Carnation Auto plans 160 new centres

Carnation Auto, a multi-brand car solution and service providing chain is all set expand. The company plans to open 160 outlets across the country in the next three years via both company owned and franchise route. Presently, it has 25 centres spread across 16 cities, sprawling from Amritsar to Kochi. The 26th facility will be unveiled soon in Ludhiana.

Jagdish Khattar, Chairman and Managing Director, Carnation Auto 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 being sold in India. With a lack of organised players in the segment, the opportunities are enormous.”

Out of 160 new outlets 100 will offer service facilities and also serve as points of sale for used cars. With this the company will own about 40 (service) hubs and about 30 pre-used car centres and the rest of around 100 will be franchised. These numbers can change depending on the response.

Commenting on the potential of the used car market, Khattar said: "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."

The investment for the new business would be around Rs 40 crore. Carnation Auto has already invested over Rs 200 crore since inception on expansion of its service centres across India.