The use of electric vehicles in India is growing so fast that almost every company in the automobile industry has started making electric vehicles.
The two-wheeler market in particular is changing rapidly towards electric-powered vehicles.
If you are thinking of starting a business in this fast-growing electric market, you can start an electrical scooter showroom by taking a Hero Electric dealership.
This article includes topics like Hero Electric dealership cost, profit margin, licenses and documents required, space required, how to apply for the dealership, etc.
Why choose Hero Electric?
Established in 2007, Hero Electric is India’s first and largest electric 2-wheeler manufacturing company. The company has a headquarters in Gurugram, Haryana.
As of now, Hero Electric has a more than 50 per cent market share in the Indian 2 wheeler electrical vehicle market.
The Hero Electric brand has a presence in 25+ Indian states with more than 700+ touchpoints. It has a manufacturing plant in Ludhiana, Punjab State.
The Hero eclectic scooter brand model names are Atria, Flash, Hero Eddy, Nyx, Optima, and Photon.
The company also manufactures the E-cycle (electric cycle) called Velocity E-cycle.
Licenses and Registrations required
These are the licenses and documents required to start a Hero Electric 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
- 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 Hero Electric Dealership
You require a minimum of 1800 to 2200 square feet showroom and a 2000 square feet workshop to start a Hero Electric scooter dealership.
So overall commercial space required is 4000 square feet.
Hero Electric dealership Cost
To start a Hero Electric dealership, you need approximately 60 lakh rupees 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 -> 50 lakhs ( to run the business)
- Showroom interior - > 5 to 6 lakh rupees
- Machines and equipments for the service center -> 3 to 4 lakh rupees
- Miscellaneous expenses -> 2 lakh upees
- Showroom/Warehouse lease amount - (extra)
The monthly expenses are Showroom/warehouse rent, staff and labour salary, inventory purchase, utility bills, etc.
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Profit margin in Hero Electric dealership
Apart from vehicle sales, Ev dealers also make profits from other sources.
The total profit in the Hero Electric dealership is as follows,
- Hero Electric Sales Margin -> up to 8% to 12% ( of Ex-Showroom Price )
- Commission from insurance – 12% to 20% ( of OD amount )
- commission from loan – about 3% to 4% ( 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 Hero Electric dealership?
Also, visit them at –
Plot No. 57, Udyog Vihar IV, Sector 18, Gurugram – 122015.
Make sure there is no other Hero Electric dealer in a 6-7 kilometre radius from your showroom. If there is any Hero Electric 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 Hero Electric dealership?
You require a minimum of 60 lakh rupees investment to start the dealership.
Shop space required for Hero Electric dealership?
The minimum space required is 4000 square feet ( for showroom and workshop).
Profit margin in Hero Electric dealership?
You can expect a profit margin of up to 8% to 12% on ex-showroom price.
Hero Electric contact number?
You can call Hero Electric on their toll-free number 1860 2662 2662.
I hope this article has resolved many of your doubts related to the Hero Electric dealership. If you have any suggestions feel free to mention them in the comment box below.