Automobile Spare Parts Business in India
The first step towards establishing an automobile spare parts business in India is to register your business. The next step is to apply for GST registration, business license, and Shops and Establishments Act registration. You can also opt for MSME registration online to avail the tax benefits and other government incentives. The cost of automotive spare parts is generally purchased in bulk from the manufacturer. The business plan you create should specify the number of parts you will need to start a successful business.
The auto spare parts business can be categorized into two main types – wholesale and retail. Wholesale automobile spare parts businesses are based in a shop. Retail automobile spare parts businesses are operated by the owner directly or through distributors, while wholesale auto spare parts companies operate in a warehouse. If you choose the latter, the cost of starting a wholesale operation will be much higher than establishing a retail store. But, the profit potential is higher as you can sell parts to customers directly.
While it may not be possible to start a manufacturing company from scratch in India, the automobile spare parts industry in India has immense potential. With its growing economy and technological advancements, the country has emerged as a global auto component manufacturing hub. The automotive component industry in India is estimated to reach US$104 billion by 2020. The automotive spare parts industry in India is divided into passenger cars and commercial vehicles. The automobile spare parts industry is a great place for foreign investors, as major manufacturers can source most of their parts in the country.
While the Supreme Court temporarily blocked the CCI’s order, the decision also implies that auto manufacturers must protect their products against counterfeiters by securing IP protection through design registration. The auto industry has a long way to go to protect its consumers. The automobile spare parts industry has many challenges ahead, which include counterfeiting. Counterfeiting not only affects the business of trademark owners, but poses a huge risk to the health of consumers. If not prevented, counterfeited parts can cause substantial damage or even life threatening situations for the unwary consumer. Counterfeiting also constrains supply for original component manufacturers.
Revenue growth in the automobile industry is expected to continue slowly until 2016, as the country’s per capita income rises. The industry also experiences favorable trends in car usage, which have increased demand for auto parts in the short term. However, the growth of the industry is expected to be moderate because of advancements in vehicle technology. As a result, the automobile spare parts industry in India is highly dependent on the automobile industry’s growth.
While the automobile spare parts industry has flourished in recent years, the competition is still high. In addition to the traditional retail and wholesale business, many online auto parts companies are now offering aftermarket auto parts and services. With an online marketplace, buyers can find the spare parts they need and book them through their smartphones. This means they can save time and money while at the same time provide a valuable service to their customers. A lot of spare parts companies have started in India because the demand for these parts is increasing each day.
