Personalising cars accordingly is now among the newest fashion and trend within the automotive industry.
Car accessories have always managed to attract car lovers from all across the world. In fact, it has been an add-on sector for various automobile firms, which brings them a good amount of revenue by simultaneously catering to the automobile industry.
But, the scenario today is altogether different. Car enthusiasts along with most car owners like to take care of their investment through personalising their cars, which has eventually made the industry grow bigger and better with each passing day.
Thus, if you are equipped with basic entrepreneurial skills, establishing a car accessory business might be a great option.
Car Accessory: A Profitable Business Option
Personalising cars according to ones' tastes and personality is now among the latest fashion and trend within the automotive industry. Car owners are willingly investing in add-on accessories for their cars that are eventually booming the car accessories’ segment in India.
You can enhance both the interior and exterior of cars, trucks, and other vehicles through different accessories like neon lights, body kits, rims, car alarms, and stereo systems. Since the list is a never-ending one, you need to decide the different accessories that you will be dealing with through your business. But, be sure that neither of these accessories are against the law.
What makes it a Lucrative and Profitable Business Option
Buying accessories is a much more affordable way of doing up your car, compared to full customisation. A lot of customisation options are now available – namely coating, seat covers, stereo sets, flashy and neon themed lights and so on.
These customisations are available in all sort of price range, suiting every car owner’s requirement. For example, one could invest in a car’s stereo system that might cost you around INR 2500 – 5000. Whereas, seat covers are of different qualities. The cheapest seat covers can cost you around INR 1500 – 2000 that later exceeds depending upon the quality of the product.
The Rise in Disposable Income is Booming the Car Accessories’ Sector
Every car owner’s hobby is to make his/her vehicle according to one’s mood and demand. But the limited income in the past somewhere or the other emerged as a barrier, which eventually caused this hobby to fade away with time.
But now, the rise in disposable incomes and greater exposure to international auto styling has contributed to the rapid growth of the car accessory industry in India. From air-conditioners to automatic transition, car owners are investing in several different car accessories, which they find are best suited for their vehicle.
The segment has managed to emerge out of its initial phase and is all set to become a major segment in the Indian business industry. According to the Economic Times, the accessories customisation is believed to be around 2% at the entry level. It basically related to the car audio systems which almost 80-85% of car buyers opt for it. Rising firms in this segment could target adventurous customers who are ever-ready to play with both the interior and the external look of their cars.
Some Existing Car Accessory Firms and their Business Model
Realising the potential lying in the Indian automotive accessory industry, entrepreneurs have started penetrating the industry with new and innovative ideas along with some existing firms. Brands like Cherry International, Cogelsa, YSR-Bearing, and others are some relevant examples of automotive accessory firms that are currently dominating the Indian automotive industry.
Entrepreneurs could get associated with several existing brands that are operating in the Indian automotive industry. For example, Cherry International’s franchise is available at an investment around INR 30-50 lakhs along with an area ranging between 500-700 sq. ft.
Another great option for budding entrepreneurs is the brand YSR-Bearing whose franchise is available at a cost of around INR 25-50 lakhs. The area required to get associated with YSR ranges between 500-1300 sq. ft.
These brands have a wide range of accessory services that could attract any car owner. From coating to assembling tech-related accessories, these brands are installing such accessories since long, satisfying their customers by offering luxurious look for their cars at a reasonable price.