Want to start an automobile spare parts business? Keep ‘these’ things in mind for bumper earnings!

The number of two-wheelers and four-wheelers in India is increasing day by day. No matter how modern cars become, their spare parts have to be replaced after a certain period of time. This is why the automobile spare parts business is a highly guaranteed profitable business even within twelve months. If you want to venture into this field, then you can plan based on the following points,

Market research and selection of varieties

Before starting a business, it is important to understand the vehicle trends in your area. Whether there are more two-wheelers or four-wheelers in your area, you may decide to become a ‘multibrand spare parts’ shop or an authorized dealer of a particular brand. Initially, it is cheaper and easier to start with spare bike parts.

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Choosing the right place

The choice of location is very important for this business. Your shop should be in the main market, garage alley or where there are many mechanic shops or along the main road. The premises of the shop should be convenient for customers to park their cars and for mechanics to come and go. A space of at least 300 to 500 square feet is sufficient for this.

Inventory and Market

The success of a spare parts business depends on the availability of your goods. Initially stock up on consumable items like nuts and bolts, engine oil, filters, brake pads, clutch cables, indicators and batteries. For this, buying goods directly from the company’s dealers from large wholesale markets like Delhi’s Karol Bagh, Mumbai’s Opera House or Pune’s Nana Peth can fetch huge margins.

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Mathematics of investment and profit

This business generally requires an initial investment of Rs 3 to 7 lakh. This includes store advance, racks and interior furniture, as well as merchandise inventory. Average profit in this business is 20% to 40% easily. On some local products this profit can be more than 50%.

Networking with mechanics

The biggest solution to grow this business is to build a strong network with local garages and mechanics. Often customers buy parts only on the advice of a mechanic. So you can double the sales of your shop by paying some commission or discounts to the mechanics. This business can give you long time financial stability if you provide good quality and honest service.