HOW TO START AN AUTO SPARE PARTS BUSINESS IN KENYA
With many cars on Kenyan roads, the auto spare parts business is a booming business in Kenya.
People need to change auto parts from time to time and when a car breaks down, thereby providing a large market for auto spare parts business.
To start the business, you should have one thing in mind; that there is competition, very stiff, but if you do what we mention below in this article then it will be a smooth sail for you.
First you should understand that most Kenyans import cheap cars from Japan, either by SBT or purchase locally from Car Bazaar.
Having this in mind, the spare parts to source include Toyota car spare parts, Mazda spare parts, Isuzu spare parts and Nissan spare parts.
These are the vehicles that dominate the Kenyan roads.
From our research, you need at least half a million to start the business. I guess it’s quite some amount but you can manage.
Data we have here shows that over 80% of Spare parts businesses in Kenya post profits of over Sh.100,000 per month. But there are selected few that make up to Ksh.3 million per month.
*Research the Market*
This is one of the most crucial things to do before starting a business. Research helps you answer some of the questions you might have like; who are my target customers? Which place is most suitable for the business? How long will it take the business to pick up?
All these will help you get a better plan for the business.
To win in business, you must first understand the market and how the business works.
As such, you need to do a comprehensive market research. When researching the market, seek to understand auto spare parts in demand, good business location, auto spare parts pricing, where to source auto spare parts, etc.
*Write a Business Plan*
Once you have carried out comprehensive market research, the next thing is to write a business plan.
A business plan acts as a roadmap for any business.
You get to layout your business goals and ways on how you plan to achieve them and also the period you are sure to have accomplished them.
A business plan is very helpful since it keeps you on track with your goals, helps you identify your areas of weakness, and will also help you with investors.
If you have researched the market, it becomes very easy to write a business plan. You will need to put down your findings on a paper.
Some of the items to list in your business plan include:
*Business location
*Startup capital
*Auto spare parts suppliers
*Strengths and weaknesses of the business
*Risks and how to mitigate them
*Identify a Good Business Location*
The next thing is to find a good business location for your automobile spare parts.
Look for a place where there are many cars or near a business related to motor vehicles.
For instance, you can start your auto spare parts business near a car wash, petrol station or a garage.
These are complementary businesses that can help you get customers.
*Register Your Business and Secure Business Permits*
For every business in Kenya, there are legal formalities to go through before setting up the business.
First, you will need to register the business and then get a business permit which you will be renewing annually. You will also be required to have a KRA Pin for tax payment and a National Health Insurance Fund for health insurance and you are good to go.
It will cost you around Ksh.1,000 to register your business on E-Citizen while business permits will cost your around Ksh.10,000 annually.
You will need to present your KRA certificate and a copy of your ID.
*Cost of Starting an Auto Spare Parts Business in Kenya*
The cost of starting an auto spare parts business in Kenya depends on the type of spare parts you are selling, business location, and the size of your business.
To start a small spare parts business in Kenya, you need at least half a million.
Most of the money will go into buying spare parts inventory.
*Fast Moving Auto Mobile Spare Parts in Kenya*
To make significant revenues from the auto spare parts business, you need to stock fast-moving spare parts.
They include headlights, rear lights, brake lights, steering wheel, tires, batteries, fuses, shock absorbers, fuel filters, muffler exhaust, lubricants, transmission fluid, windscreen, side mirrors, brake pads, catalyst converter, fuel pump, control arm, and radiator.
When buying car spare parts, also consider dominant car brands like Toyota, Suzuki, Nissan, Mazda, Suzuki, etc.
*Where to Source Auto Mobile Spare Parts in Kenya*
There are many places you can source auto spare parts for your business in Kenya.
First, if you have the means, you can import directly from countries like Japan and Germany.
If you don’t have the means, you can source automobile spare parts from major towns like Nairobi, Kisumu, Mombasa, Eldoret, Nakuru, Thika, Meru, and Nyeri.
Look for reputable auto spare part wholesalers in any of these places.
*Best Places To Buy Automobile Spare Parts In Kenya*
Below is a list of the best places to buy automobile spare parts in Kenya.
The list focuses on renowned dealers who sell genuine spare parts, both new and used spare parts for all vehicle models.
In no particular order, here is a list of the best places to buy automobile spare parts in Kenya.
*1. Sparesworld Limited*
They offer the best and highest variety of automobiles spare parts at the best possible price.
Contacts: 0799 036 144, 0799 036 133
*2. Motorshop Kenya*
Motorshop is Kenya’s largest auto media vehicle that provides a platform where car buyers and owners can buy and sell cars, and all types of vehicle spare parts.
Location: Marsabit Plaza, Ngong Road, Nairobi.
Contacts: 0707 522 033, 0724 629 596.
Email: info@motorshop.co.ke.
*3. General Automobile Corporation Ltd*
The company provides spare parts for cars, a full range of Japanese vehicle trucks, agricultural and heavy machinery parts and equipment.
Contacts: +254 111 510 289, 0796 510 289.
Email: sales@gaclmsa.com
*4. Amex Auto Parts*
Amex is an automotive parts megastore dealer, distributor and seller in Kenya, with branches in Nairobi, Kisumu and Nakuru.
Contact: 0714 300 400
Email: marketing@amexautoparts.com.
*5. Shamas Motor Parts Limited*
They offer quality and affordable, used and new spare parts for all car models available in Kenya.
Location: Off Baricho Road, Nairobi.
Contacts: 0796 212 916, 0745 718 120.
Email: parts@shamasea.com.
*6.Simco Autoparts Limited*
Simco Autoparts is one of the major distributor and wholesaler of motor vehicle parts in Kenya, stocking a wide range of popular brands.
Location: Simco Plaza, Lusaka Road, Industrial Area, Nairobi.
Contacts: 0722 700 622, 0733 912 078.
*7. Kompressor Auto Spares*
They sell quality spare parts from renowned German car brands, Mercedes Benz and BMW.
Contacts: 0712 983 322, 0722 983 322
Email: info@kompressor.co.ke
*8. Maben Auto Spares Ltd*
They sell high-quality vehicle accessories and spare parts, both new and used spare parts.
Contact: 0726 696 078.
*9. Impala Auto Spares Ltd*
They are leading importers, retailers and wholesalers of auto parts in Kenya, with branches in Nairobi and Kisumu.
Contacts: 0714 365 315, 0734 365 315.
*10. Kasimolo Auto Masters*
They supply the best products available, from new auto spares to aftermarket car parts for Subaru, Toyota, Nissan, Volvo, Honda, BMW, Mercedes Benz and Volkswagen.
Contacts: 0722 267 301, 0722 623 775
Email: info@automasters.co.ke
*Is Auto Spare Parts Business Profitable in Kenya?*
The profitability of your auto spare parts business depends on some factors like business location.
The profit margin of the motor spare parts business is between 10% and 20%.
Data we have here shows that over 80% of Spare parts businesses in Kenya post profits of over Sh.100,000 per month. But there are selected few that make up to Ksh.3 million per month.
To make it in the business, ensure that you have spare parts for dominant car brands and then establish your business in a busy location.
The best and cheapest way to obtain spare is by importing direct from the source through credible online spare parts companies.
*Finally*
Starting an automobile business in Kenya is easy, but capital intensive.
For many people wanting to start this business, their biggest challenge is startup capital.
If you want to start the business, look for areas near car parking, petrol station, garage, or carwash.
Then make sure to sell quality and genuine spare parts. If customers trust that you sell genuine spare parts, they will refer their friends to your business.
By
Timothy Angwenyi
Business Consultant
Justine Nyachieo
Business Man & Mentor
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