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In recent years, India has witnessed increased number of vehicles on the roads. Also, post the COVID-19 pandemic, due to the fear of the contracting virus, people have realized the dire need of owning a personal vehicle and avoiding shared mobility. This has substantially given rise to auto-service demand across the country. The car services and repairs market in India is expected to reach US$25 billion by 2030.

Majority of the auto-service sector in India is unorganized and lagging in terms of skilled workforce and technology. Even branded workshops are charging exorbitantly for repairing, denting, painting and other services. These predicaments are paving the way to the growth of full-stack mobility startups, which are offering both B2B and B2C service on affordable rates. Most mobility startups are enabled with modern technology and are reliable, transparent and convenient according to the needs and requirements of customers.

While emerging players are accelerating to dominate the market, the road ahead remains bumpy, as assembling companies for the mobility of tomorrow also means sustaining and maintaining it to the current resistive market. Here are some key challenges new players in the market for full-stack mobility will face.

Market Competition

The demand for mobility startups is increasing because of the scarcity of quality auto-service centers in the country. However, post-pandemic years in the auto-service and mobility industry are characterized as the period of the intensifying ‘double mobility transformation’ with major players operating in an economic recession and at the same time, rethinking their business models in a time of heightened city regulation, technology disruptions, and changing consumer needs. For the new players accommodating to such changes is certainly going to test their mettle.

Skilled Workforce

The existing players in the mobility startups have a team of professionals and dedicated technicians on the product with best-in-class tools who deliver quality service upfront which includes car repairing, denting and painting, car battery and tyre replacement, and more. By providing top-notch service, existing players haven’t only created a brand image but also catered to millions of clients who are now their regular customers.

The challenge for the new players in the market will not only be to employ experienced skilled workers but to maintain the quality of service at the affordable rates fixed by the existing competitors. Also, existing startups who have dominated the market have already upped efforts to retain their skilled workers by offering attractive growth prospects.


In the current times, given the disruption mobility industry has undergone, starting a full-stack mobility company is not going to be an easy task and will require hard work, dedication, and most importantly right funding. Funding is crucial when it comes to expanding and marking footprints in multiple cities; to ramp up the infrastructure and acquiring advanced technological gadgets.71% of businesses fail within 10 years and funding determines how far a new venture will reach in the race.

To summarize, it can be stated that the automotive industry is undergoing a radical upheaval. To be in the driver seat, the entry players in mobility startups need to gear up for the waves of uncertainty in the industry. Also, new strategies with new offerings are necessary to stay relevant in the market.

Mridu Mahendra Das

Guest contributor Mridu Mahendra Das is the Co-founder and CEO of Automovill, a Bengaluru headquartered startup that connects car holders and technicians with the entire system of automobile service. Any opinions expressed in this article are strictly that of the author.


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