In India, how do you open a motorcycle dealership? Price to Earnings Ratio

A Two-Wheeler Dealership Profit Margin

In a market like India’s, a bike dealership company has long been a viable option. Indians may prefer two-wheelers because they’re more cost-effective, fuel-efficient, and ideal for Indian traffic. In addition, the country’s young have developed a kind of bike fetish. If you examine the Indian bike dealership industry, you’ll see that these businesses flourish in large cities and small villages and rural locations.

It gives us a lot of motivation to start a bike shop. However, like any other company, a bike dealership has its own rules and regulations. It’s still possible to create a company if you have the appropriate brand, the proper business model, and the right marketing strategy in place. We’ve gathered all the information you’ll need to find a bike dealership quickly and easily in one post. Then, let’s take a step-by-step look at each of these points.

How Lucrative is the Bike Dealership Industry in India?how to get a bike dealership in india? here's your a-to-z guide!

The two-wheeler market in India hit an all-time high in 2019 when India’s car sector sold roughly 21 million units. Indian two-wheelers sold at almost twice that of 2011 when we sold just 11.77 million units. India has become one of the largest two-wheeler marketplaces, with luxury motorcycles soaring seven-fold to 13,982 units between April and September 2019.

As a result, you can’t deny the potential of a bike dealership company or why it’s one of the most profitable enterprises in a country like India. With the introduction of new models with solid features and aesthetics, the bike industry is growing even faster than it already is.

In India, how do you open a motorcycle dealership?

How much does it cost to make a capital investment?

The amount of money you’ll need to start a bike dealership company is a concern. Typically, creating a firm like this requires a substantial financial outlay. Space and stock are the two most expensive aspects of the business. Every company has to cope with utilities and employee compensation costs, and a bike store is no exception.

The Application Process for Obtaining a Bike Dealership Franchise

To apply for a bike dealership on the official website of a bike manufacturing firm, you must first determine whether you can afford the charges. Let’s imagine you wish to own a Royal Enfield bike shop. The first step is to go to their official website and fill out the franchise or dealership registration application form.

You’d be required to provide information such as your name, email address, phone number, street location, dealership type, a funky city where the dealership is located, and so forth. The firm will contact you by phone or email when you complete the form with the correct information.

Choosing a Business Model That Fits Your Needs

Those in India who wish to open a bike shop may choose from two different business models:

  • Points earned by the dealer.
  • You’ll need a lot of money and a lot of space if you want to run a bike store that sells bikes and provides repair and maintenance services.
  • Licensed Dealerships and Service Facilities (ASSC)
  • You’ll still need two businesses, a showroom for selling and a workshop for maintenance, even if the investment is lower.

You may choose one of the two business models depending on your financial resources and the amount of space you have available. Remember that there is a minimum distance maintained by the bike companies between two retail locations. It’s important to know whether you can open your showroom in the area before you make a final decision.motorcycle dealership business plan model guide with cost & profit

Creating a Strategic Business Plan

The motorcycle dealership market is very organised, so this one shouldn’t demand a lot of your time and work. In reality, the bike manufacturer lets you know in and out of the infrastructure and vehicle lifting procedure at the time of franchise registration. Because of this, writing a company plan isn’t a hassle.

However, to create a marketing plan, you may need to put in all the time and effort you saved when developing the company strategy. You must execute strong brand recognition and sales marketing activities if you want to own a bike dealership. The opening discount is something that every firm does, but you may offer other programmes and perks from the outset.

Is it possible to determine the ideal location for a business?

The location of a company is one of the essential variables in its success, and a bike showroom is no exception. Some of the things to keep in mind while picking a place include:

  • There should be room for a large window at the front of the house
  • Furthermore, it should have a large, well-lit parking lot.
  • The selling counter, accessories, and insurance desk should all have their own designated areas in the store.
  • The bike manufacturing firm will advise you of the space requirements for whichever business plan you choose.

Registration and Licensing: Obtain a Trade License for Your Business.

You must register your bike dealership just like any other company. Ownership is OK if it’s only a modest counter. If you have ambitious ideas and want to raise capital from others, forming a partnership with Pvt. Ltd. or LLP is an option to explore.

To receive a Trade License from the Town Municipal Corporation Authority, you must first register your bike dealership company. If you don’t already have a bank account, you’ll need to create one and apply for a GSTIN to pay your company taxes.

Set up a Bike Showroom and Manage your dealership | application process & eligibility - indiafilings

In the site evaluation part, we addressed the front area, specialised selling points, financing, insurance, and accessories counters. It takes up around half of the entire carpet surface to display the motorcycles at the front of the shop. In addition, there should be more than two selling factors in the product.

It’s OK to have the interior of your choosing in the showroom but emphasise making it brighter. Lighting, flooring, and wall colour should all be given special consideration. According to the season, we should adjust the temperature of the air conditioning. We can’t forget about providing enough seating, including supportive seats.

In most circumstances, the motorbike manufacturer will offer you a software solution for keeping records and stock; if not, you may utilise a POS. When it comes to human resources, you should recruit well-versed people in dealing with consumer inquiries.

How to Promote Your Business by Effectively Endorsing a Motorcycle -Showroom

For the most part, there are two methods to market your company, online and offline, respectively. Digital platforms aren’t only for urban dwellers; rural Indians also utilise them for various functions, so you should take advantage of this to reach your target demographic. Go to the Internet! Set up a website and use different methods to drive traffic, such as search engines, social media, and other forms of paid advertising.

You may now advertise in local newspapers, radio stations, and television networks using offline methods. Even though rural residents have access to internet platforms, you may still organise a Bike Fair or a Bike Mela for them. We may use flyers and pamphlets as well. Don’t forget to make it simple for your consumers to pay.

Final Thoughts

Sales of motorcycles in India are rising at a double-digit pace, as previously mentioned. No question, now is the best moment to open a bike dealership. You can become a dealer and make a lot of money from several large motorcycle brands, such as Royal Enfield, Hero, Yamaha, Honda, and TVs. Follow the advice in this article and get the benefits of even a single dollar that you invest.

Article Proofread and Edited by Shreedatri Banerjee


Journalism student with a keen interest in Business world

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