In recent years, India has witnessed rapid growth in the automobile industry. With increasing demand for both personal and commercial vehicles, especially two-wheelers and small cars, aspiring entrepreneurs have a golden opportunity to tap into this booming market. If you are planning to start a small business by purchasing a bike or a car and eventually converting it into a self-employment opportunity, this guide will help you understand the roadmap to success—along with information on government schemes that can support you with up to ₹1.5 lakh in assistance.
Business Idea: Car or Bike-Based Self-Employment
This business plan revolves around the purchase of a two-wheeler or four-wheeler (depending on your budget and location) and using it for generating income. Here are a few ideas for how one can earn using a vehicle:
1. Bike-Based Business Ideas
- Food or grocery delivery (via Zomato, Swiggy, Dunzo, Blinkit, etc.)
- Courier service or e-commerce deliveries
- Bike taxi service (Rapido or Ola Bike)
- Rental services for tourists
2. Car-Based Business Ideas
- Cab service (Uber, Ola)
- Rental or self-drive car service
- Tourist taxi for local and outstation trips
- School van service or staff pickup & drop
- Package delivery for logistics companies
This business plan works best for individuals in urban or semi-urban areas, but rural opportunities are also growing fast, especially with improved roads and connectivity.
Step-by-Step Business Plan
Here’s a simple yet effective plan to start your own car/bike purchase-based business.
Step 1: Decide the Business Model
Choose how you want to use the vehicle. For example:
- Daily food delivery on a bike
- Ola cab service with a car
- Bike taxi for students and office-goers
Step 2: Market Research
Study your local area:
- Are there already too many delivery agents or cabs?
- Is there a need for a new service?
- What are people struggling with? (E.g., lack of reliable transport)
Step 3: Financial Planning
Expenses:
- Vehicle cost: ₹80,000–₹1,20,000 for a bike; ₹4–₹7 lakh for a car
- Insurance and registration
- Fuel and maintenance
- EMI (if bought on loan)
Income:
- Daily earnings can range from ₹500–₹1500 depending on the work
- Monthly earnings after fuel and EMI can still be ₹15,000–₹25,000
Step 4: Funding Options
This is where government schemes like the PMEGP, Stand-Up India, and Mudra Yojana come in handy. Many of these schemes offer loans and subsidies up to ₹1.5 lakh or more.
Government Schemes Offering Up to ₹1.5 Lakh Support
The Indian government has launched several schemes to support self-employment and small businesses. These include loans and subsidies that can help you buy your first car or bike for business.
1. Pradhan Mantri Mudra Yojana (PMMY)
- Offers loans up to ₹10 lakh to non-corporate, non-farm small businesses.
- Shishu category is perfect for beginners – loans up to ₹50,000.
- Kishore – loans from ₹50,001 to ₹5 lakh.
- Tarun – loans from ₹5 to ₹10 lakh.
- Interest rates: Around 8–12%, no collateral needed.
- Repayment tenure: 3–5 years.
- Can be used to buy a bike or car for commercial use.
2. Pradhan Mantri Employment Generation Programme (PMEGP)
- Provides subsidy up to 35% for business setup.
- Maximum subsidy: ₹1.5 lakh for general category in urban areas and ₹2 lakh in rural.
- Applicant should be 18+ and have at least 8th-grade education.
- Can be used to buy a commercial vehicle for self-employment.
3. Stand-Up India Scheme
- Designed to support SC/ST and women entrepreneurs.
- Loans range from ₹10 lakh to ₹1 crore.
- While this is more useful for larger ventures, it’s worth exploring if you plan to scale your vehicle fleet.
4. State Government Subsidies
- Many states (like Maharashtra, Gujarat, Tamil Nadu) offer subsidies or interest-free loans for self-employment.
- For example, Maharashtra Unemployed Youth Scheme gives up to ₹1.5 lakh assistance for vehicle-based businesses.
Steps to Apply for Government Assistance
- Prepare a Business Plan
- Clearly define how you’ll use the vehicle.
- Include cost breakdown, income projection, and repayment plan.
- Choose a Scheme
- Based on your profile (category, gender, location), select the most suitable scheme.
- Apply Online or via Bank
- Visit https://www.mudra.org.in/ for Mudra Yojana.
- Visit https://www.kviconline.gov.in for PMEGP.
- For Stand-Up India, apply via https://www.standupmitra.in
- Documentation Needed
- Aadhar card, PAN, address proof
- Caste or category certificate (if applicable)
- Business plan/project report
- Bank account details
- Quotation for vehicle
Advantages of Starting This Business
- Low Investment, High Return: Bikes and entry-level cars are affordable and can start generating income within days.
- Flexible Hours: You can work full-time or part-time.
- Growing Demand: E-commerce, tourism, and local transport are all on the rise.
- Government Support: Subsidies, loans, and minimal paperwork encourage young entrepreneurs.
Challenges to Consider
- Rising fuel costs can impact profits.
- Initial months may be slow as you build clients or ratings.
- Vehicle maintenance and EMI must be managed carefully.
- Competition in cities can be tough – focus on better service or niche markets.
Conclusion
Starting a car or bike-based business is a smart move in today’s fast-moving economy. With opportunities in delivery, transport, and rentals, even a single vehicle can create a stable income source. What’s more, government support of up to ₹1.5 lakh through schemes like PMEGP and Mudra Yojana makes it easier for new entrepreneurs to get started.
If you have the drive to work hard and manage your resources well, this simple business model can be your first step towards becoming a successful self-employed individual—or even growing into a fleet owner in the future.
