§1What this business is

An electric horn has a steel diaphragm pulled by an electromagnet and pushed back by a spring; contact points break the current hundreds of times a second to make the sound, which a spiral 'snail' shape amplifies. The unit presses housings, diaphragms, tone discs and brackets from sheet metal, degreases and zinc-phosphates them, powder-coats and oven-cures them at 220 °C, winds the coils, and assembles and tests each horn.

§2Is it right for you?

Who it is for

Someone from the auto-parts trade or a press-shop background with aftermarket dealer contacts.

Who it is not for

Someone without engineering or quality-control experience.

Advantages

  • Every vehicle needs a horn, and replacements are frequent
  • Large two-wheeler and car aftermarket
  • Press and coil skills can serve other auto parts
  • Plan runs at only 30–50% use, leaving room to grow

Drawbacks

  • Big auto-component makers supply vehicle makers directly
  • Needs precise diaphragms and tone discs
  • Vehicle-part quality and noise rules apply
  • Machinery cost is high for the size (₹18 L)

Skills you need

  • Press-tool work
  • Coil winding
  • Powder coating
  • Selling to auto-parts dealers

Why difficulty 3/5: Needs press, coil and coating skills plus an aftermarket sales network.

§3Market

Who buys

  • Owners of two-wheelers, cars, buses and other vehicles (replacement)
  • Vehicle and bicycle makers

How it sells

  • Auto-parts dealers and workshops
  • Supply to vehicle makers

Good to know

  • Typical car horns are about 107–109 decibels and draw 5–6 amperes (report).
  • Horns are legally required on motor vehicles in many countries (report).

§4Raw material & machinery

ItemQtyCost
Hydraulic press1₹2.00 lakh
NC milling machine1₹4.00 lakh
Drill machine1₹1.50 lakh
Spot welding transformer1₹2.00 lakh
Riveting machine1₹1.00 lakh
Coil winding machine1₹2.00 lakh
Universal grinding machine1₹1.50 lakh
Arc welding machine1₹2.00 lakh
Paint gun1₹70,000

From: PMEGP sample project report — Electric Horns (prepared by Udyami/Samadhan)

  • Die-cast horn bodiesnamed in the report; raw material ₹45.00 L in year 1
  • Diaphragm steel sheet (spring steel)for diaphragm, tone disc, housing and bracket
  • Enamelled copper wirefor the coil
  • Contact pointsbreak the current to make the sound

From: PMEGP sample project report — Electric Horns (prepared by Udyami/Samadhan)

§5Licences & registration

  1. Udyam
  2. GST
  3. Fire safety and State Pollution Control Board NOC (paint shop)
  4. Trade licence
  5. BIS certification (listed in the report)
  6. Trademark for the brand if required

We can do this registration for you

§6Schemes & subsidies

PMEGP, MUDRA and CGTMSE fit the ₹23.24 L project; Stand-Up India for SC/ST/women founders.

§7Money

How the investment is worked out: Samadhan report: plant & machinery ₹18.00 L + other assets ₹1.00 L + working capital ₹4.24 L = ₹23.24 L; land and building rented, not costed.

Working capital: Working capital ₹4.24 L (bank ₹3.82 L).

Year not printed on the sample report — check current machinery prices.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

8512.30Sound signalling equipment of a kind used for cycles or motor vehicles

Export council / board: EEPC India

  • HS codes are from the WCO HS 2022 list; confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
  • You need an Import Export Code (IEC) from DGFT before the first shipment.

§9Risks — where people fail

  • Quality failures and returns
  • Steel and copper price rises
  • Competition from branded and imported horns
  • Changing vehicle-noise rules

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working electric horn making unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Udyam, GST), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

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 Electric Horn Making?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Electric Horns (prepared by Udyami/Samadhan)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.