If you have a plan to start a tyre dealership business in India, then you can partner with any of the well-known tyre brands in the county and start your business.
In this article, we will give you complete information about the JK tyre dealership. This article contains all the topics related to JK dealership, which includes JK tyre dealership cost, profit margin, shop space required, licenses, and registrations, whom to contact, etc.
Why choose JK dealership?
Owned by JK Group, JK tyres is Indias leading multinational tyre manufacturing company.
JK tyres has a presence in 105 counties with 180 global distributors. It has 4000+ dealers and 400+ exclusive brand showrooms.
JK tyres have 9 manufacturing plants worldwide. Out of this 9 are located in India and 3 in Mexico.
In India, these plants are in states like Karnataka, Madhyapradesh, Rajasthan, Tamilnadu, and Uttarakhand.
JK tyres manufacture tyres for two-wheelers, cars, heavy-duty vehicles like trucks and buses, farm vehicles, and industrial vehicles.
Licenses and Registrations Required
These are the licenses and registrations required to open a JK Tyre 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.
JK Tyre Dealership Cost
You need approximately INR 8 lakh to 10 lakh rupees to start an exclusive JK Tyre 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 -> 1.5 lakhs
- Initial inventory purchase -> 5 to 7 lakh rupees
- Shop Interior and Warehouse -> 1 to 2 lakhs (racks, furniture, computer system & printer, Signage board)
- 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 JK Tyre Dealership
From the JK Tyre dealership, you can expect a profit margin of 10% to 16%.
Like other tyre brands, the profit margin of JK Tyre 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 16% profit margin.
Space required for JK Tyre Dealership
You require a minimum space of 700 square feet of shop space to open a JK tyre dealership. Make sure that your shop has good connectivity.
How to get JK Tyre Dealership?
To get a JK dealership, first, you need to contact your area JK tyre sales manager. You can get his number by calling JK tyre toll-free number +91-11 6600 1112.
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 JK Tyre dealership mainly depends on factors like the density of other JK Tyre 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 JK Tyre dealership?
You require a minimum space of 700 square feet of shop space
Investment required to start a JK Tyre dealership?
You need to invest around 8 lakh to 10 lakh rupees
What is the Profit Margin in the JK Tyre dealership?
You can expect a profit margin of 10% to 16%
How to contact JK Tyres?
You can call their toll-free number +91 11 6600 1112.
I hope this guide to ‘JK tyre 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.