How to start Michelin Tyre Dealership in India?

If you are planning to start a business in the automotive industry, you can open a tyre dealership store by tying up with any tyre brand.

There are already well-established tyre brands in the country like MRF, Ceat, Apollo, Michelin, Goodyear, JK tyres, Bridgestone, Falken, etc.

In this article, we will give you complete information about the Michelin tyre dealership. This article contains all the topics related to Michelin dealership, which includes Michelin tyre dealership cost, profit margin, shop space required, licenses, and registrations, whom to contact, etc.

Why choose Michelin tyre dealership?

Michelin is the France-based world’s second-largest tyre manufacturing company. The company has 69 manufacturing plants all over the world in 18 countries.

The company entered the Indian market in 2009, it has manufacturing plants near Chennai, Tamilnadu. The brand has a presence in almost all Indian states.

In India, Michelin manufactures tyres for Passenger Cars, Truck & Bus, and Two Wheeler & Off the Road vehicles.

Licenses and Registrations Required

These are the licenses and registrations required to open a Michelin 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.

Michelin tyre Dealership Cost

You need approximately INR 9 lakh to 10 lakh rupees to start a Michelin 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 -> 2 lakhs
• Initial inventory purchase -> 6 to 7 lakh rupees
• Shop Interior and Warehouse -> 1 lakh (racks, furniture, computer system & printer, Signage board)
• Miscellaneous -> 40,000 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.

Related:

1. How to start Tyre Business in India | Complete Details
   
2. MRF Tyre Dealership | Complete Guide

Profit Margin in Michelin tyre Dealership

From Michelin tyre dealership you can expect a profit margin of 12% to 14%.

The profit margin of Michelin 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 Michelin tyre Dealership

You require a minimum space of 700 square feet shop area to open a Michelin dealership. Make sure that your shop has good connectivity.

How to get Michelin Dealership?

To get a Michelin tyre dealership, first, you need to contact your Michelin sales manager. You can get his number by calling Michelin toll-free number 1800 103 6424.

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 Michelin tyre dealership mainly depends on factors like the density of other Michelin dealers in your area, your experience in trading, your shop location, and your financial background, etc.

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FAQ about Dealership

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