Q&A: Jagdish Khattar, CMD, Carnation Auto

Individual multi-brand outlets will become an option for car owners'

The idea of a one-stop-auto solution outlet for all brands of cars seems to be catching up. Though still not significant, it is slowly shifting the consumer’s dependency on the local mechanic and providing an alternative to their authorised dealerships. Jagdish Khattar, chairman and and managing director of Carnation Auto, one such initiative in the country, tells Praveen Bose it is not only about servicing and repair, but a complete car solution. Edited excerpts:

Several smaller players have entered or are entering the market. How are you fighting competition from newcomers?
The smaller players, known as neighbourhood workshops, were always there. We now have a couple of major corporate players who have entered the market that Carnation operates in. It is in a nascent stage and the entry of more players only re-emphasises the fact that there was a need of this model and it will only expand. We do not see these developments as competition. It is a radiation of our hypothesis.

There is an increasing trend of car makers expanding their network to retain their share of the service business. How is it affecting you?
With the increase in the sales of new cars, there is a need for more facilities. Hence, the network expansion is meeting the need. However, it has been noticed that bulk of the customers tend to move away from dealerships. This is where independent multi-brand outlets come. Besides, our unique proposition is that we are multi-brand and a one-stop-shop for many of the auto needs of the customers.

Have the slowed down in auto sales impacted your business?
Car owners come to us after the warranty period gets over, hence, the current fluctuation in the sales figures has not impacted us.

You had a strategic pact with Italian parts supplier Magneti Marelli. How is that business panning out?
Magneti Marelli is already supporting us in the premium car section at our hub in Gurgaon.

How many centres do you have today? Is your expansion going according to plans?
We have 25 centres spread across 16 cities. A couple of more are in the pipeline. We also have nine pre-owned car outlets and 10 accessories outlets, 10 insurance renewal centres and about 50 workshop on wheels.

How’s your used car business doing?
We are witnessing good traction in this business. Besides, dealing with individual customers we have also tied up with various corporate and fleet operations. They have responded enthusiastically. Till now we have sold more than 1,200 used cars through our pre-owned cars outlets.