The car accessories business is lucrative since repairing damaged auto components and accessories is necessary if you want your automobile to keep driving and serve the function you purchased it for. If you're searching for a business to start as a businessman and realise you have a passion for cars, you could consider setting up your vehicle accessories store.
Over 140 crore automobiles are currently on the road around the globe, including around 7.8 crore vehicles being produced worldwide in 2020 alone. We can see how generous this industry is based on these figures. It's worth noting that the vehicle automotive extra parts store industry will never go out of style due to its importance in the automotive sector. The initial investment for this business can be deemed reasonable depending on the extent you wish to start. In reality, by reinvesting your money back into the business, you may establish your automotive accessories and extra parts store and expand quickly.
Did you know?
The growing working population and expanding middle are the key drivers of the auto component industry in India.
Steps for Opening a Car Parts and Accessories Store
Knowing the Car Accessories Business
The automotive parts businesses sector includes stores that sell fresh and used auto parts and accessories and service and install auto accessories. Players in this field can operate a single store in a single location or a chain of stores in multiple locations around India and the globe. Auto dealerships can be found on any part of the planet where automobiles are present. India's auto parts industry has exploded in recent years, thanks largely to increased efficiency and expansion in end-user sectors. This year, India's automotive component exports are predicted to increase dramatically, reaching over ₹15.12 lakh crores by the end of 2026. A careful examination of the Automotive Component Stores market reveals that it does not require much to enter. The truth is that the initial investment required to build an auto parts business, particularly when creating a normal car parts store with items from several automobile manufacturers, is quite significant. However, if you want to open a parts and accessories store like the usual mom and pop shop, you won't have to worry because you'll only need a small amount of money to get started.
The most difficult aspect of the initial cost is likely establishing a source of auto parts through distributors or straightforwardly from auto parts manufacturers. An auto parts company cannot begin without obtaining things to sell. Despite the low entry hurdles, the industry's competitive spirit makes it extremely difficult for startups to break even in a short amount of time.
The demographic makeup of those who shop at car accessories stores spans all genders, men and females over the age of 18 who have economic means and own automobiles; thus, the demographic makeup of the car accessories store industry is diverse. In other words, your targeted audience can't be limited to a specific set of people but must include everyone who owns a car.
Choosing a Niche
When it comes to the vehicle accessories store business, it's crucial to note that there is no identified speciality. Every operator in this industry typically sells a diverse choice of automobile accessories and auto components from leading manufacturers in India and throughout the world. But on the other side, it is worth noting that certain car accessory kits and auto spare parts stores may choose to specialise. These include selling auto components and car accessories, maintenance parts, fittings, engine components, distributing auto components and automobile parts, and fixing automobiles.
Know Who Your Industry’s Biggest Rivals Are
Companies will always function better or be more well-liked by customers and consumers than others. Some of these companies have a long history in the sector, while others are best recognised for how they run their operations and the outcomes they have produced over time.
Following are some of the most well-known automobile accessory and auto spare parts retailers in India
- Jamna Auto Industries
- Usha International Ltd
- Rane Holdings Ltd
- Minda Industries Ltd
- Automotive Axles Ltd
- Munjal Showa Ltd
- India Nippon Electronics
- Menon Bearings Ltd
- Mahindra CIE Automotive Ltd
Choosing a Legal Entity for Your Car Accessories Business
When commencing an auto parts and auto spare parts store, the legal entity you pick will significantly impact the scale of the business. A few car items and auto spare parts stores create their industries for a local market, others for a metropolitan area market, and others for a national market through the franchise model.
For a company such as an auto parts and auto accessories store, you have the alternative of forming a general partnership, a limited liability corporation (LLC), or a sole proprietorship. Normally, a sole proprietorship would have been the best company structure for a tiny automobile accessories and auto spare parts store, especially if you're just getting started with a little startup budget in a small neighbourhood. However, for obvious reasons, many prefer limited liability companies.
Getting an Insurance for Your Car Accessories Business
You can't run a business in India without obtaining some of the basic insurance plan coverages needed by the sector you want to work in. As a result, it's critical to set aside money for insurance and potentially contact an insurance agent to help you choose the most suitable plans for your auto accessories and spare parts store.
Here are some of the fundamental insurance policies you should think about buying.
- Professional liability insurance
- Workers compensation insurance
- Product liability insurance
- Property insurance
- Business interruption insurance
- Vehicle insurance
Protection With Trademarks and Personal Certification
If you're thinking about opening your car accessories shop, you probably won't apply for intellectual property protection or a trademark. The nature of the industry allows you to operate it effectively without ever filing charges to sue someone for using your company's intellectual property without permission. Before opening such a store, you do not need specific training or qualifications. All you need is some unstructured training to learn the ins and outs of purchasing and selling automobile auto spare parts. But on the other side, if you run across any type of certification that might assist you in running your automobile accessories and extra auto parts store, then, by all means, pursue it.
Raising Capital and Making Marketing Strategies
Establishing a car accessories business can be affordable, particularly if you start small by operating an automotive parts store on the edge of town. Safeguarding a well-positioned store with a decent car accessories shop, packing your business with a broad range of car accessory kits from various automotive manufacturing companies will absorb a large portion of your initial money. However, if you choose to establish the company on a large scale, you will have to find capital because starting a conventional large scale auto parts is costly.
When it comes to establishing a business, writing a sound business plan is undoubtedly one of the first, if not the most important, considerations. If you have a decent and practical business plan paper, you may not have to work as hard to persuade to invest in your fire. Owning a business necessitates being active when marketing your services or goods. You must go all out to utilise techniques that will help you attract buyers, or you will probably struggle with the company because well-known companies are dictating the market trend for the industry. Certain marketing methods and concepts that you can use are:
- Send introductory letters and your brochure to vehicle owners, automotive repair, maintenance, and servicing garages to promote your store.
- Join your local automobile accessory and auto spare parts groups to stay updated on industry news and tips.
- Focus on your local store by giving it a proper interior design.
- Advertise our company in daily papers, television, and radio shows.
- To get your idea out, promote it on the web on blogs and forums and social media sites like Twitter, Facebook, and LinkedIn.
Determine a Fair Price for Your Services and Car Accessories Items
Purchasing your automobile components in huge quantities directly from the company is one essential component that will help you sell your things at rock bottom costs. The truth is that the larger the number of things you buy directly from the manufacturer, the less expensive they are.
Hiring Employees for Your Business
This type of business does not require any unique technology or equipment except for POS machines, shelving, and software programmes. You will also require computers, internet access, a phone, and office supplies, which can be obtained as reasonably used. When it comes to employment, you must consider hiring a proficient CEO, an administrative manager, a merchandise manager, a store manager, a marketing and sales officer, accounting staff, and janitors for a normal car accessories store. These are some of the major personnel with whom you can collaborate.
Boosting the Brand and Creating an Identity
Suppose your goal in this industry is to expand beyond the town where you'll be functioning to become a domestic and international company by starting franchises. In that case, you'll need to be willing to spend money on label promotion and advertising. On a local level, you’ll have to be a trusted car interior decoration and accessories supplier with your name included in the top local car accessories list.
Whatever business you're in, the truth is that the market is constantly changing, and you'll need to maintain consistent brand awareness and boost cum promotion to keep your target market interested. Your corporate identity plays a significant role when developing a successful and long-lasting firm.
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting