[TakeOnMe]

Yes GTO, they came but wanted really deep pockets. Maybe their cost benefit needs more work!
Thanks,

[Ricky_63]

Originally Posted by GTO

Well, thats applicable to any business, isn't it? I know black-to-white fund managers (believe me, there are) use the entertainment, hospitality & export-import industries to convert. But this is the first time I am hearing of a car dealership being used for this purpose. Quite frankly, I think it will be difficult for them via this route. On the land acquisition, sure....but I'd presume its hard for black money to see a place in any other area of a car dealership.

@GTO

You are correct about the use of "black" only for the land bit - BUT - there is another avenue where this colour is in demand..the whole process of "getting" the dealership in the first place.

Though this is not applicable to all manufacturers. It does play a significant role in "who" gets the dealership.

Sad but true !!


Cheers

[GTO]

The jurys out on whether its a good time to invest in a car dealership. Or not. On the one hand, you'd get the real estate at killer prices, and lots of talent available in the market too. On the other hand : Linky

Excerpt from the article:

ust when car companies are pushing to ramp up their national footprint,

a large number of automobile dealerships are on the
brink of shutting shop. Auto
dealers are already suffering the worst business environment. The combined impact of inventory pile-up, increasing cost of credit and declining profits could see more than 100 dealerships actually closing down.

According to the Federation of Automobile Dealers Association (FADA), the apex body of automobile dealers in India, more than 50 dealers have already closed shop in the past one year and a significant number could be following suit in 2009.

In some cases, dealers in major metros like Delhi, Mumbai, Kolkata and Hyderabad are generating better returns from real estate rentals than from their automobile business. Carmakers are fighting hard to retain dealers who are exiting the business as profits drop and cut-throat competition forces them to dole out huge discounts.

[anujmishra]

May of OT but I want to know

Why it is called Car dealership? Why no Car Retailer-ship? Of course they are retailing car directly to the market. Isn't this term conflict with actual dealership definition.

[nkrishnap]

Just curious to know what margins do the below manufacturers give

1) FIAT
2) TATA
3) Maruti

[pranava999]

Hi buddies,

A friend of mine is thinking of setting up an authorised service center. He still has not decided on the car manufacturer. He has no real contacts with auto dealers and is finding it difficult to work out a ball park estimate of the investment that is required even before he considers approaching a car manufacturer a she has no experience in this field

He does have a 5,000 sq feet industrial shed that is due for vacation by its tenant in a month or two and is looking at options to utilise this space close to KR Puram either to set up an auto component industry or an A.S.S

We thought someone here on the forum may have a fairly realistic idea of the investment requirements,risks and factors that are important.

Would truly appreciate if some of you could give us some details and insights.

Thanks.

[FastLove]

I can only contribute by saying that this is a good idea and wish you and your friend All the Success

[pranava999]

no problem fast love. hoping a few may have an idea of it either from experience or from their acquaintances

[Eddy]

Something might be relevant here

http://www.team-bhp.com/forum/indian...hip-india.html

[pranava999]

Originally Posted by Eddy

Something might be relevant here

http://www.team-bhp.com/forum/indian...hip-india.html

Thanks Eddy. The thread mainly discusses showrooms. The friend is more keen on A.S.S

[Rehaan]

Some related reading :

http://www.team-bhp.com/forum/indian...hip-india.html

http://www.team-bhp.com/forum/shifti...ealership.html

http://www.team-bhp.com/forum/shifti...ow-set-up.html

http://www.team-bhp.com/forum/indian...r-margins.html

http://www.team-bhp.com/forum/indian...-workshop.html

cya
R

[pranava999]

@rehaan - Thanks some of the posts on those threads were useful,however their main focus was on dealership and sales aspects, rather than the service setup.

The thread 'What you look for in a dealership/workshop?' was very good to understand the needs of a consumer.

Thanks

[mxx]

what is deal with the manufacturers who are expanding fast, like VW, they seem to be setting up dealerships at a fast pace. And there are reports of certain dealers jumping to VW. So, is the new set of manufacturers - renault, nissan, vw - offering a substantially better opportunity?

[Gooney]

Originally Posted by pranava999

Hi buddies,

A friend of mine is thinking of setting up an authorised service center.

Hi Pranava refer to post #44 by svsantosh. Although his estimates are about the showroon, it holds good for a service center too. Your friend should expect something lesser than the INR 50 million described by svsantosh. Tell your friend he should be prepared to shell out a considerable sum on equipments, in fact, it is equipments and experienced mechanics that define the USP of a service center.

Also, I read someone was asking about the profit margin of dealers. Margins vary according to the type of vehicles sold. Luxury vehicles have more margins, volume-sellers have lesser. Average industry margins range between 15-25 percent (this range is not rigid and may vary).

[Swanand Inamdar]

Honestly, if so many BHPians are serious on setting up a dealership and/or a workshop, then why not take up the cause seriously?

Long ago, I had read a thread where GTO stated, that he would love to setup an HONEST workshop, where people arent duped.

Hmm, someday. In this life or the other.