§1What this business is
A repair station for commercial vehicles with a service pit, tyre removers, wheel balancer, lathe, milling and welding. Work covers preventive servicing by kilometres run, breakdown repairs, engine and transmission work and rebuilding parts by welding or metal spraying.
Capacity: 600 jobs a year on LCVs, buses, trailers and heavy trucks, plus 500 jobs on vans, jeeps, SUVs and smaller vehicles.
§2Is it right for you?
Who it is for
A mechanic with heavy commercial-vehicle experience, as the report recommends.
Who it is not for
Someone without hands-on vehicle repair experience.
Advantages
- Trucks and buses need frequent repair
- Fleet tie-ups give regular work
- Can become an authorised service point for an OEM
- Parts carry about 10% margin on top of labour
Drawbacks
- Year 1 shows a small loss
- Needs a highway or transport-hub location
- Heavy, dirty and risky work
- Transporters often pay late
Skills you need
- Diesel engine and transmission repair
- Lathe, milling and welding work
- Diagnosis and preventive maintenance
- Dealing with fleet owners
Why difficulty 3/5: Needs deep mechanical skill and a good location.
§3Market
Who buys
- Transport operators and fleet owners
- Bus operators
- Owners of jeeps, vans and SUVs
How it sells
- Location on a highway or transport nagar
- Annual maintenance tie-ups with fleets
- OEM authorised-service tie-up
Good to know
- Repair bills in the report range from ₹1,500–10,000 for small vehicles and up to ₹30,000 for buses and trucks.
- The report expects more goods vehicles on the road after GST made inter-state transport easier.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Truck wheel tyre remover unit | 2 | ₹1,20,000 (₹60,000 each) |
| Wheel/rim balancing machine | 1 | ₹1,50,000 |
| Heavy-duty lathe, 6 ft bed | 1 | ₹75,000 |
| Electric arc welding machine | 1 | ₹80,000 |
| Gas welding machine | 1 | ₹60,000 |
| Metalising lathe and gun | 1 | ₹80,000 |
| Milling machine | 1 | ₹2,00,000 |
| Pillar drilling machine | 1 | ₹25,000 |
| Air compressor | 1 | ₹1,80,000 |
| Bench and belt grinders | 1 lot | ₹15,000 |
| Portable tools | 1 lot | ₹50,000 |
| Gauges and tools | 1 lot | ₹10,000 |
From: PMEGP sample project report — Vehicle Repair Shop (prepared by Udyami/Samadhan)
- Lubricants and greasecharged to the customer
- Welding consumables
- Spare parts, fasteners and clipsreplaced at cost plus a margin of about 10% or more
From: PMEGP sample project report — Vehicle Repair Shop (prepared by Udyami/Samadhan)
§5Licences & registration
- Udyam registration
- GST
- Shop/trade licence from the local body
- State Pollution Control Board consent (used oil and washing water)
- Fire NOC
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP allows service projects up to ₹20 L, so ₹16.93 L fits; MUDRA up to ₹20 L; CGTMSE for collateral-free credit.
§7Money
How the investment is worked out: Building ₹3.00 L + plant & machinery ₹10.45 L + fixtures and electrical ₹0.68 L + preliminary ₹0.25 L = ₹14.38 L fixed, plus ₹2.55 L margin on ₹4.63 L working capital = ₹16.93 L. Finance: promoter ₹6.14 L, bank loan ₹10.79 L.
Working capital: Working capital ₹4.63 L (inventory, receivables, overheads, creditors); promoter margin ₹2.55 L.
Year not printed on the report — check current machinery prices.
§8Export potential
A local service business; it has no goods to export.
§9Risks — where people fail
- Unpaid credit from transporters
- Workplace injuries
- Slow first year
- Freight slowdown cuts repair demand
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working commercial vehicle repair workshop unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Commercial Vehicle Repair Workshop?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.