The automotive industry is evolving almost every day, and Tyres are never replaced. Therefore, it is safe to assume that tyres are here to stay, and setting up a tyre showroom is one of the most profitable business opportunities. As the demand for cars increases, so does the need for Tyres, so you don’t have to worry about the decline of your Tyre business. The best thing about owning a Tyre business is that it owes you a lot of income if you open a showroom in a big city or small town. Now is the right time to start selling Tyres by opening this business, because according to automotive experts, the global Tyre market is expected to grow by 8-9% per year from 2018 to 2024.
Guide to Start Tyre Business in India 2024
Research the Market & Prepare a Business Plan – Before starting a Tyre Business, you must have enough knowledge about Tyres Industry. Let us tell you that tyres come in different shapes, sizes, and prices for different types of vehicles. In general, there are two large distinct segments in Tyres. One is for commercial vehicle tires and the other is for passenger car tyres. Also, research your competitors in the market where you want to start a business.
In the below section, check the comprehensive Tyre Franchise Business Model with the purpose and mission. A detailed business plan will not only help you get off to a good start but will also help you control your future business. Calculate an initial budget based on store rent, equipment costs, inventory, and required staff.
Is the Tyre Business Profitable in India?
If you are looking for an automotive retail business and are willing to make a solid investment, a Tyre shop may be perfect for you. Both retail and distribution offer decent margins in this business. In retail, there is usually a 30-40 percent markup, but there is a lot of competition. Private-label and discount tires often have better rims than major brands. Like Cam, the skill has very low marks.
| Article about |
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| Industry | Automotive Tyre |
| Headquarters | Depends upon the company |
| Cost | 30 Lakh to 45 Lakhs |
| Profit | 40% to 43% |
| Category | Business Opportunity |
Required Investment Cost to Start Tyre Business
The amount of investment depends on many factors and you should estimate it before proceeding. Real estate in your desired location will determine the initial investment you will have to bear. Later, the investment will increase depending on the interior of your showroom and the tyres and repair tools purchased. If you are short of cash, you can even apply for a business loan from the bank of your choice.
Here check the Required Documents to start a Tyre Business/ Distributorship:-
- Business Registration and Incorporation – State Government
- Business License – Your Municipality
- GST Registration
- Business Registration – Sufficient First Ownership
- Current Account
- Business Insurance (Optional)
Understanding the Market Dynamics for Tyre Business
Tyre Business is a relatively safer business opportunity because a Tyre can go bad at any time and whenever you have potential leads. If the main source of income in your hometown is selling and repairing tyres, it will be difficult for you to enter a market with such competition. If the city is growing gradually but has a large population, you would do good business.
After that, you need to monitor the market movements and pricing strategies of your competitors and then adjust the prices of your services accordingly. To determine the selling prices of all your products and services, you need to consider your profit margin to calculate your estimated revenue, and this will help you create a tyre business plan. This information is important to help you determine how many customers you need to reach your revenue goals.
Top Tyre Business Companies in India
1) Madras Rubber Factory (MRF) Tyres
Madras Rubber Factory, commonly known as MRF or “MRF Tyres”, is an Indian multinational Tyre manufacturer and the largest Tyre manufacturer in India. It is headquartered in Chennai, Tamil Nadu, India. The company manufactures rubber products including Tyres, treads, tubes and conveyor belts, paints, and toys. MRF also runs the MRF Pace Foundation in Chennai and MIDD – MRF Institute for Leadership Development in Chennai.
- Total Presence: 65 countries
- Origin: Started in the mid-1940s as a balloon factory
- Website: https://www.mrfTyres.com/
- Apply for MFR Dealership => Click Here
2) CEAT Tyres
CEAT Limited is an Indian multinational tyre manufacturing company owned by the RPG Group. It was founded in 1924 in Turin, Italy. It is present in the global market. CEAT manufactures more than 165 million tyres annually and manufactures tyres for passenger cars, two-wheelers, trucks and buses, light commercial vehicles, earth-moving machinery, wheelbarrows, tractors, trailers, and auto-rickshaws. The current capacity of CEAT’s Tyre factories is more than 800 tons per day.
- Total Presence: 130 countries
- Origin: 1924
- Website: https://www.ceat.com/
- Apply for CEAT Tyre Dealership/ Franchise
3) Apollo Tyres
Apollo Tyres Limited is an Indian multinational Tyre manufacturing company headquartered in Gurugram, Haryana. It was established in 1972 and its first plant was commissioned at Perambra in Chalakudy, Kerala (India). The company now has five manufacturing facilities in India, one in the Netherlands, and one in Hungary. It has a network of nearly 5,000 dealers in India, of which more than 2,500 are exclusive outlets. 69% of the company’s turnover comes from India, 26% from Europe, and 5% from other countries. Apollo announced to start of contract production in the two-wheeler Tyre segment in March 2016
- Total Presence: More than 100 countries
- Origin: 1972
- Website: https://www.apolloTyres.com/nl-nl/
4) TVS Tyres
TVS Motor Company (commonly known as TVS) is an Indian multinational motorcycle manufacturer headquartered in Chennai. It is the third-largest motorcycle company in India by revenue. The annual turnover of the company is three million units and the annual production capacity is more than four million vehicles. TVS Motor Company is also India’s second-largest two-wheeler exporter, exporting to more than 60 countries. TVS Motor Company is the flagship of the TVS Group, which is the largest company in the group by value and turnover.
- Total Presence: More than 70 countries
- Origin: 1982
- Website: https://tvseurogrip.com/
NOTE:- Now that you know how to start a Tyre business, you need to come up with attractive marketing plans to attract your customers. Since you are a new competitor in the automotive industry, you should build your customer base by offering free repairs to your customers for at least a few months to get all the hype and attention.
Tyre Dealership Apply Online in 2024 (Investment Cost & Profit)
