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Carnation Auto Launches Premium Car Service Station
Magneti Marelli has joined hands with Carnation Auto announcing its entry into India's spare parts aftermarket to sell and distribute co-branded auto components. Magneti Marelli is a 4.5 billion euro company.
Carnation Auto was into car servicing business from 2008. Due to the demand from the premium car owners, Mr. Khattar decided to start this business along with Magneti Marelli.
Carnation Auto has got 20 servicing outlets across 13 different cities in India and its Gurgaon station has the capacity to service cars which are priced above 10 lakh rupees.
According to Khattar, more than 25% of luxury car sales happens in Delhi region and hence its good for the company to begin a service station in Gurgaon. Annually, 25000 units of new luxury cars enter into Indian market.
"The actual size of our target is even bigger as the number of old cars completing their warranty periods is much more than new ones," he added.
Dino Maggioni, Magneti Marelli chief executive officer (After Market Parts and Services) informed that its firm will sell products imported from its own facilities as well as sourced from domestic manufacturers. Right now, Magneti Marelli will import parts from their facilities and third party manufacturers that already exist. Depending on demand and quality, the Italian firm will also consider sourcing parts from the local market.
Magneti Marelli's aftermarket division possesses over 30,000 spare parts across 30 product lines. When asked to comment on pricing, Carnation Auto chief said the components would be positioned 10-15 per cent lower than original equipment suppliers and 30-40 per cent higher than unbranded ones. The company will take a final decision by the year end regarding the business plan for sourcing.
The total Indian auto component aftermarket business is stabilised at over 20,000 crore rupees out of which 35 per cent comes from the four-wheeler segment. Carnation Auto has good plans to widen its business. The company would adopt four-five neighbourhood workshops in every city.
Carnation Auto is sketching to upgrade these workshops and train the workshop people to prevent them from using duplicate parts. The car servicing company is hoping for a revenue over Rs.100 crore this fiscal year and eyes at a growth rate of 8-9% in the next five years.
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