Carnation, the Multi-Brand Auto Solutions Network Opens First Franchise

Carnation Auto, India's first independent multi-brand auto solutions network, has inaugurated its very first franchise in Thane today. Car Galaxy, its franchise partner, will provide their customers with Carnation certified pre-owned cars. 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. Even customers interested in selling their cars to Carnation will benefit from honest and transparent dealings.

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

On the occasion, Mr. Ashok Khanna, Sr. 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 unorganized Used Car market to more transparent and credible organized 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.”

"We are extremely happy and it's a matter of great pride for us to partner with Carnation Auto, a pioneer in the multi-brand certified pre-owned cars space," said Mr. Sanjay Wasan, Director Car Galaxy. He further added, "This association will not only help us connect with our valued customers but also help us scale our business to the next level"

Mr. Rajan Pental, Executive Vice President Business Manager, Auto Loan, HDFC Bank, said, “The Used car market is at a stage of evolution and augurs well for the overall market the customers at large. Carnation is creating a good platform to graduate the unorganized players, who have great potential, towards the organized market. We are confident that the service quality of this channel along with HDFC bank's strength in the retail financing space will provide the next level of customer experience, and will mutually benefit the value chain.”