Carnation Auto in expansion mode

Published: 19th August 2012 12:00 AM  |   Last Updated: 17th August 2012 12:23 PM   |  A+A-


Former Maruti Suzuki head Jagdish Khattar’s initiative Carnation Auto launched recently its first franchise as it marks a new chapter for India’s first independent multi brand auto solutions network. Ammar Alvi has more.

So far Carnation Auto has launched hubs in 16 cities, 50 workshop-on-wheels, delivered four lakh cars, inaugurated 17 pre-owned car showrooms and 11 accessories stores and been able to tap into the used car market. Now the company added yet another feat when it launched its very first franchise in Mumbai. The opening of this franchise is Carnation’s next step towards spreading its successful network across the Indian market.

Through the franchise route, Carnation aims to build a pan-India brand across a wider network to become more accessible to their customers. Leveraging its existing robust car service network, Carnation will provide certified cars that have been subjected through stringent 160 points quality check and in-house refurbishment. Every certified used car purchased from any Carnation outlet comes with free services, warranty, hassle-free documentation, and after sales support.

Speaking at the inauguration, 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.”

According to market estimates, the used car industry is expected to grow at a rate of 18-20per cent per year, and the organised segment at 40 per cent. Carnation and HDFC Bank have been collaborating together, since the start of the company, to help grow this organised used car market.

On the occasion, Ashok Khanna, Senior 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 unorganised used car market to more transparent and credible organised 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.”

Carnation Auto, an initiative of Khattar launched in 2008, is an independent multi-brand automobile sales and service network with a state-of-the-art infrastructure for car services, and related solutions like accessories, insurance, workshop on wheels and certified pre-owned cars. Carnation has its extensive network spread across the country, with the aim of enhancing the overall experience of owning a car and to optimise the cost of ownership.


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