Are you interested in starting a new venture in the automobile sector but unaware of the profitable automobile business ideas? Don't worry, we are here for you.
Expected to touch ₹18.18 trillion by 2026, the automobile industry has flourished lately. So, if you are looking for genuine automobile business ideas to make profit margins with a suitable investment, you are in the right place.
So, let’s dig into the details and discuss the potential automobile business ideas one by one.
1. Automobile spare parts business
This automobile spare parts business is evergreen and highly profitable. Moreover, for entrepreneurs interested in the retail industry in the automobile sector, this can be a perfect idea to go for, given the number of vehicles and repair shops in a city.
An auto spare part retail store carries all sorts of parts and tools required by customers for their vehicles. The finance needed for this business is approximately between ₹30 and 40 lakhs in India. With a proper business plan and strategic investment, this can be a very profitable automobile business idea.
2. Used car dealership
Usually, cars are sold 2 to 3 times in their total life span. This provides car dealers with a vast market to deal with. It has excellent potential with people preferring second-hand cars instead of buying a brand new one.
In this plan, you need to purchase used cars from an owner in exchange for money. However, you need to go through many legal steps to operate the business. As for investment, it generally requires about ₹10 to 15 lakhs to buy used cars from previous owners. This plan includes the cost of servicing and repairing used cars with modest capital investment.
Also Read: How to start second hand car showroom?
3. Automobile oil change services
Oil changing service refers to changing the used and filtered oil in the automobile's engine. The old oil is replaced with the new and clean oil.
Lubrication oil is as essential as a fuel oil for the proper working of vehicles and automobiles. Therefore, this sector has a vast scope considering the increasing interest of people in owning automobiles.
Also Read: Tyre Manufacturers in India
4. Auto repair and mechanic services
With two- and four-wheelers on the road, it has become a necessity to get repair and mechanic services. This is one of those automobile businesses that will be in demand for years together. So, opening the business in an urban area with spare parts and tools can result in huge profits. However, this automobile business idea requires qualified technicians, an appropriate business location, and high capital investment at the start.
As a business owner, you need to put in about ₹30 to 35 lakhs to launch your service company with facilities, tools, and employees.
Also Read: How to start automobile repair business?
5. Car washing services for automobiles
This business idea is suitable for people who are into a low capital investment with limited risks associated. Managing a car washing business is easy when compared to other automobile business ideas. However, this too requires proper planning with regard to space and technical washing equipment. You would need around ₹15 to 25 lakhs to set up your car washing services in a city in India.
Also Read: How to start car wash business?
6. Automotive paint and branding
Vehicles are simply not used for travelling but are also a symbol of status for many. Therefore, people like to make their cars and bikes stylish with customised services; that's where the automotive paint and branding come into the picture, offering a wide variety of colours and design sprayings. The main intention is to make the vehicle stand out on the road with attractive graphics or auto wraps. Moreover, painting automobiles in a specific style or logo can lead to effective branding.
7. Export of automotive parts and tools
India is one of the leading countries for supplying spare parts internationally. Foreign manufacturers depend on Indian exporters to make their automotive products more efficient. Therefore, the export of automobile spare parts is another idea to consider. It requires an investment ranging from ₹15 to 20 lakhs. However, the investment may differ on setting up different automobile vehicles such as two- and four-wheelers.
8. Starting an electric automobile charging station
Electric automobiles or Electric Vehicles (EV) are a reality in developing countries like India. Moreover, electric vehicles are receiving immense support worldwide as well.
With the rise in petrol and diesel price and environmental concerns, many are opting for E-vehicles. Therefore, establishing electric charging stations is an innovative automotive business idea and can be regarded as highly profitable with strategic planning and investment.
Also Read: Electric vehicle charging stations in India
9. Car and automobile magazine
There is a need to concentrate on an interested audience by providing a complete manual on automobiles. So, publishing magazines related to automobiles can prove to be one of the most effective automobile business ideas. This innovative plan can change the business by providing knowledge and information to the correct editorial and marketing lead.
10. Automobiles review vlogging and blogging
Currently, blogging and vlogging are at the peak of hype on the internet. Often, people tend to do deep research with the help of bloggers and vloggers before purchasing any vehicle. Therefore, this automobile business idea requires low investment and more effort.
11. Establishing a parking lot
This is one of the most uncomplicated business plans to set up in major metropolitan cities. With the increasing number of vehicles every day, there is a problem of space for parking vehicles. Hence, managing a parking lot can be highly effective in generating profit margins with cost-effective investment. This business only requires a proper site in an urban area or city with good operating labour.
12. Food truck service
This concept is well known abroad and in foreign countries. Yet, the business idea of food truck services is new to India. This acts as a unique feature for your restaurant and attracts passers-by and customers. The only capital you require is a well-managed truck, a good cook, and a waiter for a start. This automobile business idea is highly engaging in India. Besides, you can also change the location in case your previous worksite doesn't add up.
Furthermore, you can even rent your food truck to others to earn extra in your non-business hours.
The automobile industry is blossoming and bringing extraordinary opportunities for entrepreneurs and startups. Hence, investing in a compelling automobile business idea can yield you high profits. Now that you have a list of profitable automobile business ideas, choose wisely and invest smartly.
|We hope our article turned out to be useful for you. For more such informative content, you can visit these linked articles as well:
|How to Start Automobile Store Online?
|How To Start Automobile Parts Manufacturing Business?
|How To Start Automobile Repair Business?
|Profitable Event & Party Business Ideas
|Profitable Small Businesses Worth Starting in 2021
|How Profitable Is A Restaurant Business In India?
Stay updated with new business ideas & business tips with OkCredit blogs in English, Hindi, Malayalam, Marathi & more!
Download OkCredit now & get rid of your bookkeeping hassles.
OkCredit is 100% Made in India.
Q. What are the factors to be considered while starting an automobile business?
Ans. The following factors need to be considered:
- Knowledge and expertise
- Appropriate location
- Investment and capital
- Study and research of the market
- Legal instruments and documents
- Quality of labour
Q. Is starting an automobile business industry risky?
Ans. Well, the risk is a fundamental characteristic of any business, and the automobile industry is no exception. But you can indeed lower the risks by planning correctly and employing the right strategies.
Q. Where should I start my automobile business?
Ans. First and foremost, choose an appropriate location in your city or town. Select a place after deep research and analysis and this must meet your requirements.
Q. What are the challenges which are faced by entrepreneurs while starting an automobile business?
Ans. A businessman faces many challenges and difficulties at the start. These difficulties include:
- Coming up with innovative products and services
- Meeting the demand of customers
- Facing a dynamic and competitive market
- At present, dealing with the Covid protocols
However, once you know the game, increasing profit margins is slightly easy in the automobile sector.
Q. What type of automobile business should I select?
Ans. The type you are interested in and passionate about. Also, you should be able to meet financial requirements and have great expertise in that matter.
Q. How much should I invest in my business in the beginning?
Ans. Invest a reasonable amount of money in your new business. Only face the risk of how much you can afford while starting a new automobile business.