Trends and Facts About Automotive Franchises
Asia encompasses a vast landmass - around 29.3 million square kilometers. And being one of the planet’s most densely populated continents, the need to travel for commerce and leisure is central to Asia's growing importance in global economics.
The Asia-Pacific region is home to some of the most significant vehicle producers, so whether trading or manufacturing, the automotive industry is thriving throughout the continent of Asia.
In fact, over 40% of the global automotive manufacturing output comes from Asian countries, producing over 37 million units per annum.
There are 17 million passenger cars in Indonesia alone, demonstrating the need for reliable private and public transportation is going strong.
The People’s Republic of China has seen more than a decade of significant growth in the new car market, accounting for 25% of global production capacity in 2011.
Franchising provides the opportunity to benefit from the reputations of well-known brands. And there are no more recognizable brands than in the automotive industry. There's a range of vehicle-making manufacturers directly associated with Asian member-states such as Suzuki, Kia, Nissan, and Mitsubishi.
Whether it’s manufacturing or sales, taking a slice of the pie from internationally renowned brands is a path to successful business growth, available for small- to mid-sized businesses and major corporations alike.
Adopting recognizable brands brings the benefit of an existing reputation and a demonstrable record of profit, growth, and sustainable expansion.
Whether it's regional sales or entry into the international market, the automotive industry provides enormous opportunities for both imports, exports, and local commercial opportunities.
Big or small, brand new or second-hand, the car and vehicle industry offers fantastic franchise opportunities to anyone with the ambition and desire to work for themselves.
Banks Lend To Franchises
New, independent businesses are notoriously vulnerable in terms of financial risk, while franchises are generally considered to be a safer environment for attracting start-up funds. Banks and private lenders tend to favor the franchise model because the company comes with established credentials and a proven record of growth, financial stability, and future potential.
Franchise businesses are built on robust, proven financial foundations with a history of turnover and an existing customer base, providing the confidence that banks and lenders will see a return on their investment.
Franchising offers certainty and stability by tapping into existing markets, making a franchise business an attractive proposition for banks and funders.
- Motor vehicle production in the ASEAN region saw massive growth in the past decade. Countries such as Myanmar, Malaysia, Indonesia, Thailand, and Vietnam saw healthy growth in their output
- Asia accommodates 60% of the planet’s population - 4.5 billion people throughout 49 nations
- Asia is a significant financial player in terms of GDP, earning $65.5 trillion in 2019
What type of automotive businesses can you franchise?
The automotive industry supports both the consumer market and the commercial/industrial sector.
From second-hand, brand-specific showrooms for the general public to entire vehicles and parts manufacture, the industry is perfect for engineers, mechanics, technicians, and sales-people alike.
Wherever there’s a need for travel, there’s a demand for vehicles - whether it’s maintenance, upgrading, downgrading, or sales.
Franchise vs. Independent
It takes time and effort to build a reputation, and - for many independent companies - failure comes before hitting critical mass.
On the other hand, franchise businesses offer stability in an otherwise treacherous path into self-employment.
As many as half of all independent start-ups file for bankruptcy within the first two years. Franchising, however, offers a more secure route to growing your own business and becoming your own boss.
Explore our automotive and car franchises and discover a rewarding and satisfying approach to going into business for yourself.
Becoming your own boss has never been more achievable and realistic.
Purchase a franchise today from Franchise Direct.