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How to Start a Car Wash Business in India?

There will be demand for car wash business as long as there are vehicles on the road. It’s like an Evergreen Business.

The demand for this business from year to year will increase but not decrease. Another good thing about this industry is that you can start this business with less capital.

In this article we will give you complete information related to the car wash business, which includes car wash business pan, machinery and equipment required, licenses and certificates required, car wash set up cost, profit margin, etc.

Car wash business

Car wash business plan

  • It is important to choose a good location to start a car washing business. The best places to start a car wash business are in high traffic areas, near petrol bunkers, near upper middle class residential areas etc.
  • Make sure your store has good visibility. Also, look for demand and competition for this business in that location.
  • You need at least 4,000 to 5,000 square feet of space to start a car wash business. For shop, you require at least 800 square feet and the rest of the area to park vehicles.
  • For this business, a shop rental of 15,000 to 25,000 rupees can be considered safe. It depends on the location and the total space.
  • You need the right water source for this business, such as a borewell connection. Water can be brought using water tanker, but it is little expensive.
  • It takes about 30 to 35 liters of water to wash a car. Suppose you wash 15 cars a day, you require 550-liters of water. You also need a tank to store water.
Car Wash Business Plan
  • Your shop needs at least 2 to 3 workers. You can set salaries of between 10,000 and 15,000 rupees a month for workers.
  • The car wash business is a service-based business, so your success in this business depends mainly on the quality of your service.
  • If you provide good service, you don’t need any marketing to promote your business. Over time you can easily conduct business by word of mouth and with regular customers.
  • How much you charge for your service is also matters in this business. You can charge hatchback cars at Rs 300, sedan 350, and SUVs Rs 400. These prices vary in rural, suburban, and metro cities. You need to determine the price by looking at your competitors.

Also Read: Tyre Re-cycling Business | Complete Guide

Licenses and registration required

To start a car washing business, you require these licenses and certificates,

  • Shop and Establishment Certificate
  • GST Registration (required only if your annual turnover is more than 40 lakhs)
  • Business Registration – Sole proprietorship is enough
  • Pollution certificate (required only if you apply for a loan)

If you require a business loan then you can approach banks like SIDBI.

Machinery and Equipments Required

  • Hydraulic car wash lifter - 1 lakh to 1.3 lakhs ( other option is manual underbody lance, costs 7 thousand  )
  • Commercial pressure washing machine – 50,000 rupees
  • Vacuum cleaner – 12,000 rupees (dry and wet)
  • Polisher – 8,000 rupees
  • Blower  –  6,000 rupees

Optional equipments,

  • Steam cleaner - 15,000 rupees
  • Glass Vac - 7,000 rupees

Chemicals required

For car exterior cleaning,

  • Foam shampoo
  • Body shiners like Wax, liquid polish, creme polish.
  • Compounds like  liquid sandpaper, scratch remover
  • Degreaser  to remove oil markers.
  • Tyre polisher

For car interior cleaning,

Multi cleaner, polish liquid, upholstery cleaner, leather cleaner & conditioner, glass cleaner.

Car wash setup cost in india

Car wash setup cost

To start a car washing business in India, you require an investment of 3.5 lakh rupees.

Here is the breakdown of the above-said amount,

  • Hydraulic car wash lifter -> 1 lakh to 1.3 lakhs
  • Other machine/Equipments -> 1.2 lakhs
  • Chemicals -> 15,000 rupees
  • Other expenses -> 50,000 rupees ( like a tank for water storage, signage, racks, etc)
  • Shop security deposit -> 35,000 rupees ( Varies according to location )

Ongoing monthly expenses are shop rent, labour salary, electricity bill, water charges, chemical purchase, maintenance, etc.

Car wash business profit margin

In the car wash business, you can expect a profit margin of up to 40% of your service charge.

So your monthly profit will be decided by the total cars you wash, after deducting all the expenses. The monthly expenses are labor salary, shop rent, any maintenance charges, utility bills, water bills,s, etc.

The profit margin mainly depends upon whether you have your own shop or taken on rent, whether you work in the station, water resources available, etc.

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Steps involved in car washing

  1. Interiror cleaning - This includes mat cleanng, carpet cleaning, seat cleaning using blower/air compessor, glass cleaning etc.
  2. Exterioor cleaning - This includes high pressure spray at body, under body, wheels and engine. Washing involves foaming, rubbing and rinsing.
  3. Drying - Drying using air compresssor.
  4. Polising - Polishing dashboard, plastic prts, bumpers & external mouldings.
  5. Advanced cleaning (Optional) – This involves seat & door interior using upholstery cleaning nozzle, headliner cleaning, floor liner cleaning, spot removing, steering wheel cleanin, etc.
  6. Detailing (Optional) – This includes chemical tyreatmnet, compound rubbing, claybar. wax treatment, teflon coating, ceramic coating, etc.

FAQ about car washing business

  1. How much space is required to start a car washing business?

    you require a minimum of 4000 to 5000 square feet of space to start the business.

  2. How much investment is required to start a car wash business?

    You can start a with 3.5 lakh initial investment.

  3. What is the profit margin in the car wash business?

    You can expect a profit margin of up to 40% in this business

I hope this article has resolved many of your doubts related to the car wash business. If you have any suggestions feel free to mention them in the comment box below.

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