How to Get Hero MotoCorp Dealership 2023-Cost & Profit Margin

How to Get Hero MotoCorp Dealership 2023-Cost & Profit Margin

Are you Passionate about the automotive industry and dream of running your own successful business? Then you can consider starting Hero MotoCorp Dealership. Hero MotoCorp is an established and trusted brand in two-wheeler manufacturing and it provides an opportunity for aspiring entrepreneurs to take Hero MotoCorp dealership to join its Business.

In this blog, we will know How to Get Hero MotoCorp Dealership, along with this, we will also know how much total investment will be required for this business, what will be the profit margin and what will be the risk in it, so let’s start from the beginning.

Overview of Hero MotoCorp Dealership

How to Get Hero MotoCorp Dealership 2023-Cost & Profit Margin

Hero MotoCorp Limited (formerly Hero Honda) is an Indian multinational company founded in 1984 by Brijmohan Lall Munjal. This company manufactures bikes and scooters. Talking about Hero MotoCorp, it is the world’s largest two-wheeler manufacturing company.

Hero MotoCorp has a 46% market share in the two-wheeler industry in India. Two-Wheelers sold by Hero MotoCorp is more than the total sold by second, third, and fourth. If we talk about 2019, then 78 lakh two-wheelers were sold, which makes it the world’s largest two-wheeler selling company, if I talk about September 2018, then 7,69,000 two-wheelers were sold by them, which in itself has a record.

Hero MotoCorp currently produces over 100 million units, making it the first automobile brand in India to achieve this feat. Hero MotoCorp has a sales and service network with over 9000 dealerships and service points across India. If we talk about its market capitalization then it is more than 59600 crores.

Hero MotoCorp: Essential Facts

1 Trade Name Hero MotoCorp
2 Type Public
3 Industry Automotive
4 Founded 1984
5 Founder Brijmohan Lall Munjal
6 Headquarters New Delhi
7 Area Served World Wide
8 Product Motorcycles & Scooters
9 Number of employees 8959+
10 Revenue ₹34,727.39 crore
11 Parent Hero Motors Company
12 Website heromotocorp.com

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Reasons to Consider Hero MotoCorp Dealership

How to Get Hero MotoCorp Dealership 2023-Cost & Profit Margin

  1. Strong Brand- Hero MotoCorp is one of the largest and most recognized motorcycle manufacturers in the world. It has a market share of up to 46% in the two-wheeler industry. This is not only India but the world’s largest two-wheeler-selling company, due to the reputation and popularity of this brand, you will never have a shortage of customers.
  2. Wide Product Range- This company has the availability of a diverse range of motorcycles and scooters. They have 19 models of motorbikes and they manufacture motorbikes with an engine capacity ranging from 100cc to 400 cc, due to which you can sell the product to a broad customer according to their preference and budget.
  3. Market Demand- Talking about the market demand of Hero MotoCorp, it sells more than 70 lacs two-wheelers every year, and it has 110 million satisfied customers in 40-plus countries. If you join its franchise, you will get its existing customer base.
  4. Dealer Support- Once you get into its dealership, you get Hero MotoCorp support which includes training, marketing support, and operational guidance. This support can be invaluable, especially for those new to the automotive industry.
If you are interested in the Hero MotoCorp Dealership and if this article excites you then please continue reading.

 

Hero MotoCorp Dealership Cost

How to Get Hero MotoCorp Dealership 2023-Cost & Profit Margin

If we talk about the total investment cost in its dealership, then you will have to make a total starting investment of 70 lacs- 2 Crore. Hero MotoCorp Dealership Cost depends on many factors such as Franchise Fee, Geographical Location, Territory Size, Infrastructure and Equipment Cost, Initial Investment, and many more.

Land (10 years Lease) Rs. 5 Lac-10 Lac
Construction of Showroom & Service Center Rs. 50 Lac
Interior Infrastructure Rs. 20 Lac
Company Deposit Bank Guarantee (Rs. 10 Lac)
Working Capital Rs. 15 Lac
Initial Stock (50 Bikes) Rs. 40 Lac
Spare Parts for Service Bike Rs. 5 Lac
License fee Rs. 50,000
Working Capita Rs. 15 Lac
Lightening & Pipeline fitting Rs. 2 Lac

 

Note- If you’re seeking to open a Hero MotoCorp dealership with a more limited investment, you have the option to consider a sub-dealership. This alternative allows you to become part of the Hero MotoCorp network with an initial investment of approximately Rs 25 lakh.

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Hero MotoCorp Profit Margin

How to Get Hero MotoCorp Dealership 2023-Cost & Profit Margin

Before understanding the profit margin available on Hero MotoCorp, it is essential to know that each product’s profit margin is different. which is as follows

  • Vehicles Sale (3-5%)
  • Retail Finance (2-3%)
  • Insurance (up to 40%)
  • Vehicle Servicing (4-7%)
  • Spare Parts (20-25%)
  • Engine Oil
  • Accessories
  • Value Added Services

Let us quickly understand the profit margin of Hero MotoCorp with an example.

Hero Glamour (BS6) Price – Rs. 74,772- 84,206

Average Price- Rs. 80,000

Gross Profit on each unit – Rs. 10,000- 14,000

Average Profit- Rs. 12,200

Let us assume that you sell 20 units of two-wheelers every month and you consume up to 5 lacs of spare parts (in Hero MotoCorp service centers).

Total Sale  20*80,000 + 5,00,000 = 21,00,000
Profit on 20 Two-Wheelers (@ Rs. 12,200) 20 * 12,200 = Rs. 2,44,000
Profit on Spare Parts (@20%) 5,00,000 * 20% = Rs. 1,00,000
Less: 2 sales Person Rs. -15000
Less: Backoffice Rs. -8000
Less: Accountant Rs. -10,000
Less: Manager Rs. -17000
Less: Guard Rs. -8000
Less: Sweeper Rs. -5000
Less: Coffee/Chai maid Rs. -4000
Less: Electricity (Showroom) & Internet Bill Rs. -5000
Less: Miscellaneous Expense Rs. -10,000
Net Profit Rs. 2,62,000

 

Here we can see that we are getting a Net Profit Margin of 8.01% so we can say that at Hero MotoCorp Franchise we can get a Net Profit of 8-10%. After taking this franchise, your monthly income can be from Rs. 2,50,000-4,00,000.

Requirement for Hero MotoCorp Dealership

How to Get Hero MotoCorp Dealership 2023-Cost & Profit Margin

  1. First of all, the primary requirement to open Hero MotoCorp is that you will need a total investment money from 70 lacs to 1.5 crore.
  2. To open its showroom, you need an area of up to 4000 square feet and that area should be on the ground floor with a minimum of 50 square feet of frontage for the showroom.
  3. One important thing for its franchisee is that there should not be any other Hero MotoCorp dealer already in the location for which you are applying for their dealership.
  4. You have to design the interior of your store according to the company’s standards and have to undergo and complete the training conducted by the company.

Documents Requirement for Hero MotoCorp Dealership

If you want to open a Hero MotoCorp dealership, then it is very important to have some documents and a license.

  • Personal Documents like Aadhar cards, Pan Cards, Voter ID
  • ITR for the Last 2 years
  • EPF & ESIC
  • Establishment License
  • GST Registration
  • Electricity Permission (for transformer)
  • Commercial space paper (3000 sq.ft. – 4000 sq.ft.)
  • Experience in Business (If applicable)
  • Business Registration
  • Udhyam registration

Hero MotoCorp Dealership Support

How to Get Hero MotoCorp Dealership 2023-Cost & Profit Margin

  1. It helps with site selection. This makes you know in which area you should open your outlet so that more and more customers can come to your outlet.
  2. It will help to set up the interior of your store.
  3. Also supports you in marketing and promotion so that our outlet can be quickly recognized in our area.
  4. They also provide training programs for your workmen and salesmen.

How to Apply for Hero MotoCorp Distributorship

The important thing to remember is not to trust brokers who say they can get you a Hero MotoCorp dealership or use other people to talk to Hero MotoCorp for you. Instead, it’s best to contact Hero MotoCorp’s main office or one of their local offices close to where you are. This way, you can deal directly with the company and get accurate information about becoming a dealership without any middlemen.

For this you have to open this link which will directly take you to the official application form of Hero MotoCorp Dealership and there you have to fill in the form carefully and then submit it.

How to Get Hero MotoCorp Dealership 2023-Cost & Profit Margin

Official Details

Hero MotoCorp Ltd.
34, Community Centre, Basant Lok, Vasant Vihar,
New Delhi – 110057, India.
Tel: +91-11-26142451, 26144121
Fax: +91-11-26143321, 26143198

Note- You can also contact them on the toll-free number- 1800 266 0018 for any information related to the dealership.

Risk in Hero MotoCorp Dealership

While starting a Hero MotoCorp Dealership in India can be a promising business opportunity, like any venture, it comes with its share of risks. It’s essential to be aware of these risks and take necessary precautions to mitigate them. Here are some potential risks associated with a Hero MotoCorp Dealership:

  1. Initial Investment: Setting up a Hero MotoCorp dealership, whether it’s a full one or a smaller sub-dealership, costs a lot of money at the beginning. You have to think about how much it will cost to have a place to show the motorcycles, keep bikes in stock, set up the necessary facilities, and handle other expenses. If the business doesn’t make enough money at the start, it could be tough for you financially.
  2. Business Management: Running a successful franchise requires effective business management skills. Inadequate management or lack of experience can hinder your franchise’s growth and profitability.
  3. Dependence on the Brand: Your success as a Hero MotoCorp dealership is connected to how well the Hero MotoCorp brand does. If Hero MotoCorp has problems like recalling products, a damaged reputation, or the market changes a lot, it could affect your dealership, even if it’s not your fault.

Conclusion

Hero MotoCorp has a 46% market share in the two-wheeler industry in India. Hero MotoCorp currently produces over 100 million units, making it the first automobile brand in India to achieve this feat. Hero MotoCorp has a sales and service network with over 9000 dealerships and service points across India. If we talk about its market capitalization then it is more than 59600 crores. You will need a total investment money from 70 lacs to 1.5 crore as well as 4000 sq. ft. area and the profit margin you can get on it is 8-10%

Every business has some merits as well as some risks to them, so according to me, consider each and every aspect before starting this franchise. If there are any questions related to this franchise, then you can ask us your question in the comment box below.

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FAQs

What is the investment required for a Hero MotoCorp dealership?

Total investment cost in its dealership, then you will have to make a total starting investment of 70 lacs- 2 Crore. Hero MotoCorp Dealership Cost depends on many factors such as Franchise Fee, Geographical Location, Territory Size, Infrastructure and Equipment Cost, Initial Investment, and many more.if you're seeking to open a Hero MotoCorp dealership with a more limited investment, you have the option to consider a sub-dealership. This alternative allows you to become part of the Hero MotoCorp network with an initial investment of approximately Rs 25 lakh.

Is Hero franchise profitable?

The profit margin available on Hero MotoCorp, it is essential to know that each product's profit margin is different. which is as follows Vehicles Sale (3-5%) Retail Finance (2-3%) Insurance (up to 40%) Vehicle Servicing (4-7%) Spare Parts (20-25%) Engine Oil Accessories Value Added Services Hero MotoCorp Franchise we can get a Net Profit of 8-10%. After taking this franchise, your monthly income can be from Rs. 2,50,000-4,00,000.

How can I be a sub-dealer of Hero MotoCorp?

If you're seeking to open a Hero MotoCorp dealership with a more limited investment, you have the option to consider a sub-dealership. This alternative allows you to become part of the Hero MotoCorp network with an initial investment of approximately Rs 25 lakh.

How do I get to a Hero dealership?

The important thing to remember is not to trust brokers who say they can get you a Hero MotoCorp dealership or use other people to talk to Hero MotoCorp for you. Instead, it’s best to contact Hero MotoCorp’s main office or one of their local offices close to where you are. This way, you can deal directly with the company and get accurate information about becoming a dealership without any middlemen.

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