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Automobile Repairing - Project Report Business Plan

Automobile Repairing - Project Report Business Plan

Automobile Repairing - Project Report Business Plan

NeuSource Startup Minds India Ltd. is a leading consulting firm that helps entrepreneurs and startups set up their business ventures. One of the most common business activities in urban and semi-urban areas is an automobile service station. It is essential for all vehicle users and can be established with a low investment.


Product and Its Application:

Automobile service stations are service-oriented businesses where the basic parameter is the quality, reliability, and cost of services rendered by the unit. Various types of vehicles require experienced manpower to instill confidence in the customer base.


Desired Qualifications for Promoter:

The promoter with hands-on experience in the vehicle repair business and a Degree/ diploma qualification and training in automobile engineering/ diesel engines will be able to manage the project well.


Industry Outlook/Trend:

The Indian auto industry is one of the largest in the world, accounting for 7.1 percent of the country's gross domestic product (GDP). The Two Wheelers segment, with an 80 percent market share, is the leader of the Indian automobile market owing to a growing middle class and a young population. Moreover, the growing interest of companies in exploring rural markets further aided the growth of the sector.

The Indian automotive spare component - aftermarket is estimated to grow by around 10-15 percent to reach US$ 16.5 billion by 2021 from around US$ 7 billion in 2016. It has the potential to generate up to US$ 300 billion in annual revenue by 2026, create 65 million additional jobs, and contribute over 12 percent to India’s gross domestic product.


Market Potential and Marketing Issues, If Any:

There is a good demand for automobile service centres due to the huge increase in the number of vehicles in recent years. With the essential nature of service and repair, the owner of vehicles around a specific location will have an increasing demand in cities/urban areas, especially for business people and salaried persons.

The Indian auto-components industry has experienced healthy growth over the last few years, attributable to factors such as a buoyant end-user market, improved consumer sentiment, and the return of adequate liquidity in the financial system. The auto-component industry in India has expanded by 14.3 percent because of strong growth in after-market sales.


Raw Material Requirements:

While the services are skill-based, the most important materials are grease, oil, compressed air, power, water, etc. Consumables and utilities are required. However, the unit may require vehicle-specific spares for repair, and they are charged at normal trending market prices.


Manufacturing Process:

It is a service-oriented unit, so different services like cleaning/washing/polishing of vehicles, engine, gearbox, suspension, silencer, etc., servicing, brake wire replacements, etc., and general repairs can be taken up for 4-wheel vehicles. Body repairs and painting are also undertaken for the vehicles.

In conclusion, automobile service stations are essential for the proper maintenance and repair of vehicles, which is critical for their safety and durability. NeuSource Startup Minds India Ltd. can assist entrepreneurs and startups in setting up their business ventures, including automobile service stations, with low investment and a high potential for growth. With the growing demand for such services, there is a great opportunity for entrepreneurs to establish and grow their businesses in this sector.


Manpower Requirement:

  1. Highly skilled service persons are needed for vehicle and system-specific services such as engines, electrical systems, and body repairs.

  2. The unit can start with six employees and increase to 25 or more depending on business volume.

  3. Equipment and tooling are available from local manufacturers, and proper selection is important for modern and flexible servicing.

  4. Machinery dies, tool suppliers, and consultants are available at several industrial clusters all over India.


Profitability Calculations:

  1. The unit has the capacity to service 500 cars and large auto vehicles, and 1500 two-wheelers/small vehicles, including modification/major repair work.

  2. The average billing for service and repair varies from 300 to 1000 for 2-wheelers and 2500 to 10000 per vehicle for cars and SUVs.

  3. Material requirements are almost nil as parts are replaced and consumables are charged for.

  4. Energy costs, depreciation of plants, and interest costs are also considered.

  5. Old worn parts wastage/scrap can be sold at Rs 20–80 per kg, depending on the type.


Statutory/Government Approvals:

  1. The unit may obtain industry unit registration from the district industry centre.

  2. Shops in city areas shall need to get shop and establishment registration from the local municipality, etc.

  3. GST registration is needed for the procurement of spares and materials and the sale of goods and services.

  4. A safe environment and solid waste disposal must meet the required norms.


Backwards and Forward Integration:

  1. Machines and equipment offer scope for diversification into servicing other consumers and industries.

  2. Organic backward or forward integration has limited scope.

  3. Building up the reputation, ensuring the reliability and quality of services rendered, and building personal rapport with key people can generate good business volumes.


Training Centers/Courses:

  1. Most of the training is given by auto vehicle manufacturers upon getting authorized service stations or through apprenticeships with experienced vehicle repair shops.

Starting a vehicle servicing and repair unit can be a profitable business opportunity. With the proper selection of equipment, skilled manpower, and adherence to required norms, one can build a good reputation and attract corporate fleet owners and vehicle producers for authorized service station franchises. NeuSource Startup Minds India Ltd. offers support and guidance to entrepreneurs looking to start this business venture.


How can NeuSource Startup Minds India Ltd. help?

NeuSource Startup Minds India Ltd. can provide valuable assistance to entrepreneurs and startups looking to establish an automobile service station. Here are some ways in which NeuSource can help:

  1. Business Planning: NeuSource can assist in developing a comprehensive business plan for the automobile service station, including market research, financial projections, and marketing strategies.

  2. Legal and Regulatory Compliance: NeuSource can provide guidance on obtaining necessary licenses and permits, complying with environmental and safety regulations, and registering the business.

  3. Funding: NeuSource can help identify potential sources of funding for the startup, including loans, grants, and equity investments.

  4. Human Resource Management: NeuSource can provide guidance on recruiting and training skilled service personnel and developing an effective organizational structure.

  5. Marketing and Promotion: NeuSource can assist in developing marketing and promotional strategies to attract customers, including advertising, social media, and local outreach.

  6. Operational Support: NeuSource can provide ongoing support in areas such as supply chain management, inventory control, and quality assurance.

Overall, NeuSource Startup Minds India Ltd. can provide comprehensive support and guidance to entrepreneurs looking to establish an automobile service station, from the initial planning stages to ongoing operational management.

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28 Apr

Santosh Dantani
Santosh Dantani

To start a new business is easy, but to make it successful is difficult . So For success, choose the best." Be compliant and proactive from the beginning and choose NEUSOURCE as your guidance partner.

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