| Item | Estimated Cost |
|---|---|
| Shop Interior & Heavy-duty Shelving | ₹50,000–₹2,00,000 |
| Initial Stock (2-Wheeler Parts) | ₹2,00,000–₹5,00,000 |
| Initial Stock (Mixed 2W+4W Parts) | ₹5,00,000–₹15,00,000 |
| Computer & Auto Parts Billing Software | ₹20,000–₹35,000 |
| Trade Licence & Certifications | ₹5,000–₹20,000 |
| Sign Board & Branding | ₹15,000–₹40,000 |
| Shop Deposit & Advance Rent | ₹30,000–₹2,00,000 |
| Pre-operative Expenses | ₹10,000–₹30,000 |
Yes. Auto spare parts shops are eligible for: (1) MUDRA Kishor (₹5L) — small auto parts shop; project report required; (2) MUDRA Tarun (₹10L) — medium shop with 2-wheeler and 4-wheeler parts; (3) CC/OD working capital — for established shops with 1+ year of turnover; (4) PMEGP — if you also do manufacturing (filter assemblies, rubber parts, reconditioned parts) — up to ₹50 lakh. Banks readily fund auto spare parts due to steady demand — India has 30+ crore registered vehicles.
An auto spare parts project report must include: (1) Shop details — location, area, lease/ownership; (2) Vehicle segments served — 2-wheelers (bikes), 3-wheelers, 4-wheelers (cars/trucks/tractors); (3) Product categories — engine parts, filters, brakes, electrical, body parts, lubricants, tyres; (4) Project cost — shelving, computer, initial stock, signage; (5) Revenue projection — daily sales based on location and vehicle density; (6) Working capital — stock rotation (45–90 days), supplier credit; (7) DSCR ≥ 1.25; (8) CMA data with MPBF for CC limit.
Typical project cost for an auto spare parts shop: Shop interior and shelving ₹50,000–₹2,00,000; Computer + billing software ₹20,000–₹30,000; Initial stock (2-wheeler focus) ₹2,00,000–₹5,00,000; Initial stock (mixed 2W+4W) ₹5,00,000–₹15,00,000; Sign board and display ₹15,000–₹40,000; Trade licence and certifications ₹5,000–₹20,000; Deposit and advance rent ₹30,000–₹2,00,000. Total: ₹4–₹20 lakh depending on scale and vehicle segments.
Auto spare parts margins by category: Branded OEM parts (Bosch, Denso, Minda) — 12–20%; Local/aftermarket parts — 25–40%; Lubricants (Castrol, Mobil) — 8–12%; Tyres — 8–15%; Electrical parts (batteries, bulbs, switches) — 18–30%; Body parts (mirrors, bumpers) — 25–40%. Blended gross margin: 18–25%. A mid-size 2-wheeler parts shop in a busy area can do ₹5–₹10 lakh monthly sales with ₹80,000–₹2 lakh net profit. Banks look for DSCR ≥ 1.25.
A Cash Credit (CC) limit is ideal for auto parts shops to maintain stock without blocking capital. To qualify: 1+ year operation; Udyam registration; 12 months bank statements; ITR or audited accounts. MPBF (Tandon Method II): bank finances 75% of net working capital. For a shop with ₹8 lakh stock and 60-day rotation, MPBF ≈ ₹6 lakh. Banks: SBI, Bank of Baroda, Canara Bank, and Cooperative Banks commonly fund auto parts CC limits. Stock statement submitted monthly.
Yes. If you have an authorised dealership or service station agreement with a vehicle manufacturer (Hero, Honda, Maruti, Hyundai, etc.), banks are more willing to lend — the dealership agreement acts as an assured revenue guarantee. Loan options: MUDRA Tarun for smaller authorised service points, MSME term loan for full-fledged service centres, working capital limit based on parts inventory. The project report must include the dealership/service agreement, annual service contract revenue, and parts sales projection.