motorcycle parts business
The two-wheeler sector especially the motorcycle parts business has been growing slowly and steadily for the past many years. As the income of people is increasing, people prefer to buy vehicles and they also incline to travel from one place to another. So, the number of two-wheelers is increasing very rapidly in the country. As we all know, a two-wheeler is manufactured using different types of spare parts.
Any motorcycle spare part needs to be replaced throughout its life due to repeated wear and tear. In that situation, the person will go to a mechanic, then he will inspect the two-wheeler and request to replace the damaged spare part. Then he will go to the spare parts store to buy the two-wheeler spare part and replace it. Therefore, starting a motorcycle parts business is an evergreen business. So, If you plan to start up a two-wheeler parts business, then this article will provide you with all the information about this business.
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The market scope for a Motorcycle spare parts shop is wide and promising, with the increasing number of two wheelers on the road and increasing demand for maintenance and repairs. As personal vehicle numbers rise in both cities and countryside regions there is ongoing demand for spare parts ranging from typical wear-and-tear items to elite performance parts. Also, the demand for second-hand two wheelers grows and usually necessitates a need for regular component changes. According to a report, the global two-wheeler aftermarket component and consumables market is expected to reach USD 58 billion at a CAGR of 7% during the forecast period of 2023 to 2033. Additionally, the expanding aftermarket industry provides a lucrative opportunity for Motorcycle parts stores to cater to a wider customer base, including individual vehicle owners, repair garages and Motorcycle service centres.
Understanding the business is also one of the most important aspects that you need to consider before starting this business. Starting this business does not demand any kind of educational degree, but, it is still very important for you to have a clear knowledge of the internal industry. Therefore, to gain more knowledge about the business, you can work in another established shop for a few weeks or months. Then you will get a clear knowledge of the specifications of various Motorcyclespare parts. Apart from this, you will be known to advise your customers about what will be right for them to buy and what will not.
After understanding the spare parts business, now the entrepreneur should prepare an estimated feasible report for the Motorcycle spare parts business on the basis of his discretion and thinking power. This report will cover various points such as which company’s Motorcycle spare parts are in the highest demand in the local market where the entrepreneur is planning to start his business. That means you have to identify the different models of bikes that are in large numbers in the city. And, which spare parts company’s products are used by that manufacturing company, and more. has to be analyzed. It will also help you understand the potential competition from other operators.
Location plays a very important role in the success and failure of the Motorcycle spare parts business. So, you should choose your business location correctly with high visibility and easy accessibility. Also, ideally near areas with a concentration of vehicle repair workshops or in a bustling commercial zone. Shops near busy roads will gain a larger clientele focused on quick repairs. The space required for an Motorcycle parts store depends on the size of the business and the range of products offered. For small and mid-sized stores a space around 300 to 500 square feet is enough. And, if you start with a large variety of accessories, a space of at least 1000 square feet and more is mandatory for a shop.
You need investment from the very beginning of a spare part shop, in this you have to invest to buy various types of goods and your investment depends on the place where you are going to start the business. Because starting this business on a large scale requires a lot of investment. If you start this business on a small scale, then you can start this business by investing less. If the rent of the shop and warehouse is taken with 2 to 5 lakhs, and other expenses 3 lakh to 5 lakhs, then you will have to invest 5 to 10 lakhs in this business. Also, at the start of the spare parts business, you may have to incur other expenses like employee salaries and electricity costs.
The next step is to obtain the necessary permits and licenses, to open a two-wheeler spare parts shop anywhere in India, you must first obtain a verified license from the local municipality of the state. Also, registration is mandatory under the Indian Shops and Establishments Act. Second, get the necessary licenses to open a shop, sell spare parts and get the necessary insurance. Apart from this, MSME Udyog can apply online for Aadhaar Enrollment. Currently, GST registration is required to start a business in India. If you are not familiar with the licensing process, you can seek advice from a professional.
After successfully completing all the necessary steps, the next step should be to prepare the spare parts list required and find suppliers for his shop. To find suppliers of Motorcycle spare parts for your shop business, you can explore various options. So, you can start connecting with authorized dealers and distributors of leading two-wheeler brands like Hero, Bajaj, Honda and TVS offering genuine spare parts. Additionally, you can also use online B2B platforms like Indiamart, TradeIndia and Amazon Business, which offer a wide range of suppliers across the country. And if the entrepreneur wants, he can also take the dealership of the company whose products start selling more. To make sales and profits and meet your customer’s needs, you need a reliable supplier who can provide high-quality products at decent prices.
In the early days of Motorcycle spare parts business, your business needs huge promotion and publicity. First, you need to reach out to other businesses in the industry. For example, two-wheeler workshops often buy spare parts in bulk, so you can offer them special discounts. You can create banners for your business, print announcements and distribute them in your local area. Consider selling online In today’s digital age, you can’t ignore the internet. So, open a social media page and start promoting your store. You can sell two-wheeler spare parts on online marketplaces or from your own online store. So, that helps you get your name out among the target audience and create demand.
Due to the large number of two-wheelers on Indian roads, the demand for spare parts is stable, contributing to stable revenue and long-term profitability. However, the profit margin in the two-wheeler spare parts shop business varies depending on factors such as location, brand offerings and customer base. On average, the profit margin on individual spare parts can range from 20% to 40%. By sourcing parts directly from manufacturers or wholesalers, higher profits can be achieved, thereby reducing costs for shop owners.
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