Have you been googling about finding a best two Wheeler dealership in India? Are you currently associated with any other automobile franchisee, and looking to partner with other as well? Do you have the necessary capital to start two Wheeler automobile franchise?
If your response was “yes,” you might be curious to learn more about TVS Showroom Dealership, a fast-expanding 2-wheeler franchise that has been making waves in the automobile industry. In this post, we’ll cover a detailed article on the TVS Dealership with its capital required, cost, profit, and step-by-step guidelines to get this franchise – and answer some common questions about the chain.
- Brand: TVS Motors
- Founded: 1911
- HQ: Chennai, TN
- Founder: TV Sundaram
- Area Required: Min. 1500 sq. ft.
- Revenue: ₹24,338 Crore (FY22)
- Deposit Fee: ₹10 lacs – 20 lacs
- Profit Margin: 10-18%
- Showroom Frontage: 35-40 ft
- TVS showroom dealership cost : Rs. 1 Crores – 5 Crores
Table of Contents
Overview of TVS Dealership
Founded in 1911 by one of India’s renowned Automobile Entrepreneur, TV Sundaram Iyengar, TVS Motors is a leading and fastest-growing two-wheeler manufacturer in India. It was started as a small business selling bicycles in Madurai, TN. Over the years with multiple successful collaboration, TVS has expanded its product portfolio to a wider range, including mopeds, scooters, and motorcycles.
Ever since its establishment, TVS Motors has grown its market share significantly and currently renowned as India’s third largest 2-wheeler company in India with a revenue of over ₹18,217 crore (over US $ 2.9 billion), thanks to its innovative and high-quality products.
Having its strong commitment and focus on research and development, the chain has invested heavily in technology and engineering to develop products that meet the needs of Indian and International consumers as well.
It is to be noted that, TVS has collaborated with Suzuki Motor Corporation of Japan, which helped the company to improve the quality and performance of its products. However, their partnership with Suzuki ended in 2001, making TVS Motors as an Independent entity.
Currently, TVS Motors boasts over 3300+ strong network of authorized dealerships across India, providing a one-stop-shop for all their two-wheeler needs to its consumers, including vehicle purchasing, financing options, and servicing.
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TVS Dealership Opportunities – The Journey
Started as small business selling bicycles in Madurai to quickly understanding the consumer demand and growing technology, TVS collaborated with popular brand – Suzuki Motocorp of Japan, which helped them improve the quality and performance of its products, leading TVS Motors to become one of India’s 2nd largest two-wheelers manufacturers.
With its rise in demand, growing sales volume, and use of latest technology will definitely create enormous demand for its dealership in India.
Key Facts on TVS Motors
|1||Trade Name||TVS Motors|
|4||Founders Or Parent Company||TV Sundaram Iyengar|
|5||Corporate Headquarters||Chennai, TN, India|
|6||Number of locations||Over 3300+ Dealers|
|7||Area served||PAN India|
|9||Product offering||Moped, Scooters, Electric bikes,|
|10||Revenue||₹24,338 Crore in FY22|
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Why Consider Owning a TVS Showroom Dealership?
There could be multiple reasons for partnering with a brand like TVS in India, and some of the prominent reasons are mentioned below for your reference;
- Leader in the market:
- India is certainly a price-sensitive market, and competitive in this market is tough as food and beverages franchise. But by pairing yourself with TVS, you’ll be certainly in a good hand. Being a 2nd largest manufacturer, you may never face delivery shortage.
- Upper hand in Experience:
- TVS has a vast experience in Indian market that have been innovating and delivering demands of its consumers regularly. As a TVS Dealers, you may leverage the brand value and its loyal customer base.
- Consistent growth pattern:
- TVS has been giving consistent growth and return to its investors, be it an equity holder or automotive dealer.
- According to its official website report, “The company has registered a sales growth of 3% Y-O-Y with sales increasing from 266,788 units to 275,115 units in January 2022- 2023”.
- A Wide range of Product Portfolio:
- As a TVS dealer, you may offer a wide range of product to your consumers in your city, including, mopeds, scooters, and a few high-end bikes.
- With its diverse portfolio, you’ll be able to cater to audience from across the standards, ultimately maximizing the net profit margin.
- Awards and Recognition:
- TVS has been recognized by several media houses and been continuously advertising its high-end products on social media and offline agencies.
- It can help new franchisees to garner a quick sales and making recurring profits.
- Flexible Dealership options available:
- TVS offers a flexible dealership program to its aspiring entrepreneurs, and one can become its partner by investing minimum of ₹1 Cr (we’ll be discussing more in details).
How much does a TVS Dealership Cost in India?
The dealership cost or Total Initial investment cost for TVS Motors will depend on the chosen dealership model, city, available floor area, and initial stocking capacity of the applicant.
Nonetheless, To become an approved TVS Dealership partner, one would at least require an initial investment ranging from ₹2 Crore to ₹ 5 Crores for Authorised main dealer and around ₹1 Crores for Authorised dealer with a floor area of min. 1500 sq. ft.
The above-mentioned initial investment for TVS Motors business does cover the expenses or fees such as Brand deposit fees, Marketing Fees, Interior setup, Marketing, Initial stock, and other necessary expenses.
Basically, TVS offers two kind of dealership programs under it;
- Authorised Main Dealer
- Authorised Dealer
Cost Involved in each model:
Cost Involved for Authorised Main Dealer
Authorised Main Dealer: Also referred as AMD. It is one of kind of main dealer of the chain that is based in town having a population of more than 1 lakh.
|Type of Cost||Cost and Other details|
|Brand Deposit Fee||Approx. ₹ 10 lacs – 20 lacs|
|Showroom Frontage||Min. 45 ft|
|Showroom Area||1800 -2500 sq feet|
|Workshop Area||2500 -3000 sq feet|
|Spare Parts Area||400 -500 sq feet|
|Interior setup cost||₹30 lakh – ₹40 lakh|
|Initial Stocks||₹80 lakh to ₹ 1 Crore|
|Spare Parts||₹5 lakhs -10 lakhs|
|Initial Working Capital||₹40 lakh to ₹ 50 lakh|
|Total Initial Investment||₹ 2 Crores – 5 Crores|
Cost Involved for Authorised Dealer
Authorised Dealer: Also referred as AD. It is one of kind of sub-dealer of the chain that is based in town having a population of less than 1 lakh.
|Type of Cost||Cost and Other details|
|Brand Deposit Fee||Approx. ₹ 5 lakhs – 10 lakhs|
|Showroom Frontage||Min. 30-35 ft|
|Showroom Area||Min. 1000 sq feet|
|Workshop Area||800 sq feet|
|Spare Parts Area||Min. 300 sq feet|
|Interior setup cost||₹5 lakh – ₹10 lakh|
|Initial Stocks||₹50 lakh to ₹ 60 lakh|
|Spare Parts||₹2 lakhs -5 lakhs|
|Initial Working Capital||₹15 lakh to ₹ 25 lakh|
|TVS Franchise Cost||Approx. ₹ 1 Crore|
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How much is TVS Dealership Profit Margin?
As an authorized TVS dealer, you’ll be able to its leverage the company’s footprint in automobile industry. Each product of TVS offers a reasonable profit margin, ranging from its low-end vehicle to high-end to its spare parts.
Moreover, the profitability of TVS dealers will depend primarily on the showroom’s geographical location, average customer footfall, outlet’s visibility, initial stocking capacity, and many more.
Nonetheless, considering TVS Motor’s expertise of over several decade, affordable and premium product portfolio, Countrywide presence, flexible dealership model, exemplary marketing strategies, robust supply chain, and best-in-class tech support may help new dealer to anticipate a healthy profit margin of 12-20% on its overall product.
What will be the revenue streams for TVS Motors Dealership?
For an authorized TVS dealers, It provides a multiple source of revenue streams and profit margin may vary depending on the product you sale.
Some of the major source of income for a dealers are listed below;
- Sales revenue – Varies from 5-8% on each sales.
- Vehicle Insurance – Around 4-7%
- Spare Parts – 20-25% on MRP
- Usual servicing – 10-12%
What are the requirements to acquire a TVS Motors Dealership?
Some of their major requirements are listed below;
- First and most important – One should be financially well-qualified and have good credit to start a TVS showroom, and should be ready to invest minimum ₹1 Crore – 2 lacs.
- Applicant should have an adequate amount of space to put a Showroom, Service center, and a small area for spare parts storage.
- Interested applicants are advised to dedicate themselves to the TVS business and follow the company standards and maintain their legacy.
- Interested prospects must undergo and complete the necessary training program offered by TVS team.
- Interested franchisees should have a passion to work in the Automotive industry and should possess the leadership and financial skills to operate a TVS Showroom.
- Applicants are advised to secure a suitable location that meet TVS franchise requirements, such as high visibility and easy accessibility with a min floor space of min 1500 sq feet with a proper frontage of 35-40 ft.
Document required for TVS Dealership
- Personal documents, such as Aadhar Card, Pan Card, Voter ID
- Passport Size Photograph
- GST Registration certificate
- NOC from respective body
- Address proof for Showroom
- Electricity connection document
- Water connection bill
- Trade License
- Income Tax Copy
How to Get TVS Dealership?
For starting a TVS Showroom will require a relatively moderate investment that may offer an impressive gross relatively better margin. Additionally, the TVS chain may provide several benefits, and interested candidates can take up franchise outlets in their city through their expertise and endless support systems.
One can avail this franchise using below mentioned steps;
- Visit its official website and navigate to the dealership section;
- Fill in the details, such as Name, Email Id, Phone Number, City, State, Turnover, Year of experience, and other necessary info.
Please note that an incomplete form may lead to your application rejection.
Final Takeaway – Summary
TVS is one of India’s leading and third largest manufactures of 2-wheelers, offering a wide range of affordable and high-end products. Its renowned product range, includes, moped, scooters, and motorcycles. They have also ventured into EV segments and are performing exceptionally well.( We’ll be covering an in-depth article on its EV franchise in another article). So, do follow our page for some exciting business coverage.
To become an authorized TVS dealer, one should buckle up to make an investment of at least ₹1 crores to ₹ 2 crores with a floor area of min 1500 sq ft and store frontage of 35-40 ft. However, these investment range may vary depending on the location and chosen model.
The Final Thought – Overall, TVS Motors is a respected, reputed, and well-established brand in India with more than 3300+ dealers present across the country. With more room for outlet’s expansion and new launches, TVS is well-positioned to continue its extraordinary growth and expansion journey in the coming years.
If you are passionate about Automobile industry and ready with its initial investment ask, then you are set to go with TVS Dealership Journey. Don’t forget to leverage the brand’s extraordinary growth and training systems.
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Good Luck!! Happy Franchising!!
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How much does it cost to Start a TVS Motors Dealership?
Ans: The average cost required to become a TVS Motors channel partner may range between ₹1 Crores to ₹ 2 Crores with a floor area of min 1500 sq feet. The outlet frontage should be at least 35-40 ft.
Is TVS Dealership Profitable?
Ans: Certainly yes. But the profitability of any 2-wheeler outlet may depend on several factor, such as outlets geographical location and chosen model. TVS offers an interesting profit margin on its range of products and services, while sales revenue percentage may seems low as 5-7% but profit margin on spare parts will be around 20-25% on MRP.
List of countries where TVS has its presence?
Ans: TVS has presence in countries, such as India, Philippines, Afghanistan, Bahrain, Bangladesh, Cambodia, Indonesia, Iran, Iraq, Kuwait, Myanmar, Nepal, Sri Lanka, UAE, and Yemen.