Tyre is one such thing without which no vehicle can run on the ground. So if you want to start business in this field, then you can easily tie-up with any tyre brand and can start the tyre shop business.
There are already well-established tyre brands in the country like MRF, Ceat, Apollo, Michelin, JK tyres, Bridgestone, Goodyear etc.
In this article, we will give you complete information about the MRF tyre dealership. This article contains all the topics related to MRF dealership, which includes MRF tyre dealership cost, profit margin, shop space required, licenses, and registrations, whom to contact, etc.
Why choose MRF dealership?
Started in 1946, Madras Rubber Factory (MRF) is the largest tyre manufacturer in India and the Sixth largest tyre company in the world.
The company has a headquarters in Chennai, Tamilnadu.
MRF is a pan India company and its dealers are present in almost all Indian states. The Brand has an international presence also.
MRF entered the paint industry with the brand name of MRF paints and they also own tyre retreading brand called Pretreads.
MRF also manufactures sports goods like Cricket bats and other cricket kits. They have a children’s toy brand as well in the name of FUNSKOOL.
Licenses and Registrations Required
These are the licenses and registrations required to open a MRF 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
MRF tyres has certain terms and conditions, you need to fulfil them, such as,
- The customer should be fully satisfied with your service. There should be no complaint against you from the customers.
- Every product’s sell-out price will be decided by the brand itself.
- Warranty verification should be properly done by the dealer and replacements should be done as per company terms and conditions.
- All company schemes must be properly provided to the customers.
MRF Tyre Dealership Cost
You need approximately INR 20 lakh rupees to start an MRF 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 alters the total cost.
Here is the break-down above said amount,
- Dealership Security Deposit -> 4 lakhs
- Initial inventory purchase -> 12 to 14 lakh rupees
- Shop Interior and Warehouse -> 5 to 6 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 are employee salary, utility bills, adding stocks, shop rent etc.
Profit Margin in MRF Tyre Dealership
From MRF Tyre dealership you can expect a profit margin of 7% to 12%.
The profit margin in MRF 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 12% profit margin.
Almost all tyre brands offer special schemes like cash discounts, quantity discounts, product discounts, & outstanding balance nil, etc.
Space required for MRF Dealership
You require a minimum space of a 2000 square feet shop area to open an MRF tyre dealership. Make sure that your shop has good connectivity.
How to get MRF Tyre Dealership?
To get an MRF dealership, first, you need to contact your territory MRF tyre Business development manager. You can get his number by filling their ‘partner with us’ form on 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 MRF Tyre dealership mainly depends on factors like the density of other MRF Tyre dealers in your area, your experience in trading, your shop location, and your financial background, etc.
FAQ about Dealership
How much space required to start a MRF Tyre dealership?
You require a minimum space of 2000 square feet shop space
Investment required to start a MRF Tyre dealership?
You need to invest around 20 lakh Indian rupees
Which is the largest tyre brand in India ?
MRF Tyres is the largest tyre brand in India.
How to contact MRF Tyres?
You can contact them at their official website – contact us form.
I hope this guide to ‘MRF 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.
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