There has been an annual production of automobiles of 22.65 million vehicles in the financial year 2021 and around 13 million vehicles were produced between April- October 2021. There has been an upsurge in the automobile industry due advancements in technology and because of which there has been an increase in new business establishments in the automotive sector. Beginning an automotive business needs the guidance of various automotive consultants because they will help you in identifying the correct customer segments, deciphering needs and preferences and assessing the market trends and risks wisely.
Automotive industry is one of those businesses that have immense potential to grow and give employment opportunities to a large populace. Making an advent in the automotive industry could be a great start for your entrepreneurial journey.
Types of vehicles in Automotive Industry
There are different set of vehicles which are part of the automotive industry. Th e list is as follows:
1. Two Wheelers
The production of the two wheelers started during the 1950’s when the Automobile Products of India started the production of scooters subsequently starting the manufacturing of motorcycles as well. The motorcycles, scooters and mopeds are expected to increase with a CAGR of 3.7% and 63 million units. With the manufacturing of motorcycles like Enfield etc., the market segment of two wheelers enlarged and the two wheelers got established in the market of automotive.
2. Passenger vehicles
The passenger cars amd vehicles market is estimated at $32.70 billion in 2021 and is expected to grow at a CAGR of 9% and reach at a value of $54.84 billion till 2027 being 2022-2027 the forecast period. Though the pandemic has reduced the production of such vehicles still there has been a steady increase in the manufacturing and production of passenger vehicles. The Indian automotive sector has paced its growth from the components manufacturing to assembling to complete manufacturing of the cars and has tremendous potential if you’re planning to establish a business in this segment of the automotive sector.
3. Commercial vehicles
It generally refers to any kind of vehicle which is used for various types of industrial vehicles used for either commercial or construction and agricultural purposes like earth movers etc. Despite facing multiple setbacks and challenges due to the pandemic, still the commercial vehicles managed to perform much better and has an estimated growth of over 46% in FY21. Though the growth of heavy commercial vehicles such as buses continue to be restricted due to the after effects of the Covid-19.
4. Electric Cars
These are those types of vehicles which use electrical energy stored in rechargeable batteries. This category includes all types of automobiles propelled by a single or several motors. One report by India Energy storage alliance projects estimated that the EV market will grow at a CAGR of 36% till 2026. This means there will be upsurge in the EV’s in near future which will lead to growth in the automotive sector.
Starting a business in Automotive sector
1. Business plan
To start any kind of business, there is need of a well planned blueprint to execute your efforts and ideas correctly. Without a proper guidance and research, a business plan is incomplete and might not give the desired results. Automotive consultants help a new business to have well researched strategies which not only have a good understanding of consumer trends but also reduces any kind of roadblocks which a business may face at the initial stage of setting up a business.
Achieving the goal with which this business is established and working towards its growth is the main motive of having a business plan. Customer needs is the most important point which should be taken care of by a budding entrepreneur because that is the only key to have a successful business in any kind of business setup.
2. Business model
In the business of automotive or setting up a car accessories business, one should have a very clear perspective as to what and how they are going to execute the plan i.e., the business model on which they will be moving forward. Having an appropriate business model is necessary especially when you’re setting up the base of your business to cater needs of many, the consumer base. Working on business model requires accuracy and preciseness which may not be achievable at the first pace if guidance of automotive consultants aren’t taken care of and use of resources is not effective and efficient to its optimal level.
3. Industry Knowledge
Without proper knowledge of the automotive industry, one cannot run a successful business in this sector. The fact is obvious that without having correctly analyzed information and market trends or consumer demands, merely establishing of a business isn’t sufficient, one needs to have appropriate knowledge of the field along with with automotive consulting services as an expert assistance to the business and its initial stages.
Business in automotive spare parts or any kind of industry being established requires high amount of capital investment and using the resources wisely is of utmost importance when there’s requirement of various types of equipment’s and machinery to be used. Taking care of financial needs, requires assistance and well planned blueprint for the division of funds which is typically taken care by automotive industry consultants because they’re having expertise and market situation and in accordance to which they will be guiding you in running your business in various segments of the automotive sector.
5. Registration of business
Registering a business according to legal terms and conditions is required under Indian laws to run a business lawfully. Obtaining a license is the first and the foremost step in the registration process of either spare parts business or car accessories business in the automotive industry. The business also needs to get registered under “The shops and establishments Act.” The main motive to get necessarily registered in this act is that it generally regulates the payment of wages, hours of work, terms of services, leave policy, work conditions and so on.
6. Requirement of human resource
A business is effectively and efficiently operated only when there’s an appropriate use of skilled labor and the people are hired accordingly. Without the skilled human resource, there are chances that there won’t be maximum utilization of any kind of assets on which there has been an heavy investment i.e., machinery and equipment’s. One cannot simply hire people with less experience over this field because it leads to increase in costs in trainings and management, which is negating the usefulness of funds or resources. Taking help from the automotive consultants proves to be a beneficial aspect as they’re having an expertise in managing funds and finance related stuff and would guide you to strive for better business opportunities.
Assistance by SolutionBuggy in Automotive sector
With completing more than 500 projects with expert guidance of over 2000 automotive industry consultants, SolutionBuggy serves you as a platform which will help you at every stage of your business right from executing the business plan till management of resources and removing the roadblocks at the initial stage so that you can operate the business effectively. With over 15 years of experience, our automotive consultants are here with you to overcome every kind of challenges faced by people with regard to either finance management or understanding the consumer and market trends.
What actually SolutionBuggy assists you in?
- Market research is done with all aspects precisely managed. Automotive consultants will help you to understand the risks existing in the market and guide you in dealing with those efficiently.
- Detailed Project report will be provided wherein you’ll be able assess the every factor aptly and will be getting prior knowledge to your shortcomings which could be improved in advance and reduce chances of possible roadblocks.
- Assistance in plant setup would be done when you register with our platform. Our automotive industry consultants will help you properly analyze everything and make it easier for you to neglect the hindrances related to plant and machinery setup.
- Funding which is the basic requirement to setup a business in such a sector which requires heavy capital investment, SolutionBuggy will assist you to get proper funds with the initiation of business with proper legal formalities.
Automotive Industry Consultants
- Automotive sector is one such arena of the market segment which requires adoption of up to date technology. One may not be be able to keep pace with the current market trends, when you aren’t having proper guidance of automotive experts as they have appropriate market knowledge which can minimalize inconsistencies and help you with increased productivity. Automotive industry consultants will aptly make technological adoption up to current market trends which will ease your operation of business.
- Licenses and certifications will be easily available with proper legalities without making it hectic for you.
- Packaging and distribution is part of marketing activities which is taken care of once you establish business in your choice of domain. The responsibility lies with us and the automotive consultants to apply correct strategic techniques in order to conduct smooth packaging and distribution without any barriers.
Our automotive industry consultants will not only guide you but also help you to explore new opportunities in the sector.