TVS Dealership Franchise Guide: How to Apply, Cost, Profit & Margin
An accepted franchise model in today’s competitive business environment becomes a safe route and scalable way toward success.
The TVS dealership franchise is an opportunity for entrepreneurs to gain entry into the booming automotive industry.
TVS Motor Company is one of the largest manufacturers of two-wheelers in India.
The company is in an excellent position With a strong market presence, highly technologically advanced products, and a well-established customer base.
The dealership franchise of TVS is attractive for investors who want to invest seriously in a business that has immense growth potential.
Introduction of TVS Dealership Franchise
The high growth rate in the Indian two-wheeler market is driven by increased demand for affordable transportation, urbanization, and the rise in disposable income.
TVS Motor Company is one of India’s third-largest two-wheeler manufacturers, considering that it caters to a significant range of vehicles from mopeds to the most expensive motorcycles.
The article will outline the main attributes of the TVS dealership franchise such as investment requirements, profitability, product range, and the advantages of the franchise.
This guide will give you some worthwhile insights into the TVS franchise model as long as you are an aspiring entrepreneur or already a business owner looking to diversify.
About TVS Motor Company
TVS Motor Company has a rich history as it was founded in 1911 as a transportation company.
Within several decades, the brand had grown to become one of India’s leading players in the two-wheeler market and has also achieved great success over the years.
- Third-biggest two-wheeler firm: TVS is India’s third-largest two-wheeler company with consolidated revenue of ₹319.7 billion.
- Annual sales: Although TVS has crossed 3 million units in annual sales, it can still hold an important market share in the domestic and international markets.
- Production capacity: TVS has an annual production capacity of over 5 million vehicles and hence one of the well-established players in the industry.
Today, TVS boasts over 4,500 touch points across India dealerships and service centres to spare parts outlets and also exports to over 60 countries.
It has indeed become an international brand known for its quality and innovative products.
Key Details of the TVS Dealership Franchise
To become an owner of a TVS dealership franchise, it’s essential to have a clear understanding of the investment, location, and operational requirements involved.
Here’s some detailed information that a potential franchisee should consider:
Brand and Industry: TVS Motor Company is a major competitor in the two-wheeler market, offering a wide variety of products to meet the diverse demands of its consumers.
Investment Scale: To establish a TVS automobile dealership, the total investment can vary from ₹30 lakhs to ₹50 lakhs, influenced by factors such as location, showroom size, and operational scale.
Profit Margins: Franchise owners of TVS can benefit from substantial profit margins ranging from 5% to 15%, which depend on various elements like vehicle sales, after-sales services, and spare parts sales.
Also read: 30 Most Profitable Franchise Opportunity in India
Space Requirements of TVS Dealership Franchise
- Minimum showroom frontage: 8 to 11 meters
- Minimum showroom area: 70 to 93 square meters
- Workshop area: 56 to 74 square meters
- Spare parts area: 9 to 14 square meters
- Water wash area: 7 to 9 square meters
- Storage space that is adequate for spare parts and accessories
Industry Overview and Market Potential
The two-wheeler market in India is expanding rapidly due to urbanization, high fuel prices and the need for economical transportation.
With sales of over 21 million two-wheelers a year, the industry is booming. Electric vehicles (EVs) and government programs that encourage “green” and cost-effective choices will determine the direction of this industry.
Two-wheelers are expected to grow strong because people are going to look for cheaper and greener transportation. This offers a great investment for possible investors, in a TVS dealership, and takes advantage of the growing need for dependable, flexible two-wheelers.
Extra Requirements: Building ownership would be preferred; however, a TVS dealership could also be established in leased or rented areas complying with the infrastructure standards of TVS.
TVS Dealership Franchise Product Range
One of the best things about having a TVS dealership franchise is that you have a lot of products to offer so you can reach out to all types of customers. TVS offers a comprehensive lineup that includes:
- Mopeds: TVS XL100, the usual one in villages and semi-urban areas.
- Scooters: A range of scooters like Jupiter, NTorq, and Scooty Pep+ for urban commuters and young buyers.
- Motorcycles: The Apache series for performance freaks, the Star City+ for everyday drivers, and the Radeon for something cool and cheap.
- High-end bikes: TVS also has performance bikes like the Apache RR 310 for people who want that high-end experience.
The large variety of products that TVS dealerships provide allows franchise owners to tap into a wide range of target markets and make the most of their potential revenue.
Unique Selling Points (USPs) of TVS Products
- Innovation and technology: TVS vehicles are so unique, that they always seem to be the first ones to do something with performance, fuel economy, or safety.
- Quality and reliability: TVS is a really old and conservative brand, but its parts are cheap and the bike itself lasts a long time, so that appeals to the conservative consumer.
- Eco-friendly options: TVS has also followed the green trend with EVs such as the TVS iQube for the green consumer.
Franchise Models Offered by TVS
TVS dealership franchise models are available to potential franchisees, all aimed at different business atmospheres and target audiences. Here are the main dealership models:
Full Dealership (Sales, Service, and Spares – 3S model):
- This is the biggest one, they have new car sales, service, and parts all in one place.
- Great for those entrepreneurs with a lot more capital and room to invest.
- Provides multiple revenue streams, ensuring a continuous cash flow.
Service-only Franchise: Service-only Franchise:
- Good for someone who wants to concentrate on after-sales services and spares.
- Not as much money and as much land as a whole dealership.
- Perfect for places where there are already a lot of vehicles to be serviced.
Spare Parts Outlet: Spare Parts Outlet:
- A lower investment model focused solely on the sale of genuine TVS spare parts.
- Good for smaller towns or semi-urban areas, where there is a great need for parts.
Cost Breakdown of Setting Up a TVS Dealership Franchise
The total amount for the TVS dealership franchise cost in India comprises of various parameters. Here’s a detailed breakdown:
- Land and Building: Land investment for the dealership complex be it owned or leased or rented. Building construction/alteration to comply with TVS CI standards.
- Tools and Equipment: Workshop tools and equipment, lifts, diagnostic shit, service equipment.
- Initial Inventory: To always have cars, parts, and accessories available to sell.
- Franchise Fees: A one-time franchise fee is the cost of joining the TVS family and utilizing their dealership network.
- Miscellaneous Expenses: Costs for staffing, marketing, and operational setup.
30 lakhs to 50 lakhs on average which of course varies depending on the size of the dealership and its location.
Profit Margins and Return on Investment (ROI)
A TVS dealership franchise profit margin makes a good amount of money anywhere from 5% to 15% on the product and services depending on what they are. Many factors go into how profitable the dealership will be, such as:.
- Location: A sales volume for a dealership in a heavily populated city will be much greater than one in a rural area.
- After-sales services: That and the fact that the constant maintenance and servicing brings in a steady flow of money since everyone needs their car periodically serviced.
- Spare parts: One of the best ways to make money is by selling real OEM parts because people want to know that they are getting good parts for their cars.
The average franchisee can expect to see a full ROI within 2-3 years, again that depends on operational efficiency and market conditions.
Check out this: 5 Best ways to Promote and Market your Franchise
Space Requirements for a TVS Dealership Franchise
The amount of space needed to support the various functions of a TVS showroom is one of the main factors in establishing a TVS dealership franchise. Here’s a breakdown of space needs:
- Showroom: It should be open and spacious with a frontage of 8 to 11 meters and a total area of 70 to 93 square meters. That way you can display all the TVS vehicles.
- Workshop: Service and maintenance should have plenty of room, and the shop area should be 56 to 74 square meters.
- Spare Parts Storage: At least 9 to 14 square meters should be used to store spare parts so that it is easily accessible to the service staff and the customer.
- Water Wash Area: 7 to 9 square meters of space to be used exclusively for washing and cleaning of the vehicle.
Choosing the right location is crucial to the success of your dealership. A high-traffic area with good visibility and accessibility will attract more footfall, leading to higher sales and service volumes.
Benefits of Investing in a TVS Dealership Franchise
The TVS dealership franchise is very attractive to investors because there are so many benefits to having one.
- Established Brand: TVS Motor Company has that built-in customer base and brand loyalty, that is, a history of trust and quality.
- Diversified Revenue Streams: Your dealership will have a stable cash flow with revenue coming from new car sales, service, and parts.
- Support from TVS: The training for franchise owners includes everything from technical training for the people in the workshop to sales training for the dealership team. TVS even offers continued operational support to keep the business running smoothly.
- Marketing Assistance: TVS also provides you with marketing and promotional assistance to get customers, and expand your business.
- Scalability: The more your dealership prospers, the more outlets you can open up and make even more money.
Documents Required for TVS Dealership Franchise Setup
If someone wants to apply for a TVS franchise they need to have their papers ready. So, the documents required for the TVS Dealership franchise are:
- Identity Proof: Passport, voter ID, or Aadhaar card.
- Business License: Proof of business registration and compliance.
- Financial Proof: Bank statements, and financial records to prove investment capacity.
- Land/Building Documents: Ownership or lease agreements for the proposed dealership space.
How to Apply for the TVS Dealership Franchise
Applying for a TVS Dealership franchise is a straightforward process. Here’s a step-by-step guide:
- Submit Inquiry: Visit the TVS Motor Company website and fill out the franchise inquiry form.
- Prepare Documents: Collect all the papers through, IDs, bank statements, and land agreements.
- Approval Process: TVS will process your application and perform a background investigation. And then you get the green light.
- Post-Approval Support: TVS fully supports the store once it is approved (training the staff, setting up the operation, and marketing).
FAQs of TVS Dealership Franchise
1. How much does a TVS Dealership franchise cost to start up?
It is different depending on the location and dealership, but the start-up cost. That average cost includes land, building setup, inventory, and franchise fees.
2. How long does ROI take on a TVS dealership?
Typical ROI for franchisees is 2-4 years, but that of course varies on location and how the business is managed.
3. Does TVS provide training for dealership staff?
Yeah, TVS has an excellent training program for every type of person, as well as the sales force.
4. What are the space requirements for a TVS dealership?
TVS needs its showroom workshop and spare parts. Typically, a dealership needs 70-93 sq. mts. for the showroom, 56-74 sq. mts. for the workshop, and 9-14 sq. mts. for the spare parts area.
5. Can I manage a TVS showroom along with my business?
But yes TVS showroom along with your own business, there is nothing like a nice steady income with very little investment in infrastructure.
6. Does TVS assist with marketing and promotions?
TVS does that yeah and they do a lot of marketing support promotional stuff and campaigns to get sales and visibility for the brand at your dealership.
Conclusion
The automotive industry will forever be expanding and with the purchase of a TVS dealership franchise, entrepreneurs can capitalize on a very profitable and scalable business.
TVS is already a well-known brand and they offer a wide variety of products and a very large support system so that the owner of the TVS franchise will have everything and know what to do to make the franchise a success.
If you’re looking for a business venture with solid returns and long-term potential, the TVS dealership franchise is an opportunity worth considering.
