Want to start a business in the automotive industry with little money? And looking for profitable car-related business opportunities? If yes, you have landed at the right place. Here in this article, we are going to provide a list of the top profitable automobile business ideas that can be started with low to medium investment.
The automobile industry is undergoing a transformative phase with a shift towards electric mobility, autonomy, and innovative services. Increasing vehicle population and increasing spending capacity are the two major reasons that will propel the automobile industry in the future.
List of 27 Automobile Business Ideas
#1. Open an EV Charging Station
There has been a significant increase in electric vehicles (EVs) in the last few years. Hence, the demand for charging infrastructure is on the rise. Setting up EV charging stations presents a lucrative business opportunity for startups. According to BloombergNEF, the global EV market is expected to reach 30% market share by 2030, emphasizing the need for accessible and efficient charging solutions.
#2. Car Subscription Services
Car subscription services offer flexibility to consumers by allowing them to drive different vehicles based on their needs. This trend is gaining traction as more people prefer access over ownership. A report by Frost & Sullivan predicts that the car subscription market will grow at a CAGR of 71.6% from 2020 to 2025. The global car subscription market is projected to reach $12.6 billion by 2025.
#3. Car Detailing and Ceramic Coating
Car detailing and ceramic coating services cater to vehicle owners who seek premium aesthetics and protection for their vehicles. These services enhance the appearance and longevity of cars, making them popular among car enthusiasts. The global automotive appearance chemicals market is projected to grow at a CAGR of 5.4% from 2021 to 2028.
#4. Electric Vehicle Components Manufacturing
It is observed globally that the automobile is steadily shifting towards electric mobility. Hence there is a growing demand for electric vehicle components such as batteries, motors, and power electronics. The global electric vehicle market size is projected to reach 10.8 million units by 2026. You can establish a manufacturing unit for these components can tap into the expanding EV market.
#5. Automobile Gaskets
The function of a gasket is to seal the two faces of components to avoid leakage of fluid and air in the system in automobiles. Additionally, it is an essential item for other pneumatic and hydraulic systems.
However, the manufacturing of gaskets demands a wide range of raw materials. Check this guide to learn more about manufacturing automobile gaskets.
#6. Automobile Leaf Springs
An automobile leaf spring is one of the most important components in an automobile vehicle. Generally, springs hold the position between the road wheels and the body in an automobile.
When the wheel comes across a bump on the road it rises and deflects the spring, thereby storing energy therein. Apart from vehicle manufacturing, the product has a good demand in the spare parts industry.
#7. Start an Auto Blog
there are hundreds of bloggers making a good income running auto-related blogs. If you have a passion for the automotive industry and enjoy sharing your opinions and views, starting an auto blog can be highly profitable.
Selecting the right niche is critical to the success of any blogging business. Based on your knowledge select the one that fits you best. It can be vehicle reviews, industry news, or motor trends.
Read: How to Start a Blog and Make Money
#8. Brake Linings
Brake Linings are commonly known as brake shoes. This is an essential item in light and heavy commercial vehicles, passenger cars, and scooters as friction materials for stopping and speed-reducing the vehicle. These components constitute a very important part of the total braking system for these vehicles.
To start this business, you have to procure major raw materials like cast iron components, asbestos, chemicals, resins, paste adhesive, and screws.
#9. Online Car Marketplaces
There has been a steady rise in online platforms that connect buyers and sellers of new and used cars. The reason for this growth is primarily due to convenience and transparency in vehicle transactions. The digitization of car buying has led to the growth of online car marketplaces. Industry experts predict that the online car sales market is anticipated to reach $560.7 billion by 2027.
#10. Car Rental Aggregators
Car rental aggregators connect users with rental car providers. It offers a diverse fleet of vehicles for various purposes. The rise of travel and tourism fuels the demand for rental cars. The global car rental market is expected to reach $124.56 billion by 2027.
#11. EV Battery Recycling
As EV adoption increases, the need for sustainable battery disposal and recycling grows. You can launch an EV battery recycling business and make good money in the future. The global EV battery recycling market is projected to grow at a CAGR of 27.8% from 2021 to 2028.
#12. Clutch Plates
A clutch plate is the main component in the clutch mechanism of the automobile vehicle. The usage is increased due to the replacement of worn-out clutches frequently. Basically, these are the essential parts of the transmission system. The replacement market for clutch plates is projected to see substantial gains.
#13. Flywheel Ring Gears
Flywheel Ring Gear is one of the important components in a vehicle. These starter Ring Gears help to transmit power from the starter motor to the engine. Ring gears are normally press-fitted into the flywheel. The product has a good demand in the automobile manufacturing industry.
#14. King Pins & Shackle Pins
Generally, king Pins connect the piston with the connecting rod in an engine. These are used in automobile engines as well as stationary engines used for power generation or for lifting water when coupled with water pumps, while shackle pins are used to fit springs with the shackle brackets in an automobile. Both these items are replaceable components and are marketed as O.E components as well as spares
#15. Tie-Rod End Assembly And Gear Shafts
Tie-rod end assemblies and gear shafts are two important components in a vehicle. The steering system in a vehicle helps to turn left or right. Tie-rod forms the main component of the steering system.
Gear shafts help to keep the vehicle in motion at various speeds and loads. Apart from the manufacturing industry, the product has a good demand in the spare parts retail industry.
#16. Make U-Clamps
The U-Clamp comes in the shape of the U. Basically, it refers to a specific type of clamp. It is used to hold together the several layers of leaf springs of an automobile and hold them on the axle.
In every automobile, U-clamps help to hold the leaf springs together. Generally, 2 clamps in each set of leaf springs. You can initiate the manufacturing business on a small-scale basis. You can also produce some of the allied products from the same unit.
#17. Auto Accessories Store
Auto accessories store is one of the most profitable automobile business ideas in the retail segment. After every purchase of a vehicle regardless of two-wheeler or four-wheeler, owners usually visit an auto accessories store. According to the local market demand, you must keep the right product range for your customers.
#18. Sell Oil Lubricants
Along with fuel, every vehicle needs oil lubricants for smooth running. However, it is seen only petrol pumps sell lubricants in most places. And very few retail stores are seen selling oil lubricants. Hence, selling lubricant oil from a retail store can be a profitable automobile-related venture on a small scale.
#19. Automobile Workshop
The automobile workshop is a very profitable automobile business according to the gross margin. The opportunities are also huge. You can start with some specific services or with a full-fledged setup. For new entrepreneurs, it is advisable to start with a franchise.
#20. Buy an Automobile Franchise
if you are not interested in taking the hassles of starting an auto-related business from scratch, buying a reputed franchise business can be a good choice. There is a wide range of automobile franchises available at present. Select the one that fits your passion and budget.
#21. Battery Dealership
The battery is an essential item for every vehicle. And it needs regular checkups and replacement after a certain period of time. You can start this business with a dealership of a reputed battery manufacturing company like Exide, Amara Raja, etc.
#22. Battery Reconditioning
Another battery-related profitable venture is the business of re-conditioning of old batteries. The cost of a new battery is high. Hence, a lot of vehicle owners look for professional battery re-conditioning service providers to re-energize batteries. If you know the know-how of the trade, starting a battery-re-conditioning business can fetch high returns.
#23. Motorbike Dealership
Motorbike dealership is a very lucrative and self-rewarding business for any enthusiastic individual. Though the dealer commission is not very lucrative for the small dealer, the entire project is very profitable. You will earn major profits from vehicle servicing, spare parts replacement, and accessories selling.
Related: Profitable Automobile Distribution Business Opportunities
#24. Spare Parts Shop
The spare parts industry has huge potential in the coming days. You must have previous experience to start this business of your own. You can also start automobile spare parts retail business as an authorized spare parts dealer of a renowned vehicle manufacturing company.
#25. Used Car Selling
You can start this business on your own or by having a franchise of a popular brand. However, to be successful in the used car selling venture, one must have proper car appraising knowledge. Furthermore, the profit margin will depend on your ability to source good old cars at the cheapest price.
#26. Start a Car Wash Business
This is one of the most profitable and lucrative automobile businesses for any individual. Apart from the retail space, you will need to invest in washing machinery, a lifting bay, pneumatic tools, water resources, and manpower.
Different types of washing tools and equipment are available in the market nowadays. You can start a small-scale car wash business focusing only on two-wheelers or four-wheelers. Otherwise, you can start a full-scale washing zone.
#27. Start a Car Rental Business
If you are living in a city or a town, starting a car rental business can fetch good profit returns. One can start a car-renting business in two ways. One is starting from scratch on your own or attaching your vehicle with car aggregators like Uber or Ola.
Like any business, starting an automobile business requires a lot of work but to be a successful entrepreneur you need to add even more qualities to your attitude. You will need to prepare for long hours, great sacrifices, new problems, and challenges every day with just no end.
