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Bajaj two wheeler dealership franchise in India

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Are you in search for a franchise or dealership business for number one selling two wheelers Bajaj in India. Here is the detail information about total investment, start up cost and requirements and other criteria and procedure to start dealership of Bajaj Two Wheelers in India.

Why to start Bajaj two wheeler dealership franchise in India

Among two wheelers Bajaj is still the leader. Its model Pulsar and Discover are best preferred bike and highest selling in India. Discover made a new record sale of 10 lakhs bikes in just 15 months. Bajaj Pulsar has been most awarded bike and overall a record turnover of 2909 crores in last quarter with record profit of 403 crores. Recently 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 two wheeler dealership is a profitable business for sure.

Investment, start up cost, requirements and expected profit for starting franchise or dealership of Bajaj two wheelers

The initial investment for starting Bajaj two wheelers dealership is about 40 to 50 lakhs for interiors, spare parts plus if one month sale is expected to be of about 200 motor cycles then 45000 Rs in one month product that is 200 which comes out to be about 90 lakhs. 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. There is no other deposits taken from the Company. 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 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 – highest margin
Spares – depends on brand

You must have noticed in your service bill, for every part they replace they will charge for fitiing/labor charges & the MRP of the item (& taxes). If you source the same part from outside market (legal purchase with bill) they will cost you much lesser.

Even silly things are pretty costly, eg: my 800 wheel hub caps cost over 50 at the MASS & the same item costed me 32rs. with bill outside. Floor caps (those rubber gaps on the floor) costed me 50rupees, the same at showroom costs much more.

The dealership runs on Margins, max margin is in service (labour charges), if your dealership (lets say MASS kind of setup) gets more customers for body work etc you are sure to see good margins.

Dealerships get good margins on ICE & similar accesories sold. They also have tie ups with major distributors/ companies directly for bulk purchase.

Dealerships make a lot of money during some months of the year (say december) & some other months they will not have much work.

Dealers also sometimes get troubled with some major “Callbacks” – too many customers coming to the service center for simple part replacement.

Coming to HR,
You will need this kind of setup
Sales:
Drivers – Test Drive cars – Sometimes customers & the Sales Consultant both dont know driving & they need a test drive.
Sales Coordinator
CRE – Customer Relationship Executive
Sales Consultant – Showroom Sales, Field Sales, Corporate Sales
TL Sales
Sales Manager & Corporate Manager (Sometimes both roles are handled by a single person)
GM Sales (only if the setup is huge)

SERVICE
Technician
Supervisor
Workshop/ Floor Manager
Service Advisor
Service Manager
GM Service (again only if setup is big – multiple service centers etc)

BODYSHOP
Technicians
Denters & Painters (not on rolls of company – usually through a contractor)
Service Advisor (trained for Bodyshop specifically)
Bodyshop Incharge/ Manager

SPARES: margin vary from 10% to 100% anyway most lucrative,if you are an authorized dealer.
Stores Incharge
Stores Manager (very rare, atleast in my clients case)

Admin & Housekeeping staff etc etc.

One of the biggest running costs in a dealership is the salary of all employees.

Hope above information was helpful to you.

Your profit depends more on how many cars you service per day & less on how many you sell. However your future profits are coming from the sales you make today,as some customers usually feel comfortable with the place where they bought the car than any other.

How to apply for Bajaj Two wheelers franchise (dealership / showroom / service center)?

One can apply for dealership of Bajaj Auto (two wheelers or three wheelers) online by filling the online form available here http://www.bajajauto.com/dealerLocaterForm.asp. After giving all the details you can submit the form online. If your application for Bajaj dealership is accepted you will be contacted. For any query you can contact regional office of Bajaj Auto. Detail address is given at http://www.bajajauto.com/dealerContact.asp

 

Ref :

http://www.startingfranchise.in/2013/08/Bajaj-two-wheelers-dealership-franchise-cost-investment-profit.html

 

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4 comments

  • Ramprakash T S

    hello sir, is it required the applicant should have a previous business experience or bike related experience for applying for bajaj franchise?
    thank you

    Reply
    • Prashant Pandya

      Hi Ramprakash, To the best of my belief no.However, its my assumption only.Better you contact the authorized person of the company and ask him same question.But its my suggestion that please take some experience before jumping to any venture.”Don’t aim in dark”

      GOD Bless You,

      Prashant Pandya

      Reply
  • Kunal Rathod

    My Question is
    1 – can I apply for two wheeler showroom Service franchise with loan …?
    If yes …..
    How much cost and how to apply for govt loan …for this proposal…

    2 – how to join make in India & start-up India…for get loan for open new business…?

    My profile
    I am graduate person and I have 4 year two wheeler service related experience in garage..
    And now I’m interested for open my own business..

    Please tell me about this query..

    Reply
  • Seepu singh

    I want to open bajaj showroom in haridwar.. Please reply me as soon as possible on 9818535569

    Reply

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