An auto parts business opportunity has landed in my lap and I need advice

[Karnak]

I am looking for any advice that the hivemind here could offer as relating to a business opportunity that has landed in my lap. I have a tech industry background, not a manufacturing one, and am out of my depth here, but really want to grab this chance to get out of the grind of working for others.

Basically the gist is that I have contacts in India who manufacture auto parts for Tata and Maruti and want to enter the US market. Further they are willing to fund pretty much the entire project. My role would be to supply the part specifications and make sales. I am thinking that auto parts stores would be the target as I can only imagine that it would be extremely difficult for a new guy to get into Ford or Toyota's supply chain. They know other companies in India who already do this so it is not an impossible goal. The initial goal is to get samples made so that we have something to show to potential customers. For that I would need the specifications for a selected part.

If anybody has any suggestions on what steps I need to be taking please have at. If you have questions that I need to answer before you can supply suggestions, also have at.

I am very excited about this and want to see it succeed.

Thank you.

(If this is not an appropriate post, my apologies and have at with the locking, Skuzzy)

[SmokinLoon]

I am looking for any advice that the hivemind here could offer as relating to a business opportunity that has landed in my lap. I have a tech industry background, not a manufacturing one, and am out of my depth here, but really want to grab this chance to get out of the grind of working for others.

Basically the gist is that I have contacts in India who manufacture auto parts for Tata and Maruti and want to enter the US market. Further they are willing to fund pretty much the entire project. My role would be to supply the part specifications and make sales. I am thinking that auto parts stores would be the target as I can only imagine that it would be extremely difficult for a new guy to get into Ford or Toyota's supply chain. They know other companies in India who already do this so it is not an impossible goal. The initial goal is to get samples made so that we have something to show to potential customers. For that I would need the specifications for a selected part.

If anybody has any suggestions on what steps I need to be taking please have at. If you have questions that I need to answer before you can supply suggestions, also have at.

I am very excited about this and want to see it succeed.

Thank you.

(If this is not an appropriate post, my apologies and have at with the locking, Skuzzy)

As far as contacts go, I'd be hitting up shops that actually do the work on truck equipment.  Shops that build dump truck bodies, service bodies, flat beds, etc.  There needs to be more competition in that field for hinges, rails, cylinders, hoses, electric motors, rubber seals, etc.  I'm not sure exactly which part of the automotive parts spectrum you're looking for, but was a salesman for about 6 mos as a side job and went around to city, county, and state sheds offering truck equipment for sale.  Something always has to be repairs or be fixed. 

I'd check with those shops first to see if there is a way for you to work with them and get the parts they need to sell at a lower price.  We're not talking about nuts and bolts, we're talking about items that start at $200 and go upwards of $10,000.   

[Rob52240]

Smokinloon has a good point.  While autoparts stores are nearly always part of a national chain (arnolds, Napa, Autozone, O'Reilly etc..) I have never seen two truck parts shops with the same name.  I used to work for Johnson Controls who is the largest automotive manufacturer in North America.
Automotive accessories might be an easier market to enter.

[ebfd11]

Are those the type of cars they will be selling?? Because I have never heard of those types. But looking at the website it seems the build the Daewoo busses.  Is this correct? The thing you mihht want to do ois contact an investment lawyer and see what they have to offer.. because I don't see a market yet.. but that's my 2 cents. I hope everything works out and you prosper.
LawnDart

[Karnak]

No, they make parts for Tata and Maruti in India.  They want to make parts for American vehicles (Ford/GM/Chevy/Toyota/Honda) and they have competitors who already do.

As far as the types of parts they make, cast, tempered and finished steel and aluminum parts.

[Hajo]

No, they make parts for Tata and Maruti in India.  They want to make parts for American vehicles (Ford/GM/Chevy/Toyota/Honda) and they have competitors who already do.

As far as the types of parts they make, cast, tempered and finished steel and aluminum parts.

That is going to be a very hard market to crack in the US.  China now has the biggest share of that market in the US for the majority of remanufactured and OEM parts.

[Meatwad]

That is going to be a very hard market to crack in the US.  China now has the biggest share of that market in the US for the majority of remanufactured and OEM parts.

I am pretty sure if given the chance, there will be a lot of home car tinkers that would rather have quality parts then the cheap cast chinese garbage that is sold here now

[Shamus]

I am pretty sure if given the chance, there will be a lot of home car tinkers that would rather have quality parts then the cheap cast chinese garbage that is sold here now

If my support line experience is any indication I'm not confident that India is going to produce castings of a higher quality than China.

shamus

[MrRiplEy[H]]

Start your own online shop for the parts and market them. If the quality is shoddy you'll go bankrupt and probably face a few lawsuits but hey, that's business.

[Karnak]

If my support line experience is any indication I'm not confident that India is going to produce castings of a higher quality than China.

shamus

Well, I have, from a Tata engineer, a recounting of a conversation he had with a Boeing exec wherein she told him that if she'd come to India first Boeing never would have gone into China at all.

Qualitywise, I think both India and China are quite capable of producing high quality goods, but like anywhere you'll have to pay for them.

[DaveBB]

On a relatively recent project, I tested castings from : Vietnam, Malaysia, The Philippines, and India.  I (we) tested thousands of castings from different foundaries from these countries for a very large air compressor manufacturer.  They were all sub-par and had a high percentage of cracks, even those claiming to have been tested at the manufacturer.  I don't recall testing many from China.  I would certainly remember if they were full of cracks.

[spammer]

I'd hang it up and not think about it anymore. If you do want to persue this endeavor? Write up a business plan outlaying all projected costs. Estimate high and come in low.

Been here and have done this. I wish you luck.

[Nwbie]

No. 1-  will insurance companies approve those parts for repairs, that is the industry bellwether.

2. Auto parts supply chains - will they get approved - not your local auto parts chain stores - there is a whole level of auto parts suppliers that are not on everyone's radar, you need to get on their approved lists. Go to as many body and fender shops in your area and ask if they could provide you with their "suppliers contacts". Then you will need to grunt through their list.

3. Accept resistance to change will be the norm, even if you have a better price-maybe even a better product, you are still an unknown and will only be as good as your last sale until you have built a reputation as having a reliable supply chain program.

I found most of the people in the automotive repair industry to be good hard working people who have little time for conversation, the profits are tight, so just to get them to spend a few minutes of time with you is going to be half the battle. I spent many years in selling to a lot of automotive parts re sellers and used car market. It is a tough industry to get in the door, but once you do - remember how tough it was for you, there is always someone behind you trying to do the same thing.
Good luck

NwBie

[Dragon]

I could help with some marketing. 


Put in a word to Tata that I need an F-Type and I will put some stickers on it and drive around Ohio smiling and waving at everyone I see.