§1What this business is

A spark plug has a steel shell, a ceramic insulator and electrodes; it fires the air-fuel mix in a petrol engine. The report's unit extrudes and machines the shell, rolls threads, presses, grinds and welds the electrode, and assembles 500 plugs a day. Buyers are the vehicle aftermarket and, after approvals, engine makers.

Capacity: 500 spark plugs a day (10-hour shift); 30% use in year 1.

§2Is it right for you?

Who it is for

A machinist or auto-parts trader with aftermarket distribution.

Who it is not for

Someone without precision-machining experience.

Advantages

  • Every petrol vehicle needs spark plugs replaced
  • Large two-wheeler aftermarket in India
  • Break-even only 25% in the report
  • Machining skills transfer to other auto parts

Drawbacks

  • Big brands dominate; buyers trust names
  • Electric vehicles will shrink demand over time
  • Heavy power load (50 HP)
  • Ceramic insulator quality is hard to control in a small unit

Skills you need

  • Precision machining and threading
  • Induction welding
  • Spark and leak testing
  • Auto-parts distribution

Why difficulty 4/5: Precision work, brand-led market and a long-term EV threat.

§3Market

Who buys

  • Two-wheeler and car owners (replacement)
  • Mechanics and service centres
  • Makers of small engines and gensets

How it sells

  • Auto-parts wholesalers and retailers
  • Garages and service centres
  • OEM supply after approval

Good to know

  • The report quotes the global spark plug market at USD 6.5 billion by 2025, growing about 5% a year.

§4Raw material & machinery

ItemQtyCost
Extrusion press1₹7,00,000
Centre lathe1₹2,00,000
Threading machine1₹75,000
Wire rolling machine1₹1,00,000
Grinding machine1₹2,00,000
Induction welding machine1₹4,50,000
Pillar drilling machine1₹75,000
Other equipment and toolsLS₹50,000

From: PMEGP sample project report — Spark Plug (prepared by Udyami/Samadhan)

  • Steel (for the shell)raw material ₹36.00 L in year 1 (report)
  • Aluminium oxide ceramic (insulator)insulates the centre electrode
  • Nickel-copper alloys and nickel alloy steel (electrodes)for heat-resistant electrodes

From: PMEGP sample project report — Spark Plug (prepared by Udyami/Samadhan)

§5Licences & registration

  1. Udyam registration
  2. GST registration
  3. State Pollution Control Board consent to establish and operate
  4. Vendor approval and quality certification (such as IATF 16949) if you supply vehicle makers

We can do this registration for you

§6Schemes & subsidies

PMEGP (the report is a PMEGP sample), CGTMSE and Stand-Up India for SC/ST or women founders. Above MUDRA's ₹20 lakh limit.

§7Money

How the investment is worked out: Samadhan report: plant & machinery ₹18.50 L, furniture ₹0.50 L, working capital ₹3.82 L = ₹22.82 L (term loan ₹17.10 L, working capital ₹3.44 L, own money ₹2.28 L); land own or rented.

Working capital: Working capital ₹3.82 L (bank ₹3.44 L); 10 days of stock, 12 days' credit to buyers.

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

How to prepare a loan file

§8Export potential

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

8511.10Sparking plugs

Export council / board: EEPC India

  • Get an Import Export Code (IEC) from DGFT before exporting.

§9Risks — where people fail

  • Quality failures damaging engines and reputation
  • Shift to electric vehicles
  • Fake or cheap competition
  • Nickel alloy price rises

§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 spark plug manufacturing 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 registration, GST registration), 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 Spark Plug Manufacturing?

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

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Spark Plug (prepared by Udyami/Samadhan)

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