Team-BHP > Team-BHP Reviews > Indian Car Dealerships


Reply
  Search this Thread
431,547 views
Old 4th October 2004, 12:48   #1
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 70,241
Thanked: 298,052 Times
How much does it cost to set up a car dealership in India?

These are indicative figures for the cost of opening up a car dealership.

Mercedes Dealerships : 6 Crore (rented land)
BMW : 9 Crore (Bangalore)
Porsche / Bentley : 5 crore
Audi : 3 Crore
Nissan : 6 crore
Skoda : 1 crore

Apparently the interiors along cost 1 crore upwards. And the workshop? A Cool 3 crore+.

GTO

Source : Economic Times Article
GTO is offline   (4) Thanks
Old 4th October 2004, 12:57   #2
BHPian
 
Join Date: Feb 2004
Location: Shuffling between chicago and delhi
Posts: 764
Thanked: 4 Times

wow, but i am sure the kind of money these guys make is not a joke as well, covering the cost in may be 4 yrs or so..

also if u happen to have BMW and Merc dealership then the cost doesnt become a sum right, it would be much lower?
_Crazi4Speed_ is offline   (1) Thanks
Old 4th October 2004, 13:22   #3
bhp
BHPian
 
bhp's Avatar
 
Join Date: Jul 2004
Location: lokhandwala mumbai
Posts: 840
Thanked: 168 Times

hey how much does an honda dealership cost in mumbai and the cost of opening an workshop of honda .
thanks
monty
bhp is offline  
Old 4th October 2004, 13:36   #4
BHPian
 
libre sito's Avatar
 
Join Date: Aug 2004
Location: Mumbai/Brooklyn/New Jersey
Posts: 149
Thanked: 5 Times

Hey GTO, it's just the setup cost that you are talking about, but when you look at the investment point of view, a Honda dealership in Bombay would easily make a hole of at least 15 crores in your pocket.

And the Nissan dealer in Mumbai has spent lots on his dealership (he;s my dads good friend). He's also got a Toyota workshop that goes by the name of Lakozy.

Last edited by GTO : 11th October 2012 at 13:08. Reason: Removing SMS language
libre sito is offline  
Old 4th October 2004, 14:03   #5
Team-BHP Support
 
Join Date: Feb 2004
Location: Bangalore
Posts: 14,829
Thanked: 27,703 Times

What about working capital to stock cars and parts ?
ajmat is offline  
Old 13th June 2007, 17:56   #6
Newbie
 
Join Date: Jun 2007
Location: jaipur
Posts: 1
Thanked: 0 Times
Project Cost Of Honda Dealership?

Can Any One Help Me With What Would Be An Estimated Project Cost To Set Up A Honda Dealership?

Or If There Are Any Websites Which Would Give Some Idea?

Thanks Very Much
shivam123 is offline  
Old 13th June 2007, 18:49   #7
BHPian
 
Wheeliej's Avatar
 
Join Date: Mar 2006
Location: Bangalore
Posts: 284
Thanked: 47 Times

Someone once mentioned to me that a Maruti dealership in Whitefield area (Mahadevpura) cost the owner 3 crores to set up about 3-4 years ago. This is a full sales/service dealership.
Wheeliej is offline  
Old 13th June 2007, 19:25   #8
BHPian
 
da MotorHead's Avatar
 
Join Date: Sep 2006
Location: New Delhi
Posts: 122
Thanked: 0 Times

Shivam, I'm on the look out for similar estimate and info as well.. But someone from the indstry told me that the smallest dealership/workshop set up would take atleast 25 crores, where the banks can shell out lets say 15c.. This includes stock of cars..

does anyone have more info on this people ?
da MotorHead is offline  
Old 13th June 2007, 19:28   #9
Senior - BHPian
 
manikjeet's Avatar
 
Join Date: Sep 2006
Location: chandigarh
Posts: 1,618
Thanked: 295 Times

when the rhino was just launched my uncle in patiala got a for to open a dealership(which he refused) and the price which was indicated was around a core pretty cheap when compared with above post
manikjeet is offline  
Old 13th June 2007, 20:47   #10
Senior - BHPian
 
Mpower's Avatar
 
Join Date: Mar 2005
Location: Bangalore
Posts: 10,409
Thanked: 1,729 Times

Depends on size of dealership and location.

There are many variables involved. Depends on how big the dealership is going to be and how many bays you want for servicing. Most important is the location. Cost is real estate is a big difference between Kholapur and South Mumbai.

Honda SIEL will give you a list of what kind of tools you need to buy and and they will even specify what color of paint to use.
Mpower is offline  
Old 14th June 2007, 15:15   #11
BHPian
 
Join Date: May 2006
Location: DELHI
Posts: 28
Thanked: 2 Times

my friend has opened a hyundai showroom and workshop total cost what he told me was atleast 15 cr for the land in the metro city 1.5 cr for building around 1 cr for equipments and another 15 cr for the stock they have to keep 45 days stock of all popular colors and varients they have target of 300 to 350 cars per month
aman345 is offline  
Old 14th June 2007, 15:44   #12
Team-BHP Support
 
moralfibre's Avatar
 
Join Date: Dec 2004
Location: MH-12
Posts: 8,433
Thanked: 13,936 Times

How soon do you guys think these people recover the money which is invested?
moralfibre is offline  
Old 14th June 2007, 16:21   #13
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 70,241
Thanked: 298,052 Times

Two threads that may be of your interest:

1

2

Last edited by GTO : 2nd May 2018 at 10:15.
GTO is offline  
Old 14th June 2007, 19:07   #14
Team-BHP Support
 
Zappo's Avatar
 
Join Date: Oct 2005
Location: Hyderabad
Posts: 5,917
Thanked: 2,651 Times

Bah! Previous to this one I was not even aware that there are so many of us who are interested in a dealership/service point business. 3 is a really serious number of threads on a single subject. And Honda looks like a real favorite for service station business. I wonder why!
Zappo is offline  
Old 14th June 2007, 19:35   #15
Senior - BHPian
 
BUSA's Avatar
 
Join Date: Aug 2005
Location: Bombay
Posts: 5,130
Thanked: 20 Times

Quote:
Originally Posted by Zappo View Post
And Honda looks like a real favorite for service station business. I wonder why!
Honda is the only company which doesnot give any discounts at dealer level or otherwise so wont it be the most profitable for the investor
BUSA is offline  
Reply

Most Viewed
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Copyright ©2000 - 2024, Team-BHP.com
Proudly powered by E2E Networks