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How to start a Budget Auto Service Station Business in India?

Auto Service Station Business

Starting a budget auto service station business in India can deliver high amount of profit for sure. Most of the mechanics are using their skills while working for others. But this time you can start your own auto service station business and can earn money in India. This type of service station can be started both at the urban as well as sub-urban areas. You can also assign the spare parts stock for the auto service station in order to keep the customers intact. As per a recent report, it was announced that India will become the 3rd biggest auto manufacturer till 2020. This country is also going to reach the milestone of producing seven million vehicles by 2020. This sort of increase in the selling and buying of the vehicles is what creating a good business opportunity for those who wish to start a budget auto service station business in India. Since the potential is so good, it is a very good niche to start business in. There are lots of people who are not sure about which business to start and this should be a good step to decide on.

auto repair shop

As per another report auto dealers in India are now looking for tax sops in the Union Budget. The report also suggests that a segment of the automotive business has invested Rs 45, 000 crore. And this is what also allowing more than 7, 00,000 people to get direct employment. All these reports can really generate a true interest among those who wish to start a budget auto service station in the urban or sub-urban areas of India. The demand is very good and hence it is sure that the business is going to go up in long run.

Advantages and scopes of this business

Once of the most interesting aspects of this business is that you are not really required to have a retail shop at such a location where the traffic is high. So, there is also no need to assign higher price. You can easily set this business as a home based one or you can even select such a location to start this business which is close to a big city area. The basic criterion to start such business is that the place for your new budget auto service station should not be too far away from people who need it. The only thing matters is that your service stations needs to be accessed by people easily. Once your customers can access the place easily, your business will grow for sure. Hence keeping this in mind the potential for growth is very good and hence it is important that you should focus on starting one and it is expected to give you very good revenue.

What type of services you should include?

For a budget auto service station you can include different types of services:

  • Car wash
  • Electrical jobs like repairing horns, lights, etc
  • Mechanical jobs like repairing engine, accelerator, gear, shock absorber, etc
  • Maintenance or repair of the air conditioner of the cars and other vehicles
  • Alignment and wheel balancing
  • Oil change services such as gear oil, engine oil, steering oil, etc
  • Denting and painting like body repair works
  • Polishing the car body
  • Battery service

Planning and research

Just like any other business, before you start your budget auto service station, you need to perform a thorough research first. You need to have proper plan for the business that can be implemented to make it a big hit quickly. In this regard, the first thing that you need to do is to perform a thorough market research. You need to research about the automobile market in the locality where your next auto service station will be established. There might be a few auto service stations at that locality before. Try to find which services they are not offering. You should add that service to your service chart. Have a detailed plan for the service station. You need to decide the services that you want to provide to the customers. You also need to arrange the equipments that are needed.  This is very important for any business you start, and hence on the local level this should be done. Once the research is done in the right way this will be much simpler and it will push you in the right direction.

You also need to determine the man power that is essential for running an auto service station. Once you decide all these aspects, you need to estimate the start-up budget. For this budget, you can also add the cost for hiring man power as well as the money you will spend to stock some automobile parts at the service station. At the initial stage of your business, you can offer limited services and once the flow for business will be there you can start adding up more services for the customers. Once you keep on adding more service, the business is bound to go up and things will be much easier.

Equipment and human resources

In order to run a budget auto service station, you will need right kind of equipments and machineries. These are the most essential elements. You will also need the software to store and maintain the records. As far as manpower is concerned, you will need 2 different categories of manpower. You should have technically sound mechanics for the mechanical jobs and you will also need a few personnel to accomplish the official works.


Promoting and advertising your business is always important. So, you need to fix a budget for this as well. You need to advertise your business at the initial stage. For this you can take help of the local newspapers where you can post ads or you can go for the yellow pages. You can even post advertisements in the automobile magazines to promote your budget auto service station business.

Sadiq Iqbal

Sadiq Iqbal is the Lead Author, Editor and Head of Operations at Business Definer. Sadiq has a Masters in Business Management as well as years of experience, working in various business management roles at multiple organizations. Since joining Business Definer, Sadiq has helped numerous founders and business aspirants solve their most difficult problems and get their entrepreneurship dreams kickstarted.

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