Pakistan

How to Start Car Repair & Service Workshop in Pakistan

Auto repair and service workshop is a service facility where auto mechanics repair automobiles, provide basic and extensive auto related services as well as schedule maintenance. It also offer paintwork repairs to scratches, scuffs and dents to vehicle damage as well as damage caused by collision and major accidents.

The auto repair industry is highly competitive. Each workshop within this field has high capital costs, low margins, and a high intensity of competition, but thanks to the increase in sales of cars in Pakistan, which drives the need and demand of high quality auto repair and service workshop.

The car workshop business is very much dependent on the location of its setup. Auto Workshops located on main roads or prime locations to target maximum walk-in customers as well as customers coming in from contacts, referrals and companies. This setup can be established in cities like Karachi, Lahore, Rawalpindi, Hyderabad, Faisalabad, Multan, Peshawar and Quetta etc. This business can also be undertaken in all small 2nd tier towns in addition to suburban towns of large cities.

The workshop with computerized diagnostic system uses a number of tools including scanners, mechanical repairs tools box, denting tools box and tools for painting to provide services to the customer’s car.

Mechanical Services Process Flow

Below is the basic process flow for mechanical repairs at a workshop in Pakistan.

  1. The customers comes in with the mechanical problems of his car
  2. Wherein a job card is prepared based on the problems faced by the customer. The foreman then further run the diagnostic checks of the car for any additional problems.
  3. The customer is then provided with time and cost estimates depending on whether the parts need to be repaired or replaced. On agreement of the customer, the job is allocated by foreman to the concerned mechanic.
  4. It is necessary to test run the car by the foreman before it finally delivered to the customer, for quality assurance.

Denting and Painting Services Process Flow

Below is the basic process flow for denting and painting services at a workshop in Pakistan.

  1. The customers comes in with their damaged cars
  2. Wherein a job card is prepared based on the problems faced by the customer. The foreman then further run the diagnostic checks of the car for any additional problems.
  3. After the estimation of time and cost, the car is given to the Head Denter who reshapes the car back into form and hands it over to the painter.
  4. Initially the reshaped body is prepared for painting by applying coating and patch filling, which are then smoothed by rubbing.
  5. The body is then painted and left for drying after which waxing are applied to ensure proper shine.
  6. In case of accidents, irreparable parts are replaced before making the final delivery to the customer.

The operational capacity of the proposed workshop is 347 cars per month. The assumed operational capacity during the first year of operations is 60% with annual increase of 5%. Total cost estimates is Rs.2,933,512 with fixed investment Rs.1,907,500 and working capital Rs.1,026,012. Given the cost assumptions, IRR and payback are 43% and 3.5 years respectively. Details of these financials can be studied in the auto repair services workshop business plan by SMEDA.

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