Automobile is one of the fastest franchise business sectors in India

Indian automobile manufacturers have achieved tremendous accolades in global auto industry over past one decade. Automobile franchise industry is contributing significantly in development of socio-economic condition as number of people gets employment. In addition, young generation of the nation show great in stylish two wheeler bikes and luxurious cars, at present technological advancements also a boon for the industry.

Franchise model & auto sector

Franchise system has touched all business sectors such as food & beverage, entertainment, retail, jewelry, etc. Demand for two, three, four wheeler and heavy vehicles is increasing exponentially, and also automotive service is expanding as maintenance of vehicles also necessary. Several companies put efforts to develop franchise system for purpose of selling automotive services. For example auto accessories, car washing, etc. are few of the latest automotive franchise business ideas. Massive business opportunities will be generated in coming years.

Favorable Factors

  1. Variation buying behavior: Global automobile industry has shown unprecedented growth due to consistent changes in customer behavior. For example, online and offline concepts used by modern day players is impacting customers’ psychology. Apart from this, digitalization and globalization are major factors which help Indian auto industry to make niche position in global marketplace.
  2. Innovations and technologies: Day-by-day competition is increasing, luxurious car manufacturers constantly use new technologies to manufacture smart vehicles, and for example gearless cars are available in market.
  3. Middle income: Early days only higher class people buy cars but as of 2017, middle families also show great interest. Increased income level could be a possible factor.
  4. Governmental policies: Indian government is always foreign as well as local auto manufacturing companies to develop effective manufacturing facilities. Start-up India and Make in India are two initiatives by government to encourage investors. In addition, 100% FDI (foreign direct investment) in some sectors also attracting global investors.

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