Trends and Facts About Automotive Franchises
North Americans love their cars. In fact, the Canadian automotive industry is the second-largest market in North America. Around 1.7 million new cars are sold annually in Canada, which doesn't include the massive market for second-hand vehicles.
In short, automotive franchises offer an excellent opportunity to supply Canadians with their vehicular needs! As well as selling new and second-hand vehicles, automotive franchises also manufactured 15% of North America's cars, vans, and trucks.
As well as sales and manufacturing, some automotive franchises provide aftercare services, such as valeting, mechanical maintenance, and customization services that help prolong the life of vehicles while adding unique features that make them stand out.
According to Reogma (the Canadian Automotive Aftermarket specialist), the aftercare market is worth almost $18bn a year, employing around 5m employees.
So, the automotive sector is an essential contributor to the Canadian economy.
Automotive franchises in Canada offer a wide range of products and services, including:
- New vehicle sales
- Second-hand vehicle sales/trade-ins
- Maintenance and repair
- Cleaning and valeting
- Vehicle rentals for both commercial and consumer markets
- Customizations and accessories
- Deliveries and courier services
So, if motor vehicles are your passion, imagine how fulfilling it could be to supply and maintain customers' cars, trucks, and motorbikes. Get your hands dirty, and keep Canada on the road with an excellent automotive franchise opportunity.
Read on to find out how.
Why Franchising?Franchising is commonly considered the common sense way to go into business. This is because investing in a franchise affords you the benefits of taking on a functional business with:
- A fully operational business model
- Established and instantly recognizable branding
- A client base of customers who already know and trust you
- A functioning and established supply chain
- The ongoing support of an expert partner
On the other hand, going into business independently is fraught with existential challenges. Starting from scratch demands that you cut through the noise of established competitors in a saturated marketplace. This means that your first years of trading are often slow, making it difficult to recoup your startup investment.
However, investing in an automotive franchise means opening up shop with immediate curb appeal, with branding that potential clients already know and love. This means that you're more likely to recoup your investment more quickly, attracting customers from the moment you open your doors to the public.
In addition, you're never on your own with a franchise — you'll receive world-class training to ensure you're capable of maintaining your parent company's excellent reputation for outstanding customer service and expertise. And your automotive franchise partner will share their business model and skills to ensure you're in the best position to maximize the benefits of your investment.
Some automotive franchises also offer a raft of HR services, ensuring your new business complies with financial, employment, and business regulations. That's the stuff that keeps most business owners awake at night, making the HR support offered by some franchise partners worth its weight in gold!
Remember, with automotive franchises, you get:
- Expert training
- Market insight, helping you remain one extra step ahead of the competition
- An experienced partner supporting your new venture every step of the way
- Immediate curb appeal, drawing clients to your sales unit from the moment you open your doors for business
Facts About Automotive Franchises
The automotive franchise marketplace is changing and shifting towards greener technologies. That includes, of course, electric cars, trucks, and motorbikes, for which customers are willing to pay a premium.
Statistics Canada states that new registrations of zero-emission vehicles (ZEVs) hit a critical milestone in 2021, accounting for 5.2% of all new motor vehicles registered. That might not sound a lot, but sales of electric cars are projected to hit $5.37bn in 2023, demonstrating an annual growth rate of over 20%.
This switch to greener vehicles is expected to impact Canada's CO2 emissions significantly, hopefully slowing the effects of climate change. Road traffic is responsible for almost 25% of global CO2 emissions, so minimizing the number of combustion engines on Canadian roads can help make the planet safer for everyone.
And if batteries are charged from renewable energy sources, driving an electric vehicle (EV) can be completely carbon neutral.
Five major international car manufacturers operate in Canada: Fiat Chrysler, General Motors, Ford, Honda, and Toyota. This makes the automotive sector a considerable contributor to the nation's economy.
Workers contributing to assembly line manufacturing earn 30% more than the national average, making automotive franchises a great chance to help Canadian families thrive.
Franchising vs. Independent
Starting up as an independent business owner is challenging. You have to set up the infrastructure around which your business will sink or swim; you need to find a supplier and establish a supply chain; you employ and train a workforce; you cut through the existing competition, reaching out to establish a customer base.
Indeed, as a newcomer to any industry, there's a LOT to learn and many inevitable mistakes to make. This all makes your first few years of operation particularly perilous as you establish your business and try to recoup your initial investment.
And it’s for these reasons that almost half of all independent businesses go bankrupt within the first five years.
On the other hand, franchise companies begin their business journey with the support of an established partner who has worked through all the initial problems experienced by independent companies.
Automotive franchises don't just hand over the keys and let you sink or swim. They supply superlative training that provides expert status; you're invited into their established supply chain to benefit from the broader company's buying power. Then they continue to support you as you open your doors to the public with ongoing advice and guidance as your automotive franchise matures.
So, if you're looking to become your own boss while joining a new family that will continue to support and guide you through your business journey, consider investing in a Canadian automotive franchise with Franchise Direct.
Automotive Franchises in Canada
Check out Franchise Direct's amazing choice of excellent automotive franchises. And help Canadians get on the road.
Find your brand new start with Franchise Direct.