Académique Documents
Professionnel Documents
Culture Documents
Introduction
The automobile industry in India has a strong prominence in the overall economy of the country. According
to the Society of Indian Automotive Manufacturers (SIAM), Indian automotive sector today is a $74
billion industry and by 2026, the industry is expected to achieve a turnover of $300 billion.
In India, small-scale automobile business is considered as a small business opportunity for rural, suburban
and metro cities.
The Two Wheelers segment with 81% market share is the leader of the Indian Automobile market owing to a
growing middle class and a young population. Moreover, the growing interest of the companies in exploring
the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has
13% market share. Domestic sales of Passenger Vehicles grew by 8.13 per cent in April-January 2016 over
the same period last year.
Increasing vehicle population and increasing spending capacity are the two major reasons that have created
automobile business opportunities for small entrepreneurs.
Market Potential
Auto accessories store is one of the most profitable automobile business ideas in the retail segment. After
every purchase of vehicle regardless two-wheeler or four-wheeler, owners are used to visiting an auto
accessories store. According to the local market demand, accomodating the right product range for the
customers is the key concept. Spare parts industry has a huge potential in India
Promoter
The promoter has the previous experience to start this business on his own. He has 15 years of experience in
Bajaj Automobiles as a Service Supervisor. His expertise in the Automobile spares and service opened ways
for a new startup, He has the ability to start this business as an authorized spare parts dealer of a renowned
vehicle manufacturing company. But he wants to start a multi-brand spare parts retail outlet as a startup and
later expand to future market.
Location
The mechanics are almost travelling 30 kms to kurnool to get the spare parts which makes total 60 kms travel
and 2 hours journey to and fro.
The present retail unit planned is located at the premises of the Automobile workshops of the target group in
a rented building, accessible to all the mehanics of the town and the surrounding villages. The Automobile
spare parts retail outlet location is - Baireddy Comlex, Opposite to RTC Bus-stand & Depot, Nandikotkur
Taluka & Mandal, Kurnool District, Andhra Pradesh (state). There are totally 25 service workshops in the
Nandikotkur Mandal and about 25 service workshops in the surrounding villages. They all need a nearest
location for spare parts for easy access and save both time and money.
Sales – Two Wheelers Business per day Rate Total Amount per Annum
Bajaj Automobile spares - Rs. 7000 / per day 21,00,000 / per annum
Hero Automobile spares - Rs. 5000 / per day 15,00,000 / per annum
Honda Automobile spares - Rs. 4000 / per day 12,00,000 / per annum
TVS Automobile spares - Rs. 2000 / per day 6,00,000 / per annum
Means of Finance
Total 1,70,000
B. Working Capital
1. Land & Building Rent to Shop Rs. 10,000
2. Spare Parts, Lubricants and Salary & Wages
Total 7,75,000
Total 8,000
4. Other Expenses (per month)
S.No Description Amount Rs.
1 Postage & Stationary Expenses 1000
2 Repairs & Maitenance 1000
3 Miscellaneous Expenses 1000
Total 3000
Total 8,06,000
Total 98,42,000
S.No Sales – Two Wheelers Business per day Rate Total Amount per Annum
1 Bajaj Automobile Spares Rs. 7000 Rs. 21,00,000
2 Hero Automobile Spares Rs. 5000 Rs. 15,00,000
3 Honda Automobile Spares Rs. 4000 Rs. 12,00,000
4 TVS Automobile Spares Rs. 2000 Rs. 6,00,000