Are you an entrepreneur but you lack ideas on what automotive business to start? If YES, here are 100+ best business ideas in the automotive industry.

The automotive industry comprises a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles. It is one of the world’s largest economic sectors by revenue. When people aren’t buying new cars they are keeping their older cars longer, and all the services that are offered to keep automobiles for longer fall into the automotive industry.

The Autocare Association estimated that the US automotive aftermarket was worth $273.4 billion in 2017 – an increase of almost $35 billion in just four years. This shows an industry that is strong and is still growing bigger.

With the current economic stability being witnessed, new cars are flooding the country, while older cars are staying stronger for longer because of increased service offering in this industry. Apart from the sale of cars, the automotive industry has diverse niches that are all profitable. If you are interested in starting a business in the industry, you may want to look into the following automotive sectors.

100+ Best Small Business ideas in the Automotive Industry

1. Car Dealership Business 

A car dealership is a business that sells new or used cars at the retail level based on a dealership contract with an automaker or its sales subsidiary. The business employs automobile salespeople to sell their automotive vehicles. It may also provide maintenance services for cars, and employ automotive technicians to stock and sell spare automobile parts and process warranty claims.

This is a very viable business in the automotive industry, though it requires high startup capital. You should have in mind that the location of your dealership has an impact on the number of sales and profit you make in a given year. Effective marketing is also essential for you to make adequate sales in the business of car dealership

2. Tow Truck Business 

Tow trucks always come to the rescue when vehicles break down, and as such no community can do without one. A tow truck service can be a profitable venture, however, this type of venture requires a serious commitment of time and money.

You will have to spend time planning your business and finding ways to spread the word about your towing services. Purchasing a towing license and a tow truck in an urban area can cost you as much as $200,000 with no towing accounts in place. Overall, starting an automotive towing business can be a terrific and profitable business venture, provided a license can be obtained or purchased at a reasonable price.

3. Repo Business 

When people default on their automobile loans or fail to return rental cars on time, lenders and car rental companies need someone to help them retrieve the vehicles from those defaulters. This is where a repossession business comes in handy. The lien is a legal concept which gives the lender the right to take possession of the vehicle if certain conditions aren’t met, such as making monthly payments.

A repossession business is called in by lenders or leasing companies to repossess cars when owners default on their payments, or in the case of renters, when rental cars aren’t returned on time. The repossession industry is challenging and often profitable because the role of the repo man is tough. You need to be the aggressive, go-getter type of person to succeed in this line of work.

4. Mobile Car Wash Business 

A mobile car was is basically a car wash company that comes to you. Clients call up the car wash or book via an app, and the operators arrive at the chosen location to carry out the service. Car washes can be incredibly lucrative businesses but tend to require more startup capital and permits to get started.

However, a mobile car wash business is much simpler to start and can become profitable quickly. Full-time owners can earn as much as $75,000 in profits, according to Carbuffs, while those who operate businesses part-time can make as much as $50,000. This is assuming they detail five to seven cars per day during a five-day workweek.

5. Car Rental Business 

A car rental service is another cool transportation business an entrepreneur can successfully launch. Car rental services are all about making cars available for rent to those who may need cars for one purpose or the other. If you are looking towards starting a transport related business, one of your options is to go into car rental services.

If you live in busy cities like Tokyo, Las Vegas, Milan, and Lagos et al, then you would find it easy to keep your rental cars booked as this type of business is highly thriving and profitable in busy cities.

6. Mobile Auto Mechanic Business 

A mobile auto mechanic is an auto mechanic that takes his garage to the home of his client, instead of the other way round. This service is highly useful to people whose cars got stalled in transit, or those who just want a convenient service. An increasing number of people now demand mobile auto mechanic services because of one reason or the other. This industry is indeed witnessing a huge boost in profit and it is far from getting saturated.

7. Car Wash Business 

Another easy to establish but highly profitable business which an entrepreneur who is all out to make money should think of starting is a car wash. The market for car wash is driven by the purchase of cars and an increase in consumer spending.

So, if the economy grows and people buy more cars, you will many people patronize your services. Location plays a huge role in the success of car was businesses, so if your car wash shop is visible and easily accessible, more people will come to you.

8. Driving School Business 

A driving school is a licensed school that teaches people how to drive motor vehicles safely. Since the younger population need to attend a driving school before they are certified fit for driving, this creates the business opportunity for anyone who intends opening up a driving school.

You’ll just need to be aware of some of your state’s requirements, know who is currently providing driver education services in your area, and then get the word out about your driving school. Once you get up and running and position your business properly for your area, you’re success is almost inevitable.

9. Mobile Auto Detailing Business 

Mobile Auto detailing can be a great way to earn a living and run a successful business. The business doesn’t require tons of training or up-front investment to set up. To start this business, you are not required to have a four-year degree or any specific certification before you are given a license.

But you do need to know all of the proper methods and the business side of the industry in order to be successful. Customers pay good money for auto detailing, and since nearly all of your start-up costs are one-time fees, you can quickly make that money back and will soon be turning a hefty profit.

10. Car Parts & Accessories Store Business 

Cars break down from time to time and for that reason, there have to be car parts that can be used to make replacements. Yet another profitable business you can start in the automotive industry is the sale of these replacement car parts and accessories. This business may require huge startup capital as you need to register the business, get a location and stock up the required car parts and accessories. But once your business is set up, it is easy to make sales.

11. Limo Service Business 

A limousine (or limo) is a luxury sedan or saloon car generally driven by a chauffeur and with a partition between the driver and the passenger compartment. Limousines are no longer limited to stretched Cadillac and Lincoln automobiles.

Today’s limos include mile-long Hummers, vintage Rolls Royces, and theme vehicles with built-in hot tubs, grand pianos and even disco themes, complete with the mirror ball and mini dance floor. If you can afford to start a limo rental service, then you are in for a profitable business. Most limos charge an hourly rate which can range anywhere from $75 to $200 per hour depending on the company and the style of the limo.

12. Car Hauling Business 

The business of car hauling is great if you have a passion for cars and want to travel and get paid for it. It is the kind of business that knows no bounds. You could do it within the confines of your local neighborhood or expand it to the state or even the entire country if you want. A driver with good experience and skills who has a contract to haul new cars for a car maker will likely make between $75,000 and $110,000 a year.

13. Small Engine Repair Business 

A small engine is the general term for a wide range of small-displacement, low-powered internal combustion engines. Equipment you will repair as a small engine technician will includes chain saws, string trimmers, leaf blowers, snow blowers, lawn mowers, wood chippers, go-karts and sometimes more powerful engines used in outboard motors, snowmobiles, and motorcycles.

Small engine repair businesses can be extremely profitable, but they will need a high volume first. An owner would need to repair 6 – 8 lawn mowers a day at a $45 profit to make $90,000 a year.

14. Road Side Assistance Business 

Vehicle breakdowns are a daily occurrence. Whenever such happens, the services of a roadside assistant is needed. A roadside service business requires you to be available 24 hours a day, seven days a week. Customers will need you to unlock their cars, jumpstart dead batteries, bring them gasoline, repair a flat tire or tow them to the closest auto mechanic.

While you can directly market your services to customers, it is usually wiser to first market your new business to road side assistance programs like insurance companies, AAA and local auto dealers to get the approved guidelines necessary for your road side assistance business.

15. Wrecker Services Business 

A wrecker, a breakdown truck or recovery vehicle is a truck used to move disabled, improperly parked, impounded, or otherwise indisposed motor vehicles. This business is much appreciated by the driving public as it seeks to clear the roads of wrecked vehicles, but you may not get much appreciation when you tow out an improperly parked vehicle. To start this business, you will need your tow truck and the required licenses and permits.

16. Valet Parking Service Business 

Valet parking means that you leave the car at a hotel or restaurant entrance with the keys in the car and an employee parks the car for you. When you need your car, the attendant retrieves your car from its parking place. Valet parking is a common parking system in the bigger hotels in larger cities.

Restaurants, hotels and convention centers can all use the services of a well-dressed, bonded parking staff. The key is having your own team of drivers to keep things moving at a fast pace. The average cost for a Valet Parking Services is $300 per event. A valet parking business can be lucrative, since startup costs are low and the ability to make money is high if you offer services to busy venues.

17. Self Defense Driving School Business 

Defensive driving is the act of driving under special conditions. It may involve driving under pressure to save time, lives or money. Examples of defensive driving situations are driving a bullion van, chasing a crime suspect, evading criminals, driving an ambulance, getting out of a dangerous situation.

In defensive driving classes, students learn to improve their driving skills by reducing their driving risks by anticipating situations and making safe decisions. If you have expert defensive driving skills, you can start a self defence driving school.

18. Car Tracking Business 

If you’re considering starting a car tracking business, you’re starting on a good track for success. A car tracking business has many factors that make it attractive for entrepreneurs, including the perk of recurring revenue from service subscriptions. The business of vehicle tracking in has a huge market potential owing to vehicle theft and other insecurities. This business would thrive more in an area that has security issues.

19. Car Leather Repair Business 

Most cars usually come with leather seats and leather interiors and when these leather interiors are exposed to sun or heat, there is a tendency for the leathers to rip off, tear, burn, leave heat marks, have holes, stains, drastic color loss, peel, get rough and crack, hence the need for the services of a car leather repair company.

Car leather repair is an easy business to carry out as you need to identify the seat material, then assess the scale of the material wear-out, whether it is a tear, rip, burn, scratch, scrub, hole, etc. You then apply the most cost-effective and long-lasting restoration to the car seat that makes it look like it’s straight from the factory.

20. Mobile Windshield Repair Business 

The windshield repair business is a service that offers windshield repair and replacement. This business gets rid of problems associated with windshields such as leaking, rust, and paint damage that can happen from improperly installed or damaged windshields. This is a very environmentally friendly business.

Most damages caused by road debris are repairable, and the repair will stop the damage from spreading and eliminating the need for replacement. If you are a fast learner and have been looking to start your own small business, then repairing windshields can be a lucrative business opportunity, especially if you live in a locality with plenty of cars.

21. Electric Car Business 

An electric car is an automobile that is propelled by one or more electric motors, using energy stored in rechargeable batteries. As a way of preserving the planet, may drivers are now turning to electric cars. You can start an electric car business by opening an electric car dealership where you get to sell the cars to buyers, or you can open a charging or repair shop.

22. Classic Cars Business 

A classic car or oldtimer is an older automobile; the exact definition varies around the world. The common theme is of an older car with enough historical interest to be a collectible and worth preserving or restoring rather than scrapping.

Cars 20 years and older typically fall into the classic class. If you have enough vehicle history and you have enough money to start up a business, you can start sourcing for and selling classic cars. If you are also mechanically inclined, you can also open a classic car repair shop.

23. Motorcycle Business 

It should be known that one of the most efficient means of transportation available is the motorcycle. Not only is it easy to use, but motorbikes are also efficient in their consumption of gasoline. Other perks of running a motorcycle business are that motorbikes are cheaper to repair and maintain than a car, truck, or van.

You can start a motorcycle business by opening a store that sells different brands of motorcycles. Starting a motorcycle dealership is quite tasking as there are a lot of things to look into.

Things like license, permits and the ideal location. You should seek for capital to startup the business by getting a business loan from a financial institution or from friends or relatives. Once you have settled the issue of loans, you have to make contact with the manufacturers of the brand of bikes you wish to sell and arrange a purchasing order. Discuss warranty options, shipping fees and bills of sale regarding customs.

24. Camper Van Business 

A camper van sometimes referred to as a camper, or a caravanette, is a self-propelled vehicle that provides both transport and sleeping accommodation. The term mainly describes vans that have been fitted out, often with a coach built body for use as accommodation outside a home.

Due to the fact that a lot of people have taken to road trips, camper van businesses are back and flourishing. There are many ways to get into the camper van business; you can sell camper van, rent them out, or start a conversion business.