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Growth 2015-11-26

Cool returns in car wash business

Car wash industry in India is growing like never before with rising demand for four-wheelers in the country. As the industry is becoming more organised and professionals are coming in, it has given a fillip to franchise expansion pan-India. Let’s have a l

By Sandeep Rana, TFW Bureau Senior Copy Editor

The car market in India is growing at around 10% annually and is estimated to be the fifth largest in the world by 2025. It is also expected to have the highest number of cars by 2050. Thus, franchise car wash companies here have huge opportunities in this sector. Car wash service is likely to exceed $27.4 billion by 2017 globally.

Ever-rising sales of four-wheelers and people preferring a professional solution for best results in the shortest possible time have led to the growth of the car wash market. “At present, most of the domestic players are active in this sector but in the near future western companies will also enter the industry as it has huge potential,” says Brijesh Ghadia, Managing Director, Autozspa.

Related: Start a car-wash business

Industry becoming organised and hi-tech

Brijesh states that around 80 % of the industry is fragmented at the moment and only 20 % players are organised. With more and more organised players coming in, the car wash industry is going hi-tech adopting sophisticated high impact pressure jet wash technology.

“In India, there are no set of rules and regulation about what chemical to be used and what technology to be used on a car for washing. But, awareness is rising and brands are adopting latest technologies to keep the cars clean,” he shares.

Related: A peek into the Car washing business

Huge scope in metro, tier- I & II cities

In metro, tier- I and II cities, cars are bought in huge numbers and almost every household has a car on an average. This throws ample number of opportunities for the car wash brands. “Not just metros or tier- I cities but smaller cities are also coming forward as a huge market for the sector as individuals disposable income is rising,” Brijesh says further.

Franchise expansion   

A look at past few years shows rising number of specialised car wash brands coming in and franchising to spread their operations pan-India. Franchisors have unique technology and professional service which they offer to the customers but by passing it on to the franchisees, they are able to easily spread their operations pan-India. Different cities are seeing more and more number of franchise car wash outlets coming up as need for such players is growing immensely in the market. Exppress Car Wash, Autozspa, Carzspa, Speed Car Wash, Auto Maxx, and The Car Laundry are some of the franchise brands in this category. They have varied franchise business models for franchisees and looking for franchise partners aggressively.

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