The auto spare parts market in India is on a rise. With the increased rate of vehicles being sold in the market, obviously the need of spare parts has also increased and this has created a huge opportunity in the market.
Many independent auto spare parts dealers like the Valeo group have sprung up due to the scope of growth in the market. The motor vehicle market in India is at an all-time high and it does not seem to lower at any point in the near future. A motor vehicle on an Indian road has an average shelf life of about one and a half years. Obviously, after that it will need spare parts to be repaired as in India no one sells a car in that less time. Suppose a person has bought a motor vehicle of Mahindra and Mahindra company. After the certain shelf period the vehicle will require Mahindra and Mahindra spares. The person may go to an independent repair shop rather than an official outlet as it will be cheaper. Now, the independent repair shop will require Mahindra and Mahindra spare to repair the vehicle. He may contact an independent dealer rather than going to the company dealer. And herein there is the advantage of the independent spare parts dealer in India. The chain of seller to the consumer is such that the independent dealer stands to gain profit.
Valeo group is an example of an independent auto spare parts dealer. It is a huge group and is situated in many countries where it provides full services to all motor vehicles. The products of Valeo group such as Valeo starters are nowadays very popular in the market. The Valeo starters are eco -friendly car parts which ensure that if a car is idle for some time, it turns off. In this way the Valeo starters ensure that less pollution is spread through a car.
As we can see from the over- all scenarios, opening an auto spare parts business in India is an extremely profitable business. Following things should be kept in mind while starting an auto spare parts business.
- A steady customer base should be built before the business is open, so that there will be a steady revenue flow as soon as the business is open. Otherwise, it may take some time to build a customer base and that may lead to frustration.
- At starting, the customer base built should be provided with parts at lower price. This will ensure that the customers stay loyal to you as they will a bit grateful.
- The independent repair shops should be targeted as potential customers as they will order spare parts in mass. A wholesale operation should be set up to provide these outlets with the spare parts.
- A website of your business should be opened, so that customers find it easy to see what parts are available at your outlet. Also, the website will bring in more customers.
- A range of delivery options should be provided to the customers.
