Brazil is a country with enormous potential for automotive entrepreneurship, even when we are going through a deep crisis worsened by the pandemic. Even though 2021 was difficult, the automotive sector gained momentum, bringing optimism to the entire market.
So, what will be the opportunities for automotive entrepreneurship in 2022? To find out, keep reading!
Automotive market in 2022: what are the prospects
Last year was marked by several failures in the global supply chain. In this sense, practically no market was immune to the problems worsened by the virus.
In the automotive market, one of the most serious problems was caused by the shortage of inputs, especially semiconductors. In fact, it was for this reason that more than 14 factories were closed or stopped in 2021. Consequently, the price of vehicles went through the roof, even used ones that they even had more expensive prices than a 0 km.
These difficulties have not yet been overcome, so for much of 2022 it is expected that shortages in the supply chain will continue to put pressure on the automotive market.
Fear of public transport drives sales of used and used cars
The rise in prices for brand new vehicles, in addition to the lack of stock that generated a waiting list of up to months, people's immediacy boosted the demand for used and used cars.
In this sense, 2021 saw a growth of more than 47% in the sale of used vehicles. In practice, for every new vehicle purchased, on average, 3,1 used vehicles are traded. In fact, an unexpected event: there were used models more expensive than their zero-km equivalent model.
Furthermore, the fear of contamination by the virus on public transport also contributed to the search for own cars.
Fertile scenario for increased demand for auto centers
As a consequence of the previous topic, the demand for auto centers will tend to grow in the coming months and years. After all, pre-owned and used cars need maintenance sooner than a new vehicle.
The private purchasing process also attracts this need. For example, a person can sell their vehicle at a certain discount, as the new owner will need to fix an exhaust problem.
Furthermore, automotive centers need to innovate, moving away from the traditional model. For example, add STK services and products they make a difference when it comes to attracting a new audience and continuing to grow by offering exclusive services, high quality products and a strong brand.
Does automotive entrepreneurship make sense in the middle of a pandemic?
Opportunities for automotive entrepreneurship appear at all times. As already mentioned, this is a very propitious moment for the automotive performance sector, for example.
In the midst of the pandemic, and with the entire economic situation in the country, the Strike Brasil impresses with its numbers in 2021:
The reality is that undertaking something is always a very courageous action. However, it is not enough to have courage and determination, you also need planning.
With the growth in inflation and interest rates, the issue of financial planning before choosing for automotive entrepreneurship it's crucial.
Financial difficulties are the number one reason for a company to close its doors. According to SEBRAE, around 50% of entrepreneurs who went bankrupt in the first 5 years did not even know whether their businesses made a profit or a loss.
During the pandemic, the lack of financial control became even more worrying. As a result, more than 600 small businesses closed their doors, with the main difficulty being raising financial resources.
Faced with the challenges of starting from scratch, many entrepreneurs are opting for franchise model, which offers a safer plan when working with brands already established in the market.
What to evaluate before investing in this sector in 2022
Study the market
It may be your dream to own your own business, but desire and dedication alone are not always enough. Therefore, you also need to make the right choices and enter a market that has demand for your business.
Therefore, some of the aspects you need to understand before entering automotive entrepreneurship:
- Quantity of demand for your service;
- Competition already established;
- Costs to open the business;
- How does it work to manage a company in the chosen segment;
- Taxes and regulatory requirements in your region;
- Economic scenario of the market in the region;
- Established suppliers;
- Among others.
Get to know the public and study the services
Knowing how the automotive entrepreneurship market works and what its niche is, it is crucial to understand whether the audience you are trying to reach really needs what you want to offer.
In this sense, this means:
- Understand the needs of people in the region;
- If you are selling online to Brazil, who are the people who buy the type of product you are offering?
- What difficulties do these people face in solving their problems?
- Where do they look for this type of product/service? What are their personalities like? What do you like to do in your free time?
What this all means is building your persona. So, based on this x-ray of your audience, you can stand out and succeed in automotive entrepreneurship!
Therefore, in addition to knowing the clientele you are looking for, it is essential to know about the services and products to be offered. After all, quality must come first to ensure lasting success.
In this sense, seek technical knowledge, but also dedicate yourselffocus on management issues. The reality is that many first-time entrepreneurs end up forgetting the importance of good management, and that's exactly why they end up going bankrupt.
Automotive entrepreneurship opportunities in 2022
Despite the difficulties of the economic situation, there are several opportunities for automotive entrepreneurship in Brazil.
With greater difficulties in changing cars, people are deciding to stay with their current vehicles for longer. In this sense, there are many opportunities for the personalization and performance market.
In the case of work vehicles, many companies decide to focus on maintenance and get the most out of their current fleet. Therefore, services such as remap of trucks and agricultural machinery are one of the services increasingly sought after, with our remap Strike Brasil growing 72% in 2021.
While to stand out and gain space, focusing on building a strong brand and investing in digital experiences is more fundamental than ever.
The successes of automotive franchises
An alternative that is gaining more and more space in Brazil are franchises. When investing in a franchise Strike Brasil, for example, entrepreneurs take advantage of:
- A structured and consolidated business model;
- Greater security in return on investment;
- Professional support by the franchisee;
- Trainings;
- Partner network;
- Strong and established brand, facilitating customer acquisition;
- Control and quality systems;
- Advertising and publicity; and much more.
These and other advantages are why the franchise market grew 43% in the second quarter of 2021. No wonder there are already more than 50 automotive franchises Strike Brasil and in the middle of the pandemic, we grew the number of franchisees by 33%!
Want to know more about how the franchise works? Strike Brasil? Then, click here and learn about our investment models!
