Carnation looking at franchisee model for used-car segment

Our Bureau Updated - September 12, 2013 at 09:54 PM.

“Rich people buy new cars, intelligent people buy second-hand cars,” says Jagdish Khattar, Chairman and Managing Director, Carnation Auto India, a multi-brand car service chain and dealer in pre-owned cars.

Khattar smiles — it must have been tough to keep a straight face considering that he once held the top post in the country’s largest manufacturer of cars, Maruti Udyog.

“I am a changed man,” he says, and why not? He now uses a three-year-old car that has done about 13,000 km.

When a buyer can get a car in good condition for a price one-third less as compared with a new one, there is something to be said for buying a pre-owned car, he says.

At an informal interaction following the inauguration of a Carnation India franchise for pre-owned cars recently, Khattar says the scope for the used cars market is huge.

As organised players expand their presence more people will look at buying pre-owned cars just for the cost benefit they offer.

Auto hub concept

Carnation Auto has opted for the franchise route to expand its presence after setting up nearly a dozen company-owned and operated outlets.

The company is keen on the auto hub concept with all-under-one-roof including service, repairs, spare parts sales, insurance and other facilities.

Carnation India is looking at over 10 outlets in each major city as `visibility enforces customer confidence,’ he said.

balaji.ar@thehindu.co.in

Published on September 12, 2013 16:24