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How to start Ather Dealership?

By 2030, the government has an ambitious plan to stop all petrol and diesel vehicles. Many new companies have come to market using this opportunity. Many investors are investing in these companies.

If you are thinking of starting a business in this fast-growing electric market, you can start an electrical scooter showroom by taking an Ather dealership.

This article includes topics like Ather dealership cost, profit margin, licenses and documents required, space required, how to apply for the dealership, etc.

Why choose Ather Energy?

Established in 2013, Ather Energy is a Bangalore-based electric vehicle company. The company has a headquarters in Bangalore, Karnataka, and a factory in Hosur, Tamilnadu.

Ather is a fundamentally good company backed by Hero MoCorp, India’s leading ICE motorcycle manufacturers.

The company has received investments from Hero MotoCorp, Flipkart founders Sachin and Binny Bansal, Tiger Global, and others.

Ather Dealership

The Ather factory, located in Hosur has an annual manufacturing capacity of 1.3 lakh scooters and 1.4 lakh battery packs.

The company has two electric scooter models Ather 450X and Ather 450 Plus in the market. The Ather brand has a presence in 30 Indian cities.

Ather Energy also has an electric vehicle charging infrastructure called Ather Grid.

Licenses and Registrations required

These are the licenses and documents required to start an Ather dealership.

  • Dealership License
  • Business Registration – Sole proprietorship/LLP/Pvt Limited
  • Trade Licence – from the local municipality
  • Shop & Establishment Registration – from the state board
  • GST certificate
  • Good CIBIL score ( Credit History )
  • Valid land documents / Lease agreements.
  • Business Insurance

If you lack capital, then you can approach banks for Business Loan with a proper business plan.

Space required to start a Ather Dealership

You require a minimum of a 2000 square feet showroom and a 2000 square feet workshop to start an Ather electric scooter dealership.

So overall commercial space required is 4000 square feet.

Ather dealership Cost

Ather Dealership Cost

To start an Ather dealership, you need approximately 2 crores to 4 crores of investment, considering a 2000 square feet showroom and 2000 square feet workshop.

Here is the break-down of the investment,

  • Minimum working capital required -> 1.8 crores ( to run the business)
  • Showroom interior - > 5 to 7 lakh rupees
  • Machines and equipments for the service center -> 3 to 5 lakh rupees
  • Miscellaneous expenses -> 2.5 lakh upees
  • Showroom/Warehouse lease amount - (extra)

The monthly expenses are Showroom/warehouse rent, staff and labor salary, inventory purchase, utility bills, etc.

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Profit margin in Ather dealership

Apart from vehicle sales, Ev dealers also make profits from other sources.

The total profit in the Ather dealership is as follows,

  • Ather Sales Margin -> up to 8% to 12% ( of Ex-Showroom Price )
  • Commission from insurance – 15% to 25% ( of OD amount )
  • commission from loan – about 3% to 5% ( of the loan amount )
  • Commission from Accessories sale – 15% to 20%
  • Commission from spare parts sale – 15% to 20%
  • Margin on service – 25 to 30% (labor charges, engine oil, etc.)

The after-sales service of electrical vehicles is very low compared to traditional internal combustion engine (ICE) vehicles. So a good margin is essential in vehicle sales.

After 3 to 4 years you can expect some revenue from spare parts sales, especially the battery needs replacement.

How to get Ather dealership?

You can contact Ather on their number +91 080 66465757. You can also contact them at their official website, to get contact details or send an email to [email protected]

Ather Electric scooter dealership

Also, visit them at –

3rd Floor, Tower D, IBC Knowledge Park, Bannerghatta Main Road, Bengaluru – 560029.

Make sure there is no other Ather dealer in a 6-7 kilometer radius from your showroom. If there is any Ather dealer nearby, then the chances of you getting a dealership are very less.

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FAQ about Dealership

How much investment is required for the Ather dealership?

You require a minimum of 2 crores to 4 crores rupees investment to start a dealership.

Shop space required for Ather dealership?

The minimum space required is 4000 square feet ( for showroom and workshop).

Profit margin in Ather dealership?

You can expect a profit margin of up to 8% to 12% on ex-showroom price.

Ather Energy contact number?

You can call Ather energy on +91 08066 465757

I hope this article has resolved many of your doubts related to the Ather dealership. If you have any suggestions feel free to mention them in the comment box below.

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