How to Start antomobile repair business? [A Complete Guide]

1. How to become successful in the auto repair business?

Are you interested in cars, and would you like to open your car repair shop one day? Having your vehicle and not having to repair it at some point is impossible. With more and more people buying luxury cars in India, the focus on repairs has shifted from cost to quality. Vehicles have become very technical, so most people take them to a garage for simple things like changing the oil.

So an auto repair shop is a lucrative idea. A garage is a workshop where mechanics and technicians repair modern vehicles. It’s a very disorganized sector but with good potential. Therefore, more and more entrepreneurs are getting into this business to provide customers with insured car repairs and services. You must invest time, cash, and effort to succeed like any other business.

2. How to start an auto repair shop?

Starting an auto repair shop should be on any list of top 10 small business ideas. However, it’s better to start small and slowly build traction as the company grows. Another reason is that equipment and tools are quite expensive, so it will take time to build your arsenal! Here we have outlined how you can start an auto repair business:

  1. Have a Business Plan – A clear business plan is necessary for your business to succeed. Create a business plan and define the scope of your activity. Determine how many clients you can manage in a day and how you can help them. You can start a dealership business from scratch or buy an existing business. Starting a business from scratch means buying all the tools and equipment. Franchising is another option. Although the initial fees are high, you get the benefit of marketing and a national brand.
  2. Location – Opening an auto repair shop in a strategic location that doesn’t have too many such services is a smart move. It should also be close to major roads and highways and central to your customer base. You can start your business from there if you have a garage or shed at home. Remember that there should be enough space in the workshop to accommodate all your future needs.
  3. Finance: To start this business, you need to make some investments or take out a loan. You’ll need some money to lease or rent your store space, buy equipment, decorate the space, and put up a sign. Your business plan will help you create a set of financial projections to help you secure investments or get a loan to start your business. Your business break-even analysis is based on average operating costs, including fixed costs such as utilities, rent, etc. and salaries. Managing cash flow can be a challenge for some auto repair shops. The minimum return must be 30 per cent per year. Car repair service cost is an important factor in determining the price of the services.
  4. Processing: Modern cars have many high-tech features such as lane-centric steering, adaptive cruise control and Bluetooth entertainment systems that require a lot of experience. You should hire highly qualified professional technicians who are trained to deal with any problems that arise on vehicles. Mechanics must be able to handle multiple types of car engines. Social skills and a caring personality are important in this job.

3. Type of Equipment You Need to Start an Auto Repair Shop?

It would help if you had the right tools and equipment to start when you care about your work. You can buy a lot of used gear where you can get a good deal.

  • Jacks and stands for lifting cars.
  • A high-performance air compressor for your garage.
  • Wrenches, belts, gears, shafts and other special tools.
  • Oil drain bucket for catching coolant or oil.
  • Battery charger and jump-up aid for jumping cars, especially when towed into your garage.
  • Engine jack for engine service.
  • Brake Blades – Buy a good brand because they will be your bread and butter.
  • A wall-mounted strut compressor allows you to perform suspension work on customer vehicles. Cars have to change their struts about every 100,000 km. This gadget will help you with that.
  • Work bays where you service cars.
  • A brake lathe.

All of these types of devices help keep your business running smoothly once you set it up.

4. Auto repair shop design and structure

When starting an auto repair business, you must carefully plan your workshop’s layout. Since you are using a free lift forklift, the ceiling must be at least 14 feet high. In addition, the driveway must be wide enough for customers to drive in their cars. Among the dissimilar areas, you will need a welcome hall for customers, a car elevator area, a workbench area, a warehouse for storing spare parts and tires, and an office.

The dealership needs to maintain a consistent and professional look to customers, maximize space, and enhance the customer experience. The waiting area should be nice since this is where customers sit while their cars are serviced. Make sure you have a TV and a coffee machine to keep them comfortable.

5. What are the most profitable auto repair shop ideas?

Your workshop can offer other value-added services such as collection and delivery, annual service, maintenance plans, roadside assistance, cashless inspection, insurance repair, etc. Other ancillary services may include installing custom alarm systems, window tinting and tinting, and vehicle beautification. Car accident repair is another niche and profitable field.

This requires you to have proprietary knowledge, high-tech tools and software. You can also stock genuine replacement parts, as original equipment manufacturer (OEM) parts are often hard to come by. You can also open a body and repair shop. This can repair damage to a car or SUV. This includes glass and windshield replacement, as well as paint.


Proper organization is key to avoiding wasting resources, human resources, and time at your dealership. Clever design and efficient use of space enhance aesthetics and make work faster. An efficient workshop must cover the daily needs of technicians and allow them to work comfortably and efficiently. It would help to create a catalogue of all your special tools, so you don’t leftover time observing them. Wall systems and storage cupboards can be used to store tools and keep the workspace tidy.

An organized auto repair shop ensures easy access to parts and tools, a logical workflow, and efficient use of space. Customer satisfaction should be your amount one goal. You need to work with the major insurance companies so that if a customer shows up with a damaged car, you can offer them a cashless repair. This will be a perfect customer experience.

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