Starting a vehicle spare parts business in Kenya

Starting a vehicle spare parts business in Kenya is a promising business opportunity. However, it requires careful planning and strategic execution. In this blog, we will guide you through the essential steps to establish a successful vehicle spare parts business in Kenya.

Embarking on the journey of starting a vehicle spare parts business in Kenya calls for careful consideration and a well-thought-out plan. It’s not just about selling auto parts; it’s about understanding the market, legalities, and creating a reliable supply chain. Let’s delve into the key aspects that will guide you in this entrepreneurial journey.

Market Research

Before starting a vehicle spare parts business in Kenya, it is advisable to conduct thorough market research. Understand the demand for auto spare parts, the pricing dynamics, and identify reliable sources. Knowing your market sets the foundation for a successful business.

Areas to focus on;

1. The demand for auto spare parts

2. The relevant pricing strategy 

3. The most reliable suppliers

4. Your competition 

Register your business and get legal documents

Operating a business in Kenya without the government’s recognition is a serious offence that can cost your company. You can avoid these inconveniences and establish your business seamlessly by applying for all the necessary legal requirements.

They include:

Business registration

How do you plan to operate your auto spares business? 

The following are business structures available in Kenya

• Sole proprietorship
• Partnership venture
• Branch
• Public Limited Company
• Limited Liability Company
• Limited Liability Partnerships (LLPs)
• Business permit and license 

The county authorities demand that you apply for a business permit before operating any business. Hence, you should visit their offices and learn the right permits for your auto spares business.

Importation Legalities

As your business grows and demand increases, you may need to import auto spare parts stock from countries like Germany and Japan.

If you decide to go through this route, ensure you have an original commercial invoice, bill of landing, logbook, and pre-shipment inspection document. This will guarantee you a smooth importation experience.

Find the right auto spares supplier in Kenya

As you venture into the auto spares business in Kenya, it is advisable to get the best supplier which sells quality spare parts that will offer your clients prolonged service. When choosing a spare parts supplier, ensure they can source durable and robust car parts. The right supplier should also offer timely delivery services.

You’ll encounter different clients with unique needs; one client will need a Toyota Vitz radiator while another will opt for a Nissan Note spare part. Having a wide range of spare parts you can choose from draws a lot of sales, increasing your returns.

Stock fast-moving spare parts

Once you have all the legal documents and location requirements, it’s time to stock your shop. As a first-time spare parts business owner, you’re likely to choose low-demand spare parts unknowingly.

As a result, you should identify fast-moving car parts that will give you quick sales to boost your business growth. Here is a list of fast-moving auto spare parts you can stock:

• Headlights
• Tires
• Batteries
• Rear Lights
• Brake Lights
• Steering Wheel
• Fuses
• Shock Absorbers
• Fuel Filters
• Muffler Exhaust
• Lubricants
• Windscreen
• Side Mirrors
• Brake Pads
• Catalyst Converter
• Fuel Pump
• Control Arm
• Radiator.
• Transmission Fluid

P.S.The most highly demanded car brands include Toyota, Nissan, Mazda, and Suzuki.

How Afrilink Consultants helps you start your vehicle spare parts business in Kenya

1. Market and brand your business

Marketing plays a key role in building a customer base and sales. As a result, you should develop marketing strategies that will keep you ahead of your competition. Depending on the business environment, you can apply pricing techniques, advertising, and digital marketing. 

Additionally, you should leverage branding to create a positive impression of your business. So, what does branding entail?

Branding is the identity and story of a company or business. Some of the key elements that form your business brand include logo, tagline, tone of voice, and visual design. 

Partner with a shipping expert

As your auto spare business grows, you will need to secure more specialised spare parts and find stock at a cheaper price if you decide to become a wholesaler. Transitioning to this level can be an uphill struggle if you’re relying on local suppliers.

Fortunately, with a shipping expert, you can source all the auto spare parts you need across the world. So, find a reliable and established shipping professional who will help you ship your stock.

Build a strong supplier network

Selling a limited number of products makes you unreliable, pushing clients away. And if they find an auto spares dealer with all the parts they need, your shop becomes the last place they will visit again.

Always ensure you connect and collaborate with reliable suppliers who can deliver all the items you need. This will help you provide a wide range of spare parts, supplying our clients fully in good time.

Sell quality spare parts

Car owners are more knowledgeable in this era than in the past. They know how to inspect the spare parts’ durability and quality. If you sell fake products, they’ll find an alternative dealer who is reliable and leave your store for good.

Is auto spares a profitable business in Kenya?

The spare parts business is among the most profitable businesses in Kenya due to the increased number of car owners. It’s a great business opportunity that earns you a profit margin between 10% and 20%.

Conclusion

The spare parts industry is booming due to the increased number of car owners in the country. As a result, setting up a spare parts business in Kenya can give you high returns.

Are you ready to start a spare parts business? Reach out to Afrilink Consultants at;

📩 Contact us at: clientservice@afrilinkconsultants.com

📞 Call: +254707280366

🌐 Visit: https://afrilinkconsultants.com/