Automotive Industry: Develop Your Own Franchise Business

The Editorial Team , writer

Published at 05/10/2018, Updated on 04/05/2022 , Reading time: 5 min

Automotive Industry: Develop Your Own Franchise Business — Photo © automotive-industry-franchises.jpg

If you love cars, you can turn your passion into a career by opening a franchise in the automotive industry. Starting your own automotive business can be expensive and complex, but franchising gives you all the support you need to get your business on the road.

UK automotive industry

According to the SMMT (Society of Motor Manufacturers and Traders), in 2017 the UK automotive industry turned over an impressive £82 billion which added a massive £20.2 billion in value to the economy.

Despite there being a 3% decline in cars built in the UK in 2017, it was still the second biggest turnout since the turn of the century with 1.67 million cars built. There was also a slight decrease of 1.1% in the number of UK car exports with 1.34 million shipped worldwide – 79.9% of total production. However, engine manufacturing hit record-levels last year with 2.72 million produced in the UK, up 6.9% on 2016. This was influenced by the UK’s growing reputation as a centre for excellence in both design and manufacturing.

The UK automotive industry continues to manufacture cars that are in demand all over the world. There are, of course, some concerns about the UK leaving the EU in March 2019. The automotive industry is calling for clarity regarding the transitional arrangements for Brexit as there’s a fear that 10% of UK exports could be threatened as a result.

Automotive industry jobs

With the number of cars being produced in the UK rising, the demand for businesses that service these cars is also increasing. As such, it’s a great time to start an automotive franchise. But first, you need to decide which type of franchise you’d like to invest in.

There is a huge variety of automotive franchise opportunities delivering different services that customers need or want for their vehicles. You don’t need to have any experience in the sector that you choose as you’ll receive all the training you need when you become a franchisee. A passion for cars does help though.

Here are just some of the franchises you may want to consider:

>> Read more about: Car Repair - Start with a Franchise

Windscreen franchises

The ChipsAway franchise specialises in Small to Medium Area Repair Technology (SMART) repair processes. This van-based franchise provides freedom and flexibility for franchisees who take their mobile workshop wherever their customers need them.

ChipsAway was established over 20 years ago and has built an extensive network of car repair specialists all over the UK. If you like the idea of running a franchise where you control the hours you work, then ChipsAway is an excellent investment opportunity. You’ll need to raise an initial investment of £29,995 plus VAT. However, through various funding arrangements, this can be reduced to just £15,000 plus VAT. In return, you’ll receive hands-on technical training as well as marketing and sales support. Once your business you’ll continue to receive ongoing advice and guidance, marketing materials, and the use of a UK call centre that’s open 24/7 and directs business your way when you’re not able to get to the phone.

Tyre franchises

Etyres offers a unique franchising opportunity - as the first online tyre franchise in the UK, Etyres has found itself a niche in the market. Founded in 1992, it wasn’t until 1996 that Etyres opened its first franchise unit and began expanding across the country. Specialising in online tyre ordering and mobile fitting, this van-based franchise provides an essential service that is always in demand.

To become an Etyres franchisee you’ll need a minimum initial investment of £24,000. However, only 30% of this needs to be as a result of personal funding. In return for this investment, you’ll receive a franchise package that includes a comprehensive training programme, ongoing support, updates on product developments, equipment, and guidance on how to establish your new business.

>> Read more:

Car wash franchises

Autosmart is one of the UK's leading distributors of car cleaning products. Established in 1979, the business became franchised in 1999 and has continued to grow and develop its products and services over the years. Stocking a range of more than 200 cleaning products, this van-based franchise operates according to a compelling business model which empowers franchisees to provide excellent standards of service.

To invest in Autosmart, you’ll require a minimum investment of £15,000. Your franchise package includes a full training and support programme, access to Autosmart’s centralised customer database, and all the equipment you’ll need to get up and running. As far as automotive franchises go, this is one of the most affordable options out there.

>> Read more about: Start A Car Cleaning Franchise In 2019?

Car rental franchises

Sixt is a car rental franchise which was founded in Germany in 1912. Starting with just three rental cars, Martin Sixt had the vision to create a car rental network across Europe. The company, which is still run by the Sixt family, has come a long way in the last century, with a global presence in more than 110 countries. This impressive expansion has been aided by franchise opportunities being made available since 1998.

The cost of investing in this reputable and recognisable brand is substantial at around £440,000. But as you would expect from a franchise of this size and experience, the training and support package on offer is world class.

You’ll receive full support to help you choose the ideal size and mix of fleet vehicles, as well as the all the coaching you need to run a successful and profitable. Your training will be a combination of practical and classroom-based sessions which take place in both the UK and the Sixt Head Office’s high-tech training academy in Munich.

>> Read more:

Conclusion

As these examples of automotive franchises demonstrate, there really is something for everyone. You can choose to run a part-time van-based franchise or a make a substantial investment to represent a brand that has global reach and influence.

Each covers a different element of the automotive industry from rentals to repairs to cleaning. Take time to consider which franchise opportunity suits your needs and ambitions the best and remember to perform your due diligence before you make an investment of any size.