Franchise- Automotive’s Very Own Niche

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Automotive Business 

Automotive sector is amongst the highest contributor to India’s GDP. It’s presence and appeal are increasing every day, not just from a user’s perspective but also as a business / service provider.  India’s low car density (24 cars / 1000 persons) compared to Western World, provides ample opportunities to grow this space and when coupled with changing business scenarios in automotive such as ride sharing / ride hailing / car leasing there are several untapped opportunities that can be cashed-in the next 5-10 years.  For example companies like Mobycy, Revv, Drivezy, Zoom Car, Ola, Blu Smart,  Uber, Smart-E. The used cars business in India has also gone organized with companies like Olx, Car24, Mahindra First Choice.

Franchise + Automotive = Opportunity?

Franchise business in India, as lucrative it is for the other sectors such as food / apparel / education etc., is also an interesting and ever-growing space for the automotive industry as well. It attracts people from all realms and the investment is always worth the shot. Franchise opportunities in automotive sector of India can largely be classified into the following :

  1. Service Driven – This includes some of the newer trends in automotive such as ride hailing / ride sharing / car leasing where the assets are shared with the public and the conventional one’s such as car wash (both manual & automatic), repair & maintenance centres etc.
  • Product Driven – This includes more capital-intensive businesses such as dealerships, spare parts store, used car outlets, auto accessories etc.

Both Service Driven & Product Driven franchise opportunities will have the key advantages of a Franchise business such as

  1. Ease of Operations– Responsibilities are clearly divided between the Franchisee and Franchisor which helps to run the business smoothly and efficiently
  • Market opportunity – Vehicles on road are increasing every day (nearly 8000 new cars & 50,000 2Ws are sold every day in India) and this provides ample opportunities to serve the users. Also, with the rising ride sharing business models having tasted the success in the Tier 1’s, they can be expected to replicate the same success in tier II cities / villages.
  • Increased profitability in aftermarket – A lot of service driven & product driven franchise models are increasingly profitable as used car, spare parts, auto accessories, car wash etc. OEM services are un-affordable for majority of the people (post warranty) and people are always scouting for a reliable after-market brand name for their service-related aspects. This makes the automotive franchise options highly lucrative and profit oriented.

Crux

From a business perspective, automotive sector has always been lucrative and coupled with the franchise model its attractiveness has gone further up. The untapped market and changing business models based on consumer preferences makes it an interesting sector.

 FranchiseZing features a no of leading automotive brands on the portal for all budgets.

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