Are you looking for automotive business ideas to start a small business in the automobile industry? Let’s suggest some of the best automobile business ideas for people like you who wishes to be successful entrepreneurs in the industry.
Since the invention of automobile, a lot of business opportunities have been created around the automobile industry. In 1929, before the great depression, the world had only 32 million automobiles in use, and the U.S. automobile industry produced over 90% of them.
Meanwhile, a total of 84 million vehicles were produced in 2012 alone. Read Great Business Ideas That Will Thrive.
As the U.S. marketplace and auto industry begin to take the first careful steps moving towards recovery from the worldwide COVID-19 hit, a group of analysts at Cox Automotive worked out to asses how COVID-19 reshaped automobile retail in the U.S. Unquestionably, the quick impact on auto sales was obvious and hard, with new-vehicle sales off near 70% in extremely impacted areas.
During the COVID-19, European car market plummeted 80 percent. Auto manufacturer may not be as motivated to sell electric cars in near future. Plunging sales could force small factories of the industry to close and lead to mergers and takeovers, but also hold up sales of cars.
The Best Automotive Business Opportunities
According to a J.D. Power study, emerging markets accounted for 51% of the global light-vehicle sales in 2010. Automakers had at least 20% more factory capacity than they needed before the COVID-19 hit, analysts say.
So, there is a bigger chance of mergers and takeovers as more than half of the capacities of the factories are closed.
Although, there is a hope of reopening soon but the COVID hit has impacted the industry entrepreneurs; making it easy for new aspiring people to come to this industry.
Start Vehicle Manufacturing
According to automobile industry specialists, an even more speedy growth is anticipated as the category expands further with more choices for consumers in near future after the pandemic. So, if you have the capital, you can start vehicle manufacturing business.
Elon Musk just unveiled the company’s first electric pickup truck, also known as Cybertruck just before the pandemic. Why can’t you make something unique like that? All you need is motivation.
This is the advance level of the influential manufacturer such as Toyota, Ford, General Motors, etc; yet, there are small companies also in the game.
Vehicle Assembling Business
The automotive manufacturing industry is one of the biggest industrial sectors by revenue, with activities that include the engineering, research and design, tech developing, manufacturing, assembling, distribution, marketing, sales and repair of automobiles or motor vehicles.
It is anticipated that the auto industry is on the verge of transformation, and that the development it experiences will create new business opportunities well ahead of the showroom floor. You could think of Assembling these vehicles with some good capital.
Become A Car Dealer
The process of becoming an auto dealer has many perspectives and requires careful planning. Opening a dealership can be a very profitable and worthwhile decision. When planning to open a dealership, one of the important choices you need to make is whether to sell new vehicles or used ones. Why not go for both?
Why become a car dealer? Becoming a car dealer comes with a flexible work schedule along with a good profit and the ability to scale one’s business according to one’s plans. For those with an aspiring entrepreneurial spirit, it is a great way to put their business sense to use.
It is one of the automotive business opportunities where you will learn a lot about the industry with a comparatively low investments. The automotive business needs education, practical knowledge and experience.
Become a Spare Parts Importer
According to a CRS report about the imports of motor vehicles, more than 30 countries sold more than $100 million in automotive parts in the United States in 2017
Before starting this venture, you need to know about the difficulties while importing auto parts. There is a 2.5% tariff on most imported Chinese auto parts. And as a supplier, you need to manage customs processes quickly to your advantage to get a competitive edge.
It’s great to take upstream procurement processes into account as well. Spare parts suppliers need to know exactly which parts can be obtained how quickly and with what lead times. If consumers have been promised rapid response times one or two weeks, that should be met.
Start a Vehicle Respray Business
Commercial vehicle respray is a lucrative automotive business idea. You will need a vehicle spray booth/oven and a paint shop; large enough to accommodate even the largest commercial vehicles.
What is a vehicle respray? A vehicle respray process consists of repainting either select panels or the entire body of a vehicle. This usually costs a few thousands depending on the type of vehicle.
How much does a vehicle respray cost? The basic panel resprays can start around the $250 mark and reach into the thousands if you have a complex metallic paint finish on your vehicle.
Start an Auto Repair Service
Any business with cars has a good return on investments. Starting an auto repair service could be a great idea if planned well. When something feels off with vehicle, people don’t hesitate to bring it to auto repair service.
Most of the time, various specialized auto repair shops will have varied infrastructure and facilities, as well as technicians and mechanics with different qualifications.
Start a Car Rental Business
Automobile rental businesses are badly impacted by COVID-19 pandemic. You can easily buy an almost drowned car rental business with a moderate investment.
What are the costs involved in opening a car rental business? The company will need a fleet of vehicles, an office location, computers, software, printers, high-speed Internet, the installment of incorporation fees, insurance for the business and vehicles, car repair tools, a security camera system, employee wages, and marketing campaign.
Setup a Mobile Car Wash Service
A mobile car wash is a service that ensure the customers lives at ease. The wash boy will come to your apartment and clean your vehicle and all you need to do is give him the keys and money.
Additional charges can be taken for extra services such as excessive pet hair, mold/mildew, human or animal bio wastes, and excessive dirt removal with a car wash.
Start a Vehicle tracking and tracker Services
A vehicle tracking system combines the use of automatic vehicle location in individual vehicles with software that collects these fleet data for a comprehensive picture of vehicle locations.
The APTA estimated that, at the beginning of 2009, around half of all transit buses in the US had already installed a GPS-based vehicle tracking system to trigger automatic stop notices.
This could be a great venture to start if you have the relevant skills and investment. Many modern vehicle tracking devices combine both active and passive tracking abilities. So, just get started!
Car Accessories Business
Starting a car accessories business may seem like it needs a heavy investment to begin with, but when planned carefully it can be started without a lot of capital.
Know how to start this business online. More people are opting to make their shopping online rather than waste their gas and time driving out to a packed store.
It is essential to note that the car accessories and auto spare parts business is the business that can’t go out of fashion; this is because of the important role it plays in the auto industry.
Start a Driving School for Beginners
Everyone drives and needs to learn how to drive before they do so. Yeah. This design a business opportunity to open a driving school.
Although most of the driving schools are out of business these days; owning a driving school can be a lucrative business offer if planned carefully.
In addition to the driving school license, a commercial driving school must have a certified instructor.
Setup a Vehicle Customization Company
Starting a vehicle customization business may seem like a huge undertaking, but it can be done with a little investment if planned carefully. Costs for starting a custom car shop vary and generally depend on location.
Customization are done primarily to show off; so the customization charges could vary and go in favor of the shop. Custom car shops can expand to service more customers if they’re opening multiple branch locations.
Since the invention of automobile, a lot of business openings have been created globally around the automotive industry. And the truth is, the industry is still opening up with a lot of technologies and design. Hence, the opportunities are not over.