how to start automobile spare parts business in india

How to Start Automobile Spare Parts Business in India

Many people among us are thinking about how they can start an automobile spare parts business in India. Whether it’s motorcycle spare parts, car spare parts, or other vehicle equipment. Starting an automobile spare parts business is not that complicated. Because it’s not much different from starting other shops.

Maybe when you want to open a spare parts shop or a business (opening a shop is also a business), the first problem you may face will be the capital you should invest. Of course, this will happen because a business will definitely require capital. Especially if you want to open a shop.

But all these obstacles can actually be overcome if you have a strong intention and take action.

Investment for Automobile Spare Parts Business

The investment that you must take into consideration when you go to open your automobile spare parts business is the legal procedures, getting the place, etc.

Approximately in India, you should invest around 25 lakhs to start this business. You will require multiple things for this business to start like tools, glasses, licenses, employees, etc.

Automobile Spare Parts Business Plan in India

The first problem you may face in the automobile spare business is capital. The capital to open a spare parts shop is certainly not small. Therefore you have to rack your brain to get the capital.

If you are an entrepreneur who has a lot of capital, of course, this problem will not be meaningful. But when you are an entrepreneur who is a beginner and does not have much capital then this might be a problem.

There are several ways that you can do to overcome this problem, namely:

  • Open a spare parts shop with family, relatives, or friends who can be trusted so that capital can be divided into several people who will lighten your burden.
  • Selling or mortgaging the assets that you have but is not really recommended because selling assets is not one of the best solutions.
  • You can’t repay the loan because a capital loan from a financial institution will of course have a certain percentage of interest.

You need to know, to start an automobile spare parts business will require a capital of around 25 to 100 lakhs, depending on your business type.

How to Start Automobile Spare Parts Business

Here are the steps that you should follow to start an automobile spare parts business in India:

Selection of Spare Parts

To start this business, of course, you have to determine what is the main product that you will sell? Because if you don’t have a large capital, of course, you can’t have spare parts to sell to the customers.

This may not have an effect when you have a large capital. But if you are not an entrepreneur who has large capital. The steps you have to do are:

  • Choose one of the spare parts that are often needed by the people, you can see through the location of the store you are managing, understand what the community around your store needs.
  • Choose one type of spare part if you don’t have a large capital.
  • Avoid the types of spare parts needed by branded vehicles if you sell in urban areas but there’s nothing wrong with selling branded vehicle spare parts if you have more capital.

Location of Spare Parts Business

The best location, of course, is a location that is in a strategic place. For example in the market or a crowd. But you don’t need to do this if the capital to rent the location is very expensive. You should use this capital to complete spare parts products that will be sold in stores.

The best location is of course around the market, because there will be many people looking for needs to the market. But at least if you can’t rent the location, you can open a shop on the side of a busy road. The most important thing is the completeness of the products in your store because this is more effective at attracting consumers.

Selecting the Supplier

It is also very important to develop the spare parts shop that you are managing. We recommend that you look for suppliers or spare parts agents from spare parts sales companies to supply products at the store you are managing. So you don’t have to shop and you don’t have to think about new products that are trending among the public.

A supplier will find out what products are most sought after by consumers. So that you will be more helpful with it. However, if you don’t get a spare parts supplier or agent, you should look for a first-hand wholesale shop. So you will get a fairly cheap price and compete with other stores.


The last most important part is to introduce the store to potential customers. Especially to young people.

Why should young people?

Young people were chosen because they often buy spare parts for motorbikes or other vehicles even though they are not really needed. This is based on the modification hobby they have.

The best way to promote spare parts or spare parts shop business is to hold a modification contest. Whether it’s a 2-wheeled vehicle or a 4-wheeled vehicle. Depending on the type of product sold in your shop.

In addition to the steps above, an important part that must be done is to provide as many spare parts as possible. Because this will affect the interest of buyers.

To determine the selling price, please observe the prices of other stores as competitors. Do your research first. After that decide whether to set a cheaper price or the same as the competitor’s shop.

After you complete all these steps you will be able to estimate the cost of starting this business.

Advantages of Starting Automobile Spare Parts Business

Setting up a spare parts business for cars is an advantage because different options could be offered for vans, trucks, motorcycles since transportation has become a basic necessity.

Before even having a shop of their own, people acquire a means of transport, which has a high value in saving time, independence, status, among other reasons.

Another advantage is that, by studying the market, you can find a need that has not been fully covered and that hardly anyone takes care of. They can be products that competitors do not sell, and another advantage is the internet sales, the price range, and the suppliers that supply the auto parts.

All these aspects mark advantages to be in the spare parts market and be competitive.

Auto Spare Parts Business Profit Margin

In India, the automobile spare parts business has great potential to earn profits. You can earn 15% to 20% profit on the spare parts business. Although, there many things that are required to earn profits.

If you start this business you need to take care of many things like having available stock and good promotion strategies.

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Irfan Hassan
My name is Irfan Hassan and I've done MBA in finance and marketing. I am a blogger by passion and love to share ideas about businesses that you can start and earn your livelihood. Visit about us page to know more about me and my blog.

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