Investment and economic viability of an automotive workshop in Navojoa, Sonora

Abstract

The vehicle repair and maintenance industry has driven the specialization of services, necessitating strategic investments in workshops to enhance productivity and competitiveness, ensuring alignment with current market demands. This study aimed to evaluate the feasibility and advisability of investing in an automotive mechanical workshop. A non-experimental, descriptive, and cross-sectional quantitative research design was employed, utilizing the project evaluation methodology. Data collection involved administering a structured questionnaire to a statistically determined sample of 384 vehicle owners for the market analysis. Additionally, technical, legal, and administrative aspects were assessed through an on-site evaluation and an in-depth interview with the workshop owner. The financial viability was analyzed using Microsoft Excel 2013 to compute key metrics. The findings reveal a significant unmet demand in the sector. Furthermore, the investment proposal was deemed technically and legally feasible, with financial indicators demonstrating robustness. The project yielded a Net Present Value (NPV) of $549,939 and an Internal Rate of Return (IRR) of 27.9%, surpassing the established discount rate of 17%. Consequently, the study concludes that proceeding with the proposed investment is economically and strategically advisable.