Electrical vehicles in India are replacing conventional internal combustion engine (ICE) vehicles very fast.
If you are thinking of starting a business in this fast-growing electric market, you can start an electrical scooter showroom by taking an Okinawa dealership.
This article includes topics like Okinawa dealership cost, profit margin, licenses and documents required, space required, how to apply for the dealership, etc.
Why choose Okinawa?
Launched in 2015, Okinawa Autotech Pvt. Ltd. is India’s leading electric two-wheeler manufacturing company. It has a corporate office in Gurugram, Haryana.
Okinawa has two manufacturing plants located in Alwar and Bhiwadi districts in Rajasthan state. In total, these plants have an annual manufacturing capacity of 5 lakh electric scooters.
The company has a plan to increase this production capacity to 1 million scooters per annum in the coming 3 to 4 years.
The brand has a 400+ dealership network all over the country. Okinawa has a range of electric scooters such as Ipraise+, Praisepro, Ridge+, R 30, Lite, Dual etc.
Licenses and Registrations required
These are the licenses and documents required to start an Okinawa 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 & IT returns
- 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 an Okinawa Dealership
You require a minimum of a 1200 square feet showroom and a 2000 square feet workshop to start an Okinawa electric scooter dealership.
So overall commercial space required is 3200 square feet.
Okinawa dealership cost
To start an Okinawa dealership, you need a minimum investment of 50 lakh rupees, considering a 1200 square feet showroom and a 2000 square feet workshop.
Here is the break-down of the investment,
- Minimum working capital required -> 35 lakh to 40 lakh ( to run the business)
- Security Deposite -> 2 lakhs ( Re-fundable )
- Showroom interior - > 7 to 9 lakh rupees
- Machines and equipment for the service centre -> 2 to 3 lakh rupees
- Miscellaneous expenses -> 1 lakh rupees
- Showroom/Warehouse lease amount - (extra)
The monthly expenses are Showroom/warehouse rent, staff and labour salary, inventory purchase, utility bills, etc.
Profit margin in Okinawa dealership
Apart from vehicle sales, Ev dealers also make profits from other sources.
The total profit in the Okinawa dealership is as follows,
- Okinawa Sales Margin -> up to 11% to 13% ( 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%
- The margin on service – 25 to 30% (labour 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 if the battery needs replacement.
How to get Okinawa dealership?
Also, visit them at –
651-654, 6th Floor, JMD Megapolis, Sector 48, Sohna Road, Gurugram – 122018.
Make sure there is no other Okinawa dealer in a 6-7 kilometre radius from your showroom. If there is any Okinawa 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 Okinawa dealership?
You require a minimum of 50 lakh rupees investment to start a dealership.
Shop space required for Okinawa dealership?
The minimum space required is 3200 square feet ( for the showroom and workshop).
Profit margin in Okinawa dealership?
You can expect a profit margin of up to 11% to 13% on ex-showroom price.
How to contact Okinawa?
You can call Okinawa on +91 124 4233197
I hope this article has resolved many of your doubts related to the Okinawa dealership. If you have any suggestions feel free to mention them in the comment box below.