The automotive industry is a fast-growing market in India. It is always a good idea to start a business in this growing industry.
So using this opportunity, you can start a tyre trading business with multiple brands, or you can take an exclusive brand dealership with any of the tyre brands available in the Indian market.
In this article, we will give you complete information about the Bridgestone dealership. This article contains all the topics related to Bridgestone dealership, which includes Bridgestone tyre dealership cost, profit margin, shop space required, licenses, and registrations, whom to contact, etc.
Why choose Bridgestone tyre dealership?
Bridgestone is the Japan-based world’s largest tyre manufacturing company. The company has 181 manufacturing plants all over the world in 24 countries.
In India, Bridgestone tyres have been around for 20 years. It has manufacturing plants in Pune, Maharashtra, and Indore, Madhyapradesh.
The brand has a Pan India presence with dealers in every state. It has 3,000 dealers spread across the country.
Bridgestone offers tyres in defferent categories. Some of them are B-SERIES – well-balanced performance, ECOPIA – fuel efficiency, DUELER – on and off-road, TURANZA – Comfort & Quietness, ALENZA – CUVs & SUVs, etc.
Licenses and Registrations Required
These are the licenses and registrations required to open a Bridgestone dealership in India.
- Company Registration – Sole proprietorship/LLP/Pvt Ltd
- Trade Licence – from your local municipality
- Shop & Establishment Registration – from the state government
- GST Registration
- Previous bank statement / Income Tax Returns Returns
- Business Insurance if required
If you require a business loan, you can approach banks like SIDBI.
Bridgestone Dealership Cost
You need approximately INR 10 lakh to 12 lakh rupees to start a Bridgestone dealership.
This amount may vary from one city to another. In tier 1 cities it would be a bit expensive compared to tier 2 and tier 3 cities.
Other factors like whether you have your own shop or not and your initial stock purchase quantity also alter the total cost.
Here is the break-down above said amount,
- Dealership Security Deposit -> 2 lakhs
- Initial inventory purchase -> 7 to 8 lakh rupees
- Shop Interior and Warehouse -> 1.5 lakhs (racks, furniture, computer system & printer, Signage board)
- Miscellaneous -> 50,000 rupees
- Shop Advance + First-month Rent -> extra (if you do not own a shop)
The working capital required is employee salary, utility bills, adding stocks, shop rent, etc.
Profit Margin in Bridgestone Dealership
From Bridgestone tyre dealership you can expect a profit margin of 10% to 14%.
The profit margin of Bridgestone dealership is directly proportional to the number of sales you have made. i.e If you make more sales, then you will be able to gain more offers and bonuses offered by the company.
The company offers these bonuses & schemes after 6 months to 1 year after you have opened your dealership. If you succeed in meeting those sales targets then you can expect up to a 15% profit margin.
Almost all tyre brands offer special schemes like cash discounts, quantity discounts, product discounts, & outstanding balance nil, etc.
Space required for Bridgestone tyre Dealership
You require a minimum space of 800 square feet shop area to open a Bridgestone tyre dealership. Make sure that your shop has good connectivity.
How to get Bridgestone tyre Dealership?
To get a Bridgestone tyre dealership, first, you need to contact your Bridgestone sales manager. You can get his number by calling Bridgestone toll-free number 1800 222 088.
You can also contact them at their official website.
Once you contact the brand, they will be in touch with you and if you are eligible, then help you in launching your dealership.
Your eligibility for the Bridgestone tyre dealership mainly depends on factors like the density of other Bridgestone dealers in your area, your experience in trading, your shop location, and your financial background, etc.
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FAQ about Dealership
How much space is required to start a Bridgestone dealership?
You require a minimum of 800 square feet of shop space
Investment required to start a Bridgestone dealership?
You need to invest around 10 lakh to 12 lakh rupees
What is the Profit Margin in the Bridgestone dealership?
You can expect a profit margin of 10% to 14%
How to contact Bridgestone?
You can call their toll-free number 1800 222 088.
I hope this guide to ‘Bridgestone dealership’ will help you get started. If you have any additional suggestions, feel free to mention them in the comments section below. If you like this article then kindly share it with your friends.