13.2 C
Thursday, July 18, 2024
HomeBusiness TipsLearn About Opening an Automobile Repair Shop in India

Learn About Opening an Automobile Repair Shop in India

Related stories

Unlocking the Power: Embracing the Benefits of Tax-Free Investing

  Unlocking the Power: Embracing the Benefits of Tax-Free Investing For...

Income Splitting in Canada for 2023

  Income Splitting in Canada for 2023 The federal government’s expanded...

Can I Deduct Home Office Expenses on my Tax Return 2023?

Can I Deduct Home Office Expenses on my Tax...

Canadian Tax – Personal Tax Deadline 2022

  Canadian Tax – Personal Tax Deadline 2022 Resources and Tools...

RRSP Deadline 2022 & Contributions

RRSP Deadline 2022 & Contributions Many Canadians may have challenges...

Starting a car repair shop is quite a good idea. In this ever-evolving world, everyone has a vehicle to run. An automobile is an expensive part of life, and no one changes it very frequently. In comparison, they choose to repair it. When it comes to setting up an automobile repair shop, several conditions must be kept in mind before proceeding further. Establishing a car repair shop requires proper planning, which includes decisions like location, service availability, competitor’s study, targeting the customer, and the cost of the overall setup. The layout and design of the auto repair shop are some of the basic considerations to attract customers towards it.

Did you know?

With India’s growing economy, the purchase of vehicles has taken a great pace. By the end of December 2019, India had a high rate of registered vehicles, up to 83 million, which is assumed to grow up to 1.5 billion by 2030. With these high charting numbers, the automobile workshop business is an excellent venture to start with.

Automobile Workshop Business Plan

To start an automobile repair store, It is required to plan the business first. Some basic terms in business planning you need to follow are:

  • Service Availability: The first thing that needs to be considered is the number of services that will be available in the shop. Setting up the theme of the car repair shop is necessary, whether it is a specialist shop where everything is available or a general maintenance shop. List out the services along with the adequate charges according to current market rates.
  • Location: The location of the shop is one of the basic things you need to consider. It should be located in a populated area to acquire a large number of customers. The basic considerations you need to keep in mind before deciding the location of the repair shop include high target customers, easy accessibility, convenient visibility, and cost effectiveness.
  • Overall Cost: It is a basic requirement to estimate the car garage setup cost in order to arrange the necessary funds. The whole setup includes the price of required land, getting the equipment, acquiring the certifications and registrations, the construction, the insurance, the rent, etc.
  • Funding Resource: Once the estimation step is completed, the second step that follows is finding a resource for the funding. Most basic option for funding is considered to be bank loans.
  • Competitor’s Study: Studying the competition in your planned business venture is necessary before stepping into it. The decision of the location and overall services provided will depend upon the knowledge you have about your competitor’s. Having the basic knowledge of the competitor will help in establishing the car repair shop effectively in order to get a high number of customers.

Also Read: How to Start A Car Dealership Business in India in Easy Steps?

Required Equipment

As you are working with automobiles,  you need to open several crucial parts, repair, clean, and provide several other services. In order to fulfil the requirements and desires of every customer, it is essential to have a set of tools and equipment ready for the service, and this equipment takes out most of the investment amount. Some of the basic equipment required at an auto repair shop are:

  • A heavy air compressor.
  • Wrenches, belt, shaft, gear, and several handy tools.
  • A storage bucket for holding the coolant or collecting the oil.
  • Chargers for charging the battery of the vehicles.
  • Engine hoist, which plays an important role in servicing the engines of the automobiles.
  • A well-furnished working bay where the servicing of the cars will be performed.
  • A brake lathe machine is quite essential for every automobile repair shop.
  • Floor Jack and Jack stand so as to lift up the car.

Layout of the Automobile Shop

The auto repair shop must be laid out in an attractive manner so as to provide a convenient workspace for the employees and an aesthetic look to attract the customers. Moreover, the layout of the automobile shop must be figured out in such a way to handle all the machinery easily. The location of the working Bay must be laid out efficiently so as to provide an easy entrance and departure of the automobiles without any hassle, along with which it provides a convenient space for the employees to work and repair the incoming vehicles. There are several things that need to be considered while laying out the design of an automobile shop:

  • Engaging waiting area: Every auto repair shop must have an engaging waiting area for the customers. To make the environment of these repair shops more comfortable, you should have a coffee vending machine or a TV.
  • Cleanliness: The automobile shop must be clean to give a professional look to the place. It is quite necessary to provide a clean office area and a well-organised working area to attract the customers.
  • Service efficiency: One essential thing that needs to be considered while establishing an automobile shop is service efficiency. There should be proper and standard service availability and transparency in the overall dealing.

Legal Aspects Involved in Automobile Shop Business

After planning the whole setup and the layout of the shop, it is quite necessary to look into the legal aspects of the business as well. This is necessary for the smooth running of the business. Some of the legal considerations you need to keep in mind are:

  • Ensuring that you are getting proper legal advice: It is required to have legal advice before setting up an auto repair shop because several legal aspects need to be considered such as the business licence, liability insurance, tax reporting, etc. Having a strong knowledge of these legal aspects is quite necessary for the smooth running of the business.
  • Acquiring a certification: The automobile shop must have a designation, i.e., it must acquire a certification to prove whether it is a sole proprietorship or in collaboration with a corporation. The shops with this certification is a clear sign that the employees have work experience and are professional in their work, which plays an important role in attracting many customers.
  • Business insurance: Every business has some risk involved with it. That is the reason why it is quite necessary to have business insurance. Before considering the establishment of an auto repair shop, it is required to protect it from several accidents, natural hazards, or any other manual disruptions. Therefore, having insurance over the shop is quite necessary before establishing the infrastructure.

Also Read: Fundamentals of Starting an Automotive Parts and Accessories Store

Final Step in the Procedure

Well, after getting the hands over the business plan as well as the legal documentation of the shop, it is now required to gather a great team. The shop will be known for the service it provides; therefore, having a great team is essential.

  • Hiring employees: The most skilled and experienced employees must be hired in order to run your shop efficiently. Every auto repair shop focuses on having a large team of employees, but having skilled people is an advantage to attract a large number of customers. Therefore, the hiring of an employee must be done in a precise manner. They must be hired on the basis of their experience of work and their skill.
  • Promotion: Once everything is set up and the auto garage is good to go, the last step that comes in the procedure is promotion or marketing. Marketing is one of the major aspects which could bring advantage to the shop at once. The basic point to attract the customer’s is to organise shop rates and charges reasonably compared to other auto repair shops in that vicinity.  


In this modern era where automobiles are available in abundance, the establishment of an auto repair shop is quite a great idea. However, several business plans and layouts need to be considered before setting up an automobile shop. One of the basic requirements which come in the way of creating a perfect business plan is the decision of location, estimation of overall cost, and funding resources. It is quite necessary to get the shop certified, along with which insurance is required to protect it from any natural and accidental hazards. You must put a significant consideration over the designing of the automobile, i.e., cleanliness, convenient working area, engaging waiting area, etc, to attract the customers. It is required to have a basic knowledge about the types of licences and the procedure to acquire the licence and get the shop registered and certified.

Follow Legal Tree for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.


Q: What must be the layout plan of an auto repair shop?

Ans:The layout plan of an auto repair shop basically depends upon the comfort of the customer. It is suggested to have a coffee vending machine or a TV in the waiting area for the customers as well as it should be clean.

Q: What is the equipment required in an automobile repair shop?

Ans:Equipment that is required in an auto repair shop depends upon the variety of the car that is being repaired in that particular shop. Most of the important and common types of equipment that are available in a car repair shop are a working bay, floor Jack and Jack stand, a broken lathe, chargers, storage buckets for oiling in coolant, etc.

Q: What are the legal documents required for a car repair shop?

Ans: A car repair shop requires various legal aspects to be considered before establishing it. There can be accidental and natural hazards that could put the shop at risk, for which insurance is quite necessary. Along with it, the shop must be certified so as to enhance its reputation.

Q: What is the basic business plan for an automobile repair shop?

Ans:The basic business plan of an auto repair workshop is to consider the location of setting up the shop as well as the service that will be available in the shop. Moreover, the planning of the overall cost estimation, along with the funding resource, must be considered.


- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories