jagdish khattar, chairman & managing director, carnation auto said, “we've established our reputation as a leader in the organized multi-brand used car segment. The franchise partnership format, now, gives us the opportunity to exponentially grow our network across india. We opened our first franchise in thane just last month, and today we have opened four new showrooms in ncr. Carnation is enabling the creation of a strong platform by leveraging technology and the web to help unorganized players, who have great potential, towards standardization, seen in the organized market. After successfully showing proof of concept with company owned stores, we are replicating the success with our partner stores as well."
Newly Launched Carnation Store at Gurgaon.jpg
 
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Jagdish Khattar takes on auto industry for restrictive practices

Jagdish Khattar, who spent many years as Maruti Suzuki MD running a profitable spare parts business, has taken on the auto industry for its alleged restrictive practices in the sale of spare parts to independent dealers.

Khattar's Carnation, which is a multibrand auto solutions provider, has moved to implead itself in a Competition Commission of India (CCI) enquiry against the anti-competitive practices of the auto industry. "I've always believed that Indian customers have to be given a choice," Jagdish Khattar in an interaction over phone told ET.

The application made by Khattar's firm, and signed by him, states that it is made with an intent to "protect public interest" and lead to better competition in the automobiles aftermarket to the "benefit of Indian consumers." Khattar joined Maruti in 1993, and became its managing director in 1999 before retiring in 2007.

Maruti Suzuki, India's biggest car company, operates a thriving spare parts business but is also one of the few companies to supply to independent dealers who repair out-of-warranty cars. The Competition Commission of India (CCI) is inquiring into the alleged anticompetitive practice of 17 carmakers who sell spare parts at higher prices to consumers through their authorised dealers. CCI has said that the carmakers have been using their dominant market position to charge exorbitantly from consumers, even as companies have maintained that they are merely following local market practices.

After a year-long detailed investigation, CCI had charged almost every carmaker in India for alleged anti-competitive practices to swell their profits by circumventing ways to deceive their own customers.

"The prevailing practices have not allowed space for independent outlets to compete or survive in a closed market as companies restricted all component, diagnostic tools and technical manuals to their dealers, making them the sole option for customers for all service needs," the investigative arm of the CCI has said in its final report.

Jagdish Khattar takes on auto industry for restrictive practices - The Economic Times
 
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