The ex-chief of Maruti Suzuki Jagdish Khattar’s car servicing enterprise is to take care of premium cars too. For this purpose, the company has got a nod from the Fiat Group’s Magneti Marelli to set up one such facility in Gurgaon. Magneti Marelli, a company identified for its 4.5 billion euro projects, is on the process of entering into spare parts segment in India. Jagdish revealed that the move materialized after a two year wait with Magneti offering its assistance. Carnation is spread in nation with 20 service stations situated in 13 major cities and the one initiated for the premium cars will be at Gurgaon as Auto Premio Solutions, for cars priced more than Rs10 lakhs. He said, in addition to the own service outlets, Carnation will involve in securing 4-5 nearby service stations for every major city.The prime job of Carnation in this regard to desist the local service stations from using spurious parts which will harm the vehicles.
He disclosed that there are 25000 units of premium and luxury cars accounted per year and one fourth of this lies on the regions of NCR. This excludes the older cars which have crossed the warranty coverage which could consume more volume than the new ones he added. For this fiscal, Carnation is aiming for Rs100 crore net revenue with a scope of 8-9% growth during the coming years.
Magneti’s move for selling spare parts under co brand will include imported parts and domestic ones. To begin with, the company will deal with own parts and from third party makers. Depending upon the demand domestic parts will be sourced, he said further. Magneti’s spare part range has some 30000 items spread for 30 product. The pricing of components will be interesting- to cost less by 10-15% than the genuine parts suppliers and for unbranded items there will be 30-40% rise. Till the year end, there will be no sourcing he said. The spare parts market in India has the potential for Rs20000 crore from which the car segment constitutes 35%.