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Top 15 Small Scale Automobile Business Ideas

The automobile industry in India has a strong prominence in the overall economy of the country. 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. In India, the small-scale automobile business is considered as a small business opportunity for rural, suburban, and metro cities.

Increasing vehicle population and increasing spending capacity are the two major reasons that have created automobile business opportunities for small entrepreneurs. Here in this article, we have compiled 15 chosen automobile business ideas in the manufacturing and retail industry. Check it out.

15 Profitable Automobile Business Ideas

Find below list of top automobile business ideas:

#1. 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.

The manufacturing demands major raw materials for the production of Automobile gaskets Gasket Sheets of various thicknesses. Read More…

#2. Automobile Leaf Springs

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.

#3. Brake Linings

Brake Linings are commonly known as brake shoes. This is an essential item in light and heavy commercial vehicles, passenger cars, scooters as friction materials for stopping, speed-reducing of 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 the major raw materials like cast iron components, asbestos, chemicals, resins, paste adhesive, and screws.

#4. 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. The manufacturing process is simple. Read More…

#5. Flywheel Ring Gears

Flywheel Ring Gear is one of the important components in a vehicle. These starter Ring Gears helps 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.

#6. 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

#7. 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.


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.

Related: Profitable Small Business Ideas For Small Towns

Find below Top Automobile Business Ideas In Retail Industry

#9. Auto Accessories Store

Auto accessories store in 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 to visit an auto accessories store. According to the local market demand, you must keep the right product range for your customers.

#10. 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.

#11. Battery Dealer

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.

#12. 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 the major profits from vehicle servicing, spare parts replacement, and accessories selling.

Related: Profitable Automobile Distribution Business Opportunities

#13. Spare Parts Shop

The spare parts industry has a huge potential in India. You must have the 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.

#14. Used Car Selling

Did you know the brand First Choice? This is a very popular used car selling the brand in India. You can start this business on your own or by having a franchise of a popular brand. You must have proper appraising knowledge. in this business, you can make the maximum profit on the purchasing of the old vehicles, not on selling.

#15. Washing Zone

This is one of the most profitable and lucrative automobile business for any individual. Apart from the retail space, you will need to invest in washing machinery, 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 basis focusing only on two-wheelers or four-wheelers. Otherwise, you can start a full-scale washing zone. Read More…

Like any business, starting an automobile business requires a lot of work but to be successful entrepreneurs you need to add even more qualities in your attitude. You will need to prepare for long hours, great sacrifices, new problems, and challenges every day with just having no end. Check if are really passionate about the industry. We hope, this list of 15 Small scale automobile business ideas will definitely help you in making an informed decision.