Starting An Automotive Franchise

on Mar 24, 2021 | 11135 views

Written by Nony Nema                                                                              March 24,2021

The automotive industry comprises a wide range of organizations and companies involved in the design, development, manufacturing and selling of motor vehicles. It is one of the world's largest industries in terms of revenue. In today’s market, brand new vehicles are being launched now and then, therefore the automotive franchise business, in India is a booming sector. According to reports, India is supposed to be the seventh-largest producer of vehicles in the world and it is expected that 6 million-plus vehicles will be sold each year in the country by 2020. The automotive industry in India is considered to be the fifth-largest in the world (fourth largest in 2018, a bit ahead of Germany, then back to fifth the following year). 

The automotive franchise opportunities in India also include areas like a car franchise dealership or an automotive spare parts dealership. The different Automotive Franchise opportunities include- automobiles franchise, automotive parts, car repairs, car service centre, car sales, etc. The Indian automobile industry is the 4th largest in the world and is continually progressing every day. The most important news here is that the global automotive industry is expected to reach $722.8 billion by 2020. 

An entrepreneur has to input a lot of effort, and face many challenges while stepping into the automotive franchise business. If you have a liking for cars, you can turn this liking into a much bigger aspect by opening an automotive franchise. When it comes to starting your automotive franchise, it can be a bit costly, but franchising also assists in starting and running your own franchise business. 

Steps required to start your own Automotive Franchise-

  1. Decide what type of automotive franchise you want- There are a wide variety of automotive businesses present that deliver different services that customers need. One needs to choose the one that one is most interested in. There are many options to choose from like- Auto glass franchises, Car rental franchises, transmission franchises etc. After choosing the right one, you need to contact these franchises to get more information about the opportunities offered by them. The franchisor will then provide you with a franchise prospectus, which explains the franchise opportunity and the key features in detail. After going through all the formalities you can now set up an appointment to meet the franchisor and thereby obtain the contact information of franchisees and review the Franchise Agreement with an advisor.
  2. Prepare a strategic business plan- A proper business plan should include important details like an overview of the automotive industry, a description of business, finances, marketing, and staffing, etc. 
  3. Finance-Obtain funding- You also need sufficient funding to kick start your business. If you opt for a loan, it can be done through friends and family or also with the help of a commercial bank.
  4. Selection of location- Find out the location best suitable for your franchise. Keep in mind the convenience of customers and the distance factor as well. Franchisors also help sometimes in negotiating a leasing agreement.
  5. Essential Paperwork- Find out about the important licenses required to operate in an auto-related business. 
  6. Necessary equipment- With an automotive business, capital expenditures may be usually high. As a franchisee, the automotive franchisor should be able to help you purchase any necessary equipment required in operating the franchise business. 
  7. Hiring- People are the most important aspect of any business undertaking. Hiring and managing the right employees will play a crucial role in growing your new business.
  8. Promotional campaigns- If the franchise already has an established brand name, investing in an automotive franchise will pay off greatly. 

Top Automotive Franchise Businesses of India-

  • Mahindra First Choice- Mahindra First Choice Services (MFC Services) is India’s largest chain of multi-brand car workshops with over 315 car workshops. Mahindra First Choice launched the initiative for car servicing which allows car owners to service their cars themselves. Mahindra First Choice offers franchise opportunities in two modes for those wishing to establish a business in the automobile industry, Mahindra First Choice Wheels, and Mahindra First Choice Services. The company was founded in the year 1999 and has been franchising since 2003 with around 1000-10000 franchise outlets.
  • 3M Car Care- The 3M Company, formerly known as the Minnesota Mining and Manufacturing Company, is an American multinational conglomerate corporation operating in the fields of industry, worker safety, health care, and consumer goods. The company was founded in the year 1950 and has been franchising since 2017 with around 50-100 franchise outlets.
  •   Autotech- Autotech manufactures precision products for automotive and diesel engine applications. The company also specializes in engine, transmission, clutches, axle, fuel system, chassis, hydraulic components, and assemblies. Autotech is the only supplier of such a high-performance Armor Film / Paint Protection Film in India at a reasonable price. The company was founded in 2013 and started franchising in 2014 with around 200 franchise outlets.
  • AAMCO – AAMCO is a locally owned and independent service centre that employs the latest technology and the expert technicians who diagnose your repair, fix it right and back it with a nationwide warranty. The company was founded in 1957 and has been franchising since 1962 with around 670+ worldwide franchise outlets.
  • Auto Herb- Auto Herb is a brand with a unique mechanized car cleaning concept where cars are getting pampered by the latest equipment including high-pressure cleaning machines, spray extraction machines, high-powered vacuum cleaners, and steam cleaners & so on. At Auto Herb, research on car care and maintenance is thoroughly done, to deliver the best of service and bring in new concept to the car market. The company was founded in 2014 and has been franchising since 2015 with around 20 franchise outlets.
  • Wheeler Cleaner- Arc Wheeler Cleaner Pvt Ltd is a top and well-known Car Spa and Cleaning and washing services in Hinkal, Mysore which is also known for Car Care Product Dealers, Car Polishing Services, Car Upholstery Cleaning Services, Customised Car Painting Services, and Car Painting Services. It was founded in 2013 and is franchising since 2014 with around 100 franchise outlets.

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 Tags:     #Low investment business franchise in India

             #New service business ideas in India

             #Top franchise business in India 




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