How to open a new authorized service center for automobiles and get a franchise

Interested in starting an authorised service station for cars in India? Looking for guidance to start a car/ bike/ active repair business? Get tips and suggestions to run your new venture and earn money from it. Also, know requirements, estimated expenses and profits, and all you need to know to run this business.

The automotive industry always remains a big hit. Having a two-wheeler or a four-wheeler is not a luxury anymore; it's a necessity now. Hence visiting a service garage for repair or car wash is the need of this era. So if you are also planning to run a car or scooter repair business, then it definitely not a bad idea. But which is a better option is what you need to decide, namely buying an already operating repair shop or starting a brand new center or choosing a car service center franchise like Maruti, Honda, Mahindra First Choice, 3M car care, etc.


The first question is how much investment you have in your hands? If we talk about a Maruti Suzuki dealership, then you must have approximately Rs. 50,000 in your hands. This figure varies from location to location. So, if you are planning to operate in a metro city then you may have to spend more bucks. Other than this, you are asked to submit a Demand Draft of Rs. 1,00,000 as investment/ security amount. Wait! This figure is of liquid cash only. Other than this, you should own land and get one on lease. The minimum area required for this purpose depends upon many factors. On average, you should have approximately 3500- 4500 sq. ft. of carpet area to run authorized garage from any company.

car service station

Similarly, Mahindra First Choice franchise requirements include a one- time investment of Rs 60 lakh to 1.15 crore and minimum carpet area of 7500 to 10000 sq. ft. for running a four wheeler service station.

Other requirements to run this business profitably are:
  • Creative and innovative mind.
  • Ability to provide complete satisfaction to the customer with high quality service.
  • Skilled and unskilled staff.
  • Arrangements of power backup.
  • All required approvals from the government authorities.

Steps to start 2-wheeler/ 4-wheeler repair service business

If you are looking for a franchise from Maruti Suzuki/ Mahindra First Choice/ Honda service center, then you have to get in touch with their marketing team. You can do this by filling an online form (I have shared few links here), or talk to their marketing representative at the contact number or email provided herewith.

You can apply for a franchise of Mahindra four wheeler service at

To apply for the Mahindra Express franchise, click at and to apply for a two-wheeler franchise opportunity, go to

Mahindra contact details: +91 7428504839,
Maruti Suzuki contact details: +91-9899915400, +91-9619651105,
Honda contact information: +91(0)124-6712800, +91 (0)124-6712950m

Similarly, if you want to run a new service station without taking any distributorship, you need to plan your place accordingly, i.e. it should be at an acceptable location. Explore the market and purchase the required tools and equipments. Here is a list of the most important tools and types of equipment required to up an independent automotive garage-
  1. A 2 post lifts, a 4 post lift and an alignment lift. (One lift per technician. Get more if you have space.)
  2. Diagnostic scan tool
  3. Alignment system
  4. Hand tools and specialty tools
  5. Tool storage
  6. Torch kit/ Oxy acetylene torches
  7. Welder
  8. Automotive service data system
  9. Tire changer
  10. Tire balancer
  11. TPMS tool
  12. Multimeter
  13. Floor jacks
  14. Transmission jack
  15. AC recovery machine
  16. Fluid flush machines
  17. Engine crane
  18. Strut compressor
  19. Air tools
  20. Air compressor
  21. Smoke machine
  22. Air hoses
  23. Oil drains
  24. OBDII scanner
  25. Hand drill
  26. Ear protection
  27. Eye protection
  28. Engine hoist
  29. Fire extinguishers
  30. Angle Grinder
  31. Oil Caddy
  32. Brake lathe

Looking for any other detail on this topic? Post your question as a comment below and I shall try my best to provide you with the best solution.

Article by Nidhi
Nidhi is a freelance content writer with 10+ years of experience. She has a great passion to write on valuable topics so as to provide precise information to her readers.

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Guest Author: Virender singh03 Jan 2021

Respected ma'am, can you please guide me that how much will it cost to start a Hyundai service station franchise excluding land?

Author: Nidhi04 Jan 2021 Member Level: Gold   Points : 1

Mr Singh,
Thanks for reading my article. I suggest you contact at the Hyundai contact details provided above as the cost may vary depending upon various factors including the place where you want to open the centre.

Guest Author: Ayush26 Aug 2021

I want to start a Suzuki two-wheeler service center. I own a shop of about 400 sqft. Please guide me on how do I apply for the franchise.

Guest Author: Jyotiraditya19 Aug 2023

I want to open an authorised Maruti workshop. Please let me know how much land I need and how much money Maruti will take to give an authorisation for the service station and what the expense will be at a minimum cost of building it.

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