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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. bajaj auto dealership

Highlights

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.

Initial Costs

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

Manpower Requirements at Bajaj Auto Dealership

You will need following kind of setup
Sales:
Sales Coordinator

  • CRE – Customer Relationship Executive
  • Sales Consultant – Showroom Sales, Field Sales, Corporate Sales

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

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

BODYSHOP

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

SPARES: margin varies from 10% to 100% anyway most lucrative, if you are an authorized dealer.
Stores Incharge
Stores Manager

Admin & Housekeeping staff etc.

Q How much deposit is to be paid to the company?

Bajaj Auto does not take any deposit from the dealer.

Q How many days’ credit is given for vehicle stock by the company?

Bajaj Auto will send the vehicle only on advance payment. Credit is not given by the company.

Q What is the dealer’s order policy? Will the company supply vehicles without order?

Company will supply vehicles as per dealer’s order only.

Q What is the period of dealership agreement with the company?

Dealership agreement with the company is renewable after every two years.

Q What will be the area of operations for the dealership?

Distinct area of operation will be given to the dealership for sales and service related activities. This is called as command area. Cross selling in other dealer’s area is not allowed.

Q What is the investment required to start new dealership?

Other than land and building, dealer will be required to invest as per the following details :
-Interior (showroom & workshop equipments) – Rs. 25 Lacs to Rs.30 Lacs
-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.

Q What is the return on investment for bajaj dealership?

Return on investment for bajaj dealership is estimated in the range of 18% to 24% per annum (Vehicle Sales, Workshop revenue & Spare Parts)

Q What support will be given by the company to new dealership?

Company will provide all layouts, drawings and interior designs for showroom and workshop which will be as per bajaj dealership corporate identity norms.

Company will provide manpower training

  • Training will be provided to workshop technical staff.

  • Training to the sales team will be provided on product features, customer handling & sales process.

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  • Price Range ₹40 L - ₹2 Cr.
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