The automobile spare parts shop is also a very good business in the Automobile mobile industry, it is a low investment and risk-free business. If someone likes to do business and has an interest in the automobile industry, then the same automobile spare part Can open a shop.
As we all know that a vehicle is made by using different types of parts. And sometimes the parts in the car stop working, then new parts are put in the car by a mechanic instead of these damaged parts, due to which the car starts working again.
So, Every auto spare part requires frequent change during the entire lifespan of the vehicle. And it is only for this reason that the automobile spare parts industry is so profitable and evergreen. Basically, depending on your investment capacity, you can start the business in a variety of ways. To be successful, this type of retail business necessitates consistent dedication and effort.
Market Scope for Automobile Spare Parts Business
In India, the auto sector is slowly growing continuously for the last many years, as the income of the people is increasing, people are preferring to take a car, and they also have a tendency to travel from one place to another. This is the reason that an increase of 1.53% was estimated in the sales of commercial vehicles. Apart from this, people are showing more interest in the purchase of two-wheelers, which is why the sale of two-wheelers has increased by 22%.
Also, India’s auto industry is one of the largest automobile industries in the world, contributing 7.1% to India’s Gross Domestic Product (GDP). And according to one figure, the demand for a passenger vehicle will triple in India to about 94 lakhs by 2026. So, you can guess from these figures that there is a lot of scope for growth in the auto parts business. And, you can open this business without a doubt.
Create a Business Plan for the Business
Starting this business requires the creation of a specific business plan. Aside from creating a blueprint, the business plan aids in the identification of the goal and the methods for achieving that goal.
The most important thing is that it is absolutely necessary for the entrepreneur to have practical knowledge, before starting the business. this thing should be studied in the area where you are going to set up business or shop, which brand cars are being used more in there. or, according to which companies prefer auto parts business in your area.
it is very important that you should take practical knowledge before starting the business. Also, Develop both a business and marketing plan. Your business plan must include details about how you intend to run the company. You can create the plan yourself, or you can hire a professional plan writer or use business plan software.
Investment for Automobile Spare Parts Business
You need investment from the beginning of the Spare part shop, in this, you have to invest to buy different types of goods and your investment depends on the place where you are going to start the business. And, It depends on you how much you want to invest in this business. Because if you start this business on a large scale, then you will need more investment for this.
If you start this business on a small scale, then you can start the business by investing less. If the rent of shop and godown is taken together with 2 to 5 lakh, and other expenses together with 3lakh to 6 lakh, then you will have to invest 5 to 9 lakh in this business. At the beginning of the business of Spare Part, you will also have to incur other expenses like the salary of employees and electricity expenses.
Location for Automobile Spare Parts Business
When you start a business, you need a lot of space. If you want to start an auto spare parts business, you will need a little more space to set up both a shop and a godown. but bear in mind If you want to run an Automobile Spare Parts Shop on a tight budget, open a shop in or near a specific market in the city. Therefore you need 300 Square Feet To 500 Square Feet of space for the Auto Spare Parts Business.
When selecting a location, the entrepreneur should select a location where an auto spare parts shop does not already exist. By doing so, the entrepreneur will see less competition at that specific location, which will benefit the entrepreneur’s business.
License for Automobile Spare Parts Business
Wherever you plan to open a Spare Parts store, you must first obtain a licence from the state’s local municipality. as well as, Must be registered under the Indian Shop and Establishment Act. On the other hand, obtain the necessary licences for opening the store, selling spare parts, and carrying the necessary insurance. In addition, you can apply for MSME Udyog Aadhaar Registration online. GST Registration is currently required to start a commercial business in India. If you are unfamiliar with the process of obtaining a licence, you can seek professional advice.
Prepare the Auto Spare Parts List
Now that the entrepreneur has the necessary space and tax registration to begin the auto spare parts business, the entrepreneur should prepare the necessary spare parts list for his shop. While preparing the list, it is very important to keep in mind the results of the Feasibility Report made initially. So that the entrepreneur can order spare parts as per the requirement. Although the list of required spare parts varies according to the requirement of the customers. So, To order and buy them from the market, it is very important to have knowledge of auto spare parts.
Select the Distributor and Order for Your Business
The entrepreneur will now require the goods for his auto spare parts business. Every company’s distributor is easily accessible in almost all major cities. The entrepreneur should talk to the distributor of different companies and get Spare Parts at his shop. And if the entrepreneur wants the company whose products to start selling more, then his dealership can also be taken. And you will get more profit if you keep good dealings with the distributor, then you will always have the parts available in your shop and you will be able to make a good income.
Marketing for Automobile Spare Parts Business
Finally, it is time to market your business. It requires a lot of promotion and advertising in the beginning. Furthermore, the success of this type of niche business is heavily reliant on B2B networking. You must make contact with other companies in the industry. Automobile shops, for example, frequently purchase spare parts in bulk. so, You could give them a special discount. And, Consider selling online as well. You can’t ignore internet audiences in today’s digital age. You can sell auto parts through online marketplaces or your own online store.
If you do business in the field of spare parts business, then you have the opportunity to make great progress, which is increasing continuously in this field every year. So, You must set up the store properly, And an outdoor sign is a must. Also, double-check the electrification, counter space, and shelves. Also, hire the right people. Initial employees play an important role in the success of any startup business.
And, check to see if you require the services of a licenced mechanic. Additionally, if you want to open the store with a workshop, keep an automobile engineer on staff. Finally, You can expect a profit margin of 30% to 50% in the Auto Spare Parts industry. As a result of this, you can make a lot of money in this business.