Steps To Open A Two-Wheeler Showroom In India And Eligibility Criteria

From childhood almost all of us had a dream of buying a bike, some wanted to buy from their first salary, some of us got the bike as a gift through our family, or maybe someone like me got his father’s bike as the patriarchal thing. Bikes have always been a big part of our life and will always remain as they are one of the most popular automobiles. As we count on buying the thing for ourselves, a bike will top the list, and the other reason is the strictly hiking rates of fuels and constantly increasing traffic; they are also easier to drive. These reasons make a two-wheeler showroom business the most preferable and popular one.

Key Points To Start A Two Wheeler Dealership

To start a two-wheeler dealership , you need to invest a lot of money in the initial stage to rent the place and design it according to your need and the dealership you are taking off. Everything will matter in putting big money into the business. If you are plunging into this business, you need to know some of the critical points for this industry.

1. The Company:-

There are many Indian and foreign companies in India making bikes like Hero, TVS, Bajaj, Honda, Triumph, etc., and you need to decide which company you will choose to start your two-wheeler dealership. You can take any company’s dealership, but you need to know the products, at least all the models the company manufactures. Choosing a brand you will represent is an essential part of the process as you will get an idea of the vehicle price and range, and you can make your investment plan and decide the place according to it. The other reason for choosing the company is the site where you will open the dealership; you should know the company’s strengths. Which brands hold the most percentage of the market in your locality, and which brand will give you the profit so you can also expand your dealership.

2. Registration And Licence:-

To start owning an automobile dealership, you first need to register or make a request on the company’s official website. After that, the company will decide whether to give you the dealership or not. After that, the company officials will do one or a few meetings with all the partners of this new firm and will convey their message to them. The documentation process will take a few months, but meanwhile, you will have a lot of time for customising the space, or if you have not decided yet, you have a lot of time to choose a place.
To get a licence, you need to go to the municipal commission of the city and apply for a trader’s licence. After that, you must open a current bank account and apply for a GSTIN number as you must pay taxes for your business.

3. Place And Location:-

The location and place is the most critical aspect of the whole process. It would help to choose a place with all the necessities for a showroom. It should be well-lightened by natural light, proper ventilation, and enough space to stand all the vehicles. In addition, this place needs to have a different place for placing the bikes which are not on display. The place should have a proper space for vehicle parking in the front and a good front opening. It would be best to have a space parallel to the road; the risk of vehicles falling will decrease. Apart from that, you need to have a service centre either in the same building or the nearest place. It will make the work of getting a new vehicle ready very easy. The mechanic can come in a few seconds if the new bike is showing problems, or you can send the vehicle to the service centre if the customer wants to know about some of the further two-wheeler details.

4. Investment Process And Keeping Stocks:-

Getting the ideal investment price will depend on many factors, and still, you need to be on the positive side of the expenses as it can maximise anytime. The expenses will depend on how many bikes you want to order in the first consignment. If the average price of all the models is Rs. 60,000 and you want a total of 100 bikes, you will need to spend Rs. 60,00,000. Then the spare parts of the vehicles, which can cost you Rs.15,00,000, tools for the mechanics around Rs.50,000, and a minitruck to transport new bikes for canopy, will come under Rs. 5,00,000, like you, can buy a Tata Ace truck, the most preferred minitruck in the automobile dealership. Designing the place into a showroom, designing the workshop with a customer lounge, and all electronic devices will cost up to 40,00,000. You can rent a place to lower this expense, but turning a rough place into a showroom is a tough task.
Some of your money will also go into the promotional process; when all these things get a green signal, the only thing remaining will be the training of the employees.

5. Company’s Assistance:-

The company will provide banners for all the layouts and designs as they are standardised. The company will also give all these promotional kits on which you have to print your name. Training the employees is also the company’s responsibility; it is a good learning process for the sales team, and the technicians will need a long time to prepare. The sales team will learn the industry’s values, customer handling, demo, feature and fundamental technical aspects of every vehicle. The technicians will learn the standardised ways of repairing the vehicles, all two-wheelers of any company will look the same from the outside, but the process is different in every other machine.

As we know, the two-wheeler industry has been experiencing massive growth over the last Two-Wheeler years, and this is undoubtedly the best business you have to enter. So if you have the capital to invest or want to take a business loan for the vertical, it’s your choice. This industry has vast possibilities and can take you to new heights as an entrepreneur.

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