What are the types of automobile businesses in India?
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How to start an Automobile Business in India?
- Plan and strategize: The first step towards opening a new business in the automobile industry is to strategize a business plan and streamline business ideas. Your business plan should be detailed, flexible, and future-proof. This will help you overcome any forthcoming challenges instantly with ease.
- Choose your industry: Choosing a field of operation for your business in the automobile industry is the next significant step in the path of establishing a new business in the automobile industry. From a wide range of options of business in the automobile industry, you may choose single or multiple options based on your knowledge, expertise, and experience in the field.
- Choose your location: Before you finalize the location for your business in the automobile industry, you must ensure that it offers proximity, accessibility, and affordability of supply chains, low property, and rental costs, low cost of transportation, high population of target buyers in the local market, a high scope of expansion of customer base and business operations, safety, security, and sanitation of the area.
- Choose your mode of operation: Business in the automobile in industry, both merchandise, and services, usually operate in the offline mode only. This mode of operation is not only preferred by buyers but is also the only option for sellers and service providers in some cases.
- Choose your name, logo, and brand: The name of your business in the automobile industry should be able to aptly communicate your field of business operations and your unique brand voice. For instance, the names Tata Motors or Hyundai Motor Company voice their brand names with “Motors” and “Motor Company” in the names indicating their field of operations.
- Get your funding, infrastructure, and logistics ready: Automobile businesses are capital intensive and need infrastructure, logistics, and heavy machinery to operate. This requires huge investments. Even services like cleaning, servicing, and repairing cannot operate without heavy machinery.
- Choose the legal status of your company: Most automobile companies operating in India have a Private Limited Company status. However, the earnings and revenues in the industry are so high that even large businesses have found it beneficial to form partnerships for several reasons like manufacturing new products, rebranding, etc.
- Get registered and incorporated: Once you decide the legal status of your business, you can begin the process of registering and incorporating it. SetIndiaBiz will provide you with the necessary guidance and professional services concerning the same.
- Get necessary licenses, certificates, approvals, and registrations to begin business operations: Once your automobile business is registered and incorporated, you need to get the necessary licenses and certificates like any other business.
- Get insurance: obtain important insurance covers for the safety of your business, property, product, and cover for the loss. Vehicle and commercial vehicle insurance are required for businesses like car rentals, delivery services, and passenger and freight transportation.
- Hire staff: Businesses in the automotive industry require highly skilled and experienced employees. This might raise the labor cost for your business but would enhance its productivity in the long run.
- Build a marketing team and channel: Online marketing has become a necessity for almost all kinds of businesses and products now. Additionally, many automotive businesses also publish their ads on print media like newspapers and magazines to promote their products. Broadcasting advertisements on television is also an effective way to market auto products and services.
- Build a customer grievance and feedback system: Customer feedback is an important input for your business as it consistently gives you insights into their needs and convenience. This will help you improve the quality and competitiveness of products and services without the need of conducting market research and analysis of the same.
- Organize a grand launching for your business- Invite potential customers, local industry leaders, competitors, suppliers, and other relevant guests to spread the word about your newly established business.