How to Start an Automotive Franchise in India: Step-by-Step Guide

The automotive industry in India is booming, with rising vehicle ownership across both urban and rural areas. With this growth, the demand for reliable car services, repairs, detailing, accessories, spare parts, and even EV solutions has surged. Starting an automotive franchise is one of the most promising business opportunities for aspiring entrepreneurs in 2025.
Whether you're interested in running a car service center, tyre shop, EV charging station, or automobile spare parts outlet, franchising offers a low-risk, high-reward model with established brand support.
Here’s a step-by-step guide to help you launch your automotive franchise in India successfully.
Step 1: Understand the Automotive Franchise Landscape
Before investing, it’s important to understand the various types of automotive franchises available in India:
Car/Bike Service & Repair Centers (e.g., Mahindra First Choice, GoMechanic)
Tyre and Battery Outlets (e.g., Bridgestone, Exide)
Automobile Accessories & Spare Parts (e.g., Bosch, Minda)
Car Wash & Detailing Services (e.g., 3M Car Care)
EV Charging Stations (e.g., Tata Power EZ Charge, ChargeZone)
Two-Wheeler and Four-Wheeler Dealerships
Choose a category that aligns with your budget, location, and interest.
Step 2: Research and Choose the Right Franchise Brand
Evaluate franchise brands based on:
Brand reputation and customer trust
Initial investment & ROI timeframe
Number of existing outlets
Training & operational support
Marketing and advertising assistance
Use platforms like Franchise Discovery, Franchise India, or official brand websites to compare opportunities. Check reviews and connect with existing franchisees if possible.
Step 3: Evaluate Investment and Space Requirements
Each automotive franchise will have different requirements. Typical investment ranges:
Basic Car Wash/Service Franchise: ₹5–15 lakhs
Full-Service Auto Workshop: ₹20–40 lakhs
EV Charging Station: ₹10–25 lakhs
Spare Parts/Retail Franchise: ₹8–20 lakhs
Also consider the space requirement (usually 500–2,000 sq. ft depending on the service type) and whether the location is in a high-traffic or industrial area.
Step 4: Register Your Business & Complete Legal Formalities
To legally operate an automotive franchise in India, you’ll need:
GST registration
Trade license from your local municipal corporation
Shops and Establishment Act registration
Agreement with franchisor
Pollution control certificate (for workshops)
FSSAI license (if the business involves a customer café or waiting area with food)
Your franchisor will often assist you with most compliance and documentation needs.
Step 5: Set Up Your Outlet
Once approved, the franchisor typically helps in:
Outlet design and layout
Supply of equipment and spare parts
Installation of machinery/tools
Recruitment and training of staff
Software or POS setup for inventory and billing
Ensure all branding and signage match the franchisor’s standards for uniform customer experience.
Step 6: Staff Training and Launch Support
Most top franchisors provide hands-on staff training and a soft launch phase to help you build confidence. This includes:
Technical training for mechanics/technicians
Customer service and CRM guidance
Sales strategy and upselling techniques
Digital marketing setup (Google My Business, local ads, etc.)
Step 7: Market Your Franchise Locally
To attract customers from Day 1, use a mix of:
Local newspaper ads & flyers
Google & Facebook ads
Referral programs or discounts for first-time customers
Partnerships with local cab aggregators or fleet operators
Your franchisor might also promote you through their national campaigns or app-based bookings.
Step 8: Monitor Performance and Ensure Quality
Regularly track metrics like:
Daily service volume
Customer feedback and reviews
Inventory and spare parts availability
Monthly revenue and profitability
Ensure high service quality and cleanliness to retain customers and grow through word-of-mouth.
Conclusion: A Profitable Road Ahead
The automotive franchise industry in India is evolving rapidly with tech integration, growing EV adoption, and increasing vehicle penetration in Tier 2 and 3 cities. With the right brand, training, and customer service approach, you can build a successful business with long-term profitability and scalability.
Starting your own automotive franchise is not just a business opportunity—it’s a way to become part of India’s growing mobility ecosystem.
Subscribe to my newsletter
Read articles from Diksha Sabharwal directly inside your inbox. Subscribe to the newsletter, and don't miss out.
Written by
