Spinning the Franchising Wheel

From Ambassador and Maruti to Jaguars and Bentleys, the Automobile Industry has come a long way discovering the monumental changes in the process.

By Feature Writer
Spinning the Franchising Wheel

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- clocking a CAGR of 15 percent.

The global automotive industry is seeing changes in a host of areas right from vehicle design and distribution to after-market sales and service. From Ambassadors and Maruti to Jaguars and Bentleys, we have come a long way discovering the monumental changes in the process.

If you have a genuine passion for working with cars, you can turn your hobby into a career by opening an automotive franchise. Starting your own automotive business can be costly and confusing, but franchising allows you to receive assistance for starting and running your business. A well-known franchise with a strong brand name can also help you land customers from the get-go.

Driving factors:

To fulfill the gap in the market and to cater the customer in every nook and corner of the nation various brands have opted for the franchise route bringing a new business opportunity for aspirants. Some of the major growth factors are:

Easy finance

Nowadays, purchasing a car is a painless task due to the easy availability of car loans and it has become a major growth driver for the emergence of the car service sector.


People invest their hard earned money in cars and therefore require quality maintenance as well. This can only be provided by branded service centres.


Masses today are totally dependent on a car for travelling frequently. Hence, the cars require a regular maintenance drive.

Special equipments

Expensive cars require special equipments which may not be available with local car centres. Though there is a large unorganised market for servicing, the more complicated cars of today cannot be dealt by these small shops. Training, parts, and equipment is needed, which we can deliver at a cheaper cost than the authorised service centres. Therefore these outlets have as a unique proposition - multi-brand and a one-stop-shop for many of the auto needs of the customers.

The industry has been evolving over the years, meeting up with challenges as diverse as transitions, consolidations and restructuring, and thereby adapting to the new market conditions.

The Ace Players

Companies such as Popular Car World, Mahindra First Choice, Everbright Enterprises are focusing on the franchise route to spread across the country.

Car players in the industry are taking up franchise route for expansion. Franchising is the best way forward to expand the market opportunity to every nook and cranny of the nation. As Yatin Chadha, VP ( Franchise Business ), Mahindra First Choice shares: “The nature of the business is such that it is entrepreneurial and requires local knowledge which needs to be coupled with the strong set of processes that are required to conduct this business on a day to day basis. This made franchising a very attractive choice for growing the business.”

Presenting a very attractive franchising model, which gives attractive ROI to the franchisee, many will be more than happy to participate and become stakeholders in the automobile industry which will also help to grow the market penetration at the same time.

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