Viral Bhayani
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Bajaj Auto Dealership is your answer if you are looking for a profitable franchise or dealership business from the number one selling two-wheeler company in India.
You are at the right place. As Bajaj Auto Ltd. is looking for dealer partners who can take up the growth challenge and help the company expand its reign.
Among two-wheeler companies and brands, Bajaj leads the foray. Certain models like Pulsar, Avenger and Discover are the most preferred bikes among youth and highest selling in India. Discover has made a record sale of whopping 10 lakh bikes in just 15 months of its launch. Bajaj Pulsar has been most awarded bike. Lately, Kawasaki Ninja has been launched which is said to be a revolution in 250 cc bikes. With a fascination towards bike and easy financing, Bajaj auto dealership is a profitable business for sure.
The initial investment for setting up Bajaj auto dealership is about ₹40 to 50 lakhs for interiors, spare parts. Moreover, if one month sale is expected to be of about 200 motorcycles then ₹ 50000 Multiples of a number of vehicles is required as Operating costs. E.g. in one month expected sale is of 200 bikes, so the Operating cost for that month will come out to be about ₹1 Cr. Thus for a Bajaj Two-wheeler dealer, who expects to sell about 200 bikes in a month will have to start with a cost of about 1.3 to 1.4 crores.
Also read, Profitable Retail Franchise
The floor area required for Bajaj Two wheeler dealership should be around 2000 to 3000 sq ft or more and the site should be distant from existing dealer to avoid cross-selling. The Company will support in providing training to staffs, sales team regarding features of product and sales process. The Company will also support by providing layouts, designs, interiors as per Bajaj auto dealership Corporate norms.
The return on investment (ROI) is expected to be 18% to 24% per annum including Vehicle Sales, Workshop revenue and Spare Parts.
Dealerships run on 3S concept & have these 3 functions in them
Sales – least margin
Service – the highest margin
Spares – depends on the brand
You will need following kind of setup
Sales:
Sales Coordinator
Leaders in Sales
Sales Manager & Corporate Manager (Sometimes both roles are handled by a single person)
GM Sales (only if the setup is huge)
SERVICE
BODYSHOP
SPARES: margin varies from 10% to 100% anyway most lucrative, if you are an authorized dealer.
Stores Incharge
Stores Manager
Admin & Housekeeping staff etc.
-Vehicle stock – Equivalent to one month’s sale
-Spare parts – Rs.15 Lacs to Rs.20 Lacs
Working capital from bank or own funds:
Indicated monthly sale potential X Rs.50,000. For example, if the indicated monthly sale potential is 200 vehicles per month, then the working capital required will be 200 X Rs.50,000 = Rs.100 Lacs + Spare Parts
Bank guarantee:
Bank guarantee is required from any Nationalized bank as per company's guidelines.
Company will provide manpower training
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