Due to low running costs and tax benefits while purchasing, the demand for electric scooters, in India is increasing rapidly.
You can make use of this opportunity by starting an electric scooter dealership, partnering with top EV brands like TVS.
This article will provide complete details related to the TVS electric scooter dealership, including dealership cost, profit potential, and contact information.
Why choose TVS Electric?
Established in 1978, TVS Motor Company is India’s 3rd largest two-wheeler manufacturer.
TVS has four manufacturing plants with an annual production capacity of 5 million two-wheelers. These plants are located in Karnataka, Tamil Nadu, and Himachal Pradesh in India, and Karawang in Indonesia.
Apart from India, TVS also has a presence in the Middle East, Africa, Southeast Asia, the Indian subcontinent, and Latin & Central America.
TVS launched its first electric scooter, the TVS iQube, in January 2020. This scooter has a range of 100 km per charge and a maximum speed of 78 km/hour.
TVS electric scooters have dealers in more than 100 Indian cities.
Licenses and Registrations required
These are the licenses and documents required to start a TVS electric scooter dealership.
✅ Business Registration – Sole proprietorship/LLP/Pvt Limited
✅ Shop & Establishment Registration (from the state government)
✅ GST certificate
✅ Good CIBIL score ( Credit History )
✅ Valid land documents / Lease agreements
✅ Business Insurance (if required)
If you lack capital, then you can approach banks for business loans with a proper business plan.
Space required for the dealership
You require a minimum of a 1500 square feet showroom and a 1000 square feet workshop to start a TVS electric scooter dealership. So the overall commercial space required is 2500 square feet.
TVS Electric Scooter Dealership Cost
To start a TVS electric scooter dealership, you need approximately 65 lakhs to 75 lakh investment, considering a 1500 square feet showroom and 1000 square feet workshop.
Here is the break-down of the investment,
➤ Minimum working capital required -> 50 lakhs ( to run the business)
➤ Showroom interior - > 4 to 5 lakhs
➤ Machines and equipment for the service centre -> 2 to 4 lakhs
➤ Miscellaneous expenses -> 1.5 lakh rupees
➤ Showroom/Warehouse lease amount - (extra)
The monthly expenses are Showroom/warehouse rent, staff and labour salary, inventory purchase, utility bills, etc.
Related:
Profit margin in TVS electric scooter dealership
Apart from vehicle sales, Ev dealers also make profits from other sources.
The approximate total profit of the TVS electric scooter dealership is as follows,
➤ TVS EV Sales Margin -> up to 8% to 12% ( of Ex-Showroom Price )
➤ Commission from insurance – 15% 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 TVS electric scooter dealership?
You can contact TVS on their phone at 04344-276780 OR +91-44-28332115. You can also contact them at their official website, to get contact details.
Also, visit them at –
Post Box No. 4, Harita, Hosur, Tamilnadu – 635 109
Make sure there is no other TVS electric scooter dealer in a 6-7 kilometre radius of your planned showroom. If there is any TVS EV dealer nearby, then the chances of you getting a dealership are very less.
FAQ about Dealership
How much investment is required for the TVS EV scooter dealership?
You require a minimum of 65 lakhs to 75 lakhs investment to start a dealership.
Shop space required for TVS EV dealership?
The minimum space required is 2500 square feet ( for the showroom and workshop).
Profit margin in TVS EV scooter dealership?
You can expect a profit margin of up to 8% to 12% on ex-showroom prices.
TVS Motors contact number?
You can call TVS Motor on 04344-276780 OR +91-44-28332115
I hope this article has resolved many of your doubts related to the TVS electric scooter dealership. If you have any suggestions feel free to mention them in the comment box below.