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Everything to Know About Buying a Car Service Franchise with All the Essential Franchise Facts

Although every car manufacturing company comes with a warranty period of at least one year, the consumers prefer independent car servicing companies. Read on...

By Features Writer
Everything to Know About Buying a Car Service Franchise with All the Essential Franchise Facts

Those days are gone when people used to look for some small mechanic shops nearby the roads whenever their cars faced a breakdown. The car servicing industry has now become a glamorized market, which is expected to reach a spectacular mark of Rs 34,000 crores by the year 2020.

Each year, around 25, 00,000 new cars are sold in India. Although every car manufacturing company comes with a warranty period of at least one year, the consumers prefer independent car servicing companies. This is mostly because of the uprising prices of car services that the big automobile companies provide post warranty. This is how once an unorganised and undiscovered sector is heading towards becoming one of the most successful businesses in existence.

As the potential of this industry has been unraveled by some new passionate entrepreneurs, there has been an unstoppable demand of the service, hence captivating more enthusiasts towards it. Many brands who have achieved success in this field are inviting franchisees to join in and the market is expanding like never before.

Here is all that you need to know while buying a car servicing franchise.

Market Potential of Car Servicing Market

 The car servicing market comprises of three categories – organised single brand segment (catering to a particular brand of cars), organised multi-brand workshops (catering to multiple brands) and vast network of unorganised multi brand (local garages). In the initial stage of organised market, the major chunk of the revenue went to the unorganised multi-brand garages. But as time passed and many more players plunged into the organised multi brand workshops, the segment started to bloom. The post warranty vehicle service market now mainly belongs to the organised multi-brand service centres.

While talking about franchise opportunities in the industry, there are so many newly emerging brands that are pushing the industry forward. For example, Carz is a brand that offers franchising at a very minimal investment cost. Investing in such affordable ventures could be an effective way of entering the market. Here are few of the franchising facts that could be taken into consideration while thinking of buying a franchise.

Total Investment Cost: According to one of the leading car servicing brands in India, the total project cost of a car servicing franchise could make it around INR 30-35 lacs excluding the real-estate and working capital. Some of the brands also provide finance to first time franchisees. Some brands also provide inventory from their own approved vendors so that it becomes less intimidating for the first timers.

Expected Breakeven and ROI: As the industry is blooming with such a rapid pace, an expected breakeven of a well-known franchise brand could be 3-4 months. One could expect an ROI after 30-36 months from starting the franchise.

Training Period:  Mostly the franchisors provide one month training to the franchisees that are first-timers.

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