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What Is The Scope And Limitations Of Auto Parts Business? < Auto Business Information By

With rapid industrialization and modernization through out the country has resulted in an increased demand of vehicles such as cars and motorcycle. This has further led to the increased demand of auto parts. Every vehicle will undergo some wear and tear, or some minor and major accidents because of the increasing traffic. Due to which the demand of auto parts has gone high. Besides this every car, motorcycle and other vehicle manufacturer requires auto parts which they can not manufacture themselves.

What are auto parts?

Auto parts refer to body components of any vehicle. Some examples of auto parts are type, wheel covers, tube, wheel, axel, windows etc. The product range of auto part is quite vast.

What is auto parts business?

Auto part business refers to selling of body components of any vehicle. With the increasing demand of vehicles like cars and motorcycle this business is at its peek. Auto parts business provides you with a brilliant investment opportunity. At any given day a vehicle can break down or it parts can malfunction. It would require some auto parts to fix the vehicle.

Auto parts business can be classified into various categories:

Auto parts manufacturers

These are big companies which manufacture auto parts. Even the vehicle manufacturer company can have separate auto parts manufacturing division. Some companies only deals in the manufacturing of specific auto parts. Auto parts manufacturer are mainly of B2B nature i.e. they deal directly with other business organization. Some auto parts manufacturers provide their services to vehicle manufacturing companies. For example a tire manufacturing company provides its services to car or motorcycle manufacturer’s or an engine manufacturer provides their services to other car manufacturing company, a live example of this is, Fiat designed engine being used in Maruti Suzuki car. Auto part manufacturing requires a huge amount of investment and they need to follow some strict guidelines prescribed as a standard by the government.

It is impossible for a vehicle manufacturing company to manufacture all its parts also; this gives an opportunity to other business organizations. For example a vehicle manufacturing company never manufactures tires or products like lights, seat covers, fog lams, wipers etc.

Auto parts wholesalers or commission agents

The auto parts wholesaler’s acts as a commission agent. They buy auto parts from the manufacturers and sell them to small retailers or to auto repair workshops. They act as a broker between the manufacturers and the small repair workshops. It is not possible for car or motorcycle repair workshop owners to deal directly with the auto parts manufacturers as auto part manufacturers always sell a bulk quantity which require huge amount of investment which is not possible or repair shops owners. This is where auto parts wholesalers come into action. It gives an opportunity to people who have sufficient funds to invest. As demand of vehicles like cars and motorcycle are increasing day by day the requirement of auto parts are also increasing proportionally.

Company Workshops or company owned garages

These are the vehicle manufacturing company owned workshops which carry out repair work for company specific vehicles only. They only buy auto parts which are manufactured for their company’s product only. They have standard rates for auto parts though out their chain of workshops. For example a fiat owned workshop will carry out repair work of fiat manufactured cars only and will only purchase auto parts which are manufactured for fiat manufactured cars only. You can invest on company owned car or motorcycle workshop it does not require huge investment. Companies generally provide franchise of their workshop to interested parties to provide better services of their vehicle.

Auto parts workshops

These are the small car or motorcycle repair workshop owners. They basically deal with the repair work of cars, motorcycle, vans, trucks and other vehicles. They are the ones who interact directly with the customers who require auto parts for their cars, motorcycles etc. Taking your car or motorcycle for servicing at an independent auto repair shop will be infinitely more convenient than driving to the company outlet as Independent garages are always an affordable option than dealership garages. It does not require much investment to open a small auto parts workshop.


Auto parts business has a huge scope you can chose any category that suits your investment power. With new cars, motorcycles and other vehicles being launched every day it is increasing the prospects of auto parts market to grow at a rapid speed.

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