In the world, India has the largest number of users of two-wheelers. This preference for two-wheelers is due to their affordability, easy maintenance, and the traffic conditions in the country.
Given the large number of two-wheelers in the country, there is a high demand for their spare parts. If you have an interest in the two-wheeler vehicle industry, starting a shop for two-wheeler spare parts can be a profitable venture that generates a good income.
How to start a bike or two-wheeler spare parts shop?
If you want to start a shop that sells spare parts for bikes and Two-wheeler, you need to know a lot about different models of bikes and Two-wheeler and their parts and accessories. It’s not a good idea to start the shop without this knowledge and rely only on workers because it can be very difficult to succeed. To learn more about the business, you can work in a similar shop for about a year.
Once you know enough about the business, you can start your own shop by making a plan. It’s a good idea to have a mechanic or a garage connected to your shop. You can either hire a mechanic to work at your shop or rent a garage to a mechanic.
Two-wheeler spare parts business plan:
The success of a business is heavily influenced by its location. If you plan on starting a two-wheeler spare parts business, it’s crucial to choose a location that’s in close proximity to a sufficient number of garages.
Two-wheeler spare parts business cost:
Starting a two-wheeler spare parts business typically requires an investment of 10 lakh rupees, which is sufficient for a single-brand spare parts shop. However, if you wish to establish a multi-brand spare parts shop (e.g. Hero, TVS,), you may need to invest up to 30 lakhs. The major costs involved are:
Shop area required: A commercial space of 500 square feet is sufficient for starting a two-wheeler spare parts shop. However, if you plan to store large fiber parts, you may need to consider acquiring additional space.
The rental cost of your shop may vary depending on its location and size. You should budget between 15 to 20 thousand rupees for monthly rent.
Inventory procurement cost: To obtain inventory for your business, you can source from local dealers or wholesalers. However, it’s important to exercise caution, as the market is saturated with counterfeit products. To ensure authenticity, only make purchases from authorized dealers. Initially, purchasing inventory on credit may not be possible.
You will need to buy on a cash-only basis. However, as your business grows and gains the trust of your suppliers, you may be eligible for a credit period of 15-20 days for future purchases.
Marketing and promotion expenses
Employee: The number of staff required to operate a two-wheeler shop may range from one to two, depending on the size of your establishment. However, if you plan on running a servicing/workshop alongside your shop, you will also need mechanics on staff.
When hiring staff, be mindful that salaries may vary based on experience. Typically, you can expect to pay anywhere from 12 to 18 thousand depending on the level of expertise.
Licensing and registration fees
Equipment and furniture cost
Profit margin in Two-wheeler spare parts business:
The two-wheeler spare parts business typically offers a profit margin of 20 to 25%. However, if you partner with garages, you may need to offer them discounts, which can lower your profit margin to 12 to 15%.
As with any business, the actual profit you earn depends on the volume of your purchases. Buying parts in bulk can help you secure better discounts from dealers and wholesalers.
It’s worth noting that branded items tend to offer smaller profit margins on sales, whereas domestic/local brands offer higher margins. However, selling branded accessories can help build customer trust and loyalty over time, making it a better long-term strategy.