Carnation aims to increase footprint to 200 outlets

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.