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The Indian automotive industry has been on a rising trajectory in 2023. Between January to September, it has crossed the 3 million sales mark. Upon seeing the rapid rise of middle-class vehicle ownership, experts have speculated that the sales of automobiles will witness further growth in the years to come. 

Due to the millions of vehicles on Indian roads, a car washing business has always been an attractive line of work. As vehicle sales surpass all the previous records, there is little doubt that a car washing business is going to be a prosperous enterprise.   

If you are thinking of starting a business, a business plan is the most necessary component to have. Read on to find out how you can create a fool-proof car wash business plan and how you can get funding to set it up.

A Step-by-Step Guide to Starting a Car Wash Business

To create a robust car water wash business plan, here is a step-by-step guide you need to follow: 

1. Scout for a Perfect Location

The first step of your car wash business plan has to be finding and zeroing in on a good location to start your business. You must research the target area, assess the possible demand, and factor in the existing competition.

So, in terms of a car wash centre, a good location is where there is usually high traffic, like highways or near petrol pumps. You will also want to study the demographics of people who live and work in the area. Consider opening a centre in upper-middle-class urban residential areas. Another factor to consider is the existing car washes. If they get a high volume of cars, chances are the business is flourishing in the locality. That also means you could cut down on the wait times of the customers leading to greater satisfaction.

2. Make a Business Plan

A strong business plan helps you establish your car washing centre by bringing all the required information to the table. For it, you have to come up with a good name along with branding and marketing strategies. You will also need to figure out your income and expenses, the logistics of the operation, etc.    

Having the minutest details relating to your business can help you save additional costs and make the process of setting up quite easier. So, to run a business smoothly at any stage, having a robust business plan is a must. 

3. Getting All the Required Licences, Permits & Registrations

Before starting a business, you need to get certain licences, permits, and registration certificates from local authorities and government departments. This is the case with the car wash business as well.

So, when implementing your car wash business plan, take into account the kind of documentation you need to have for setting up a centre. For instance, the basic necessity for a car wash business is water. 

So, you may need to get a permit from the local water department to use water. Apart from this, you may also require the following licences, permits, and registrations to run a car wash business:

  • A business registration certificate from the urban local body (ULB)

  • Trade licence from the municipality corporation/council

  • Permit for waste disposal and treatment from the State Pollution Control Board Department

4. Competitor Analysis

Understanding the competitors will help you identify your own strengths and weaknesses. It is essential that your car wash business plan is backed by strong research about your competitors and the business practices they follow. Hence, when carrying out a competitor analysis, examine the following areas:

  • The location of the competitor’s centre

  • The services your competitor provides

  • Check if customers are satisfied with the services or if there is a need to expand services 

  • The pricing offered by them 


Pricing is an essential factor you must look into when creating your car water wash business plan. Assess your competitors’ prices and how much you can slash them to attract new customers.

This may translate into lower profits in the initial stages of your car wash business. However, as time progresses, you can increase the prices when you start gaining the trust of your customers, and they become regular clients. Figuring out the salary or wages paid to the employees by your competitors or the cost of leasing the car wash can also significantly help you decide on many important aspects of your own business. 

5. Source of Funding

Another important component of your car washing centre business plan is to determine the source of funding. In fact, it is one of the most important factors, as you cannot start any business without capital input.

However, if you chalk out the funding source in your car wash business plan during the initial stages, gaining access to it becomes much easier. Remember that you will need these funds at every juncture of your car wash business: 

  • To purchase or rent the land for the centre

  • To build car wash infrastructure 

  • To purchase equipment

  • To recruit the staff

  • To market your venture

6. Buying the Equipment

At the core of your car wash business will be the equipment required for the car wash process. So, when chalking out your car water wash business plan, create a list of equipment you will need. 

Here are some equipment you may require to start your car wash centre:

  • Automatic Car Washer

  • Portable Car Washer

  • Vacuum Cleaners

  • Water Tank

  • Consumables 

7. Hiring of Staff

An equally important part of your car wash business plan is to hire skilled and experienced staff. Depending on the size of your car wash business, you can choose the size of your team too.

However, among the team members, you need to hire at least one worker with technical expertise in dealing with vehicles. You may also need to hire a manager to oversee the finances and accounting of the business. 

8. Marketing the Business

A new business always needs a strong marketing strategy to garner new customers. So, make sure you outline a marketing strategy when creating a car water wash business plan. 

You can advertise your new business on different channels, including social media to inform customers about it. However, the marketing campaign must be backed by superior service quality to retain your new customers.

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FAQs for Car Wash Business Plan

How much space is required to start a car washing business?

It may depend on the size of the centre you may want to open, but the minimum requirement would be 4,000 to 5,000 square feet.


Is the car wash business in India profitable?

How well a business performs depends on many factors, but it is undeniable that the car wash business in India is generally profitable. Moreover, to keep your business on a profitability track, make sure to create a robust car wash business plan and follow it ardently.   

How much does it cost to start a carwash business in India?

It depends on the size of the car wash facility, but you may need to make an initial investment of ₹3.5 Lakhs or more.

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