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Hero Moto Corp Dealership Investment

by Priya Agarwal

Hero Moto Corp is one of India’s most leading two-wheeler companies known for affordable two wheelers and exceptional sales and services. It not only provides style but also comfort is ensured.  The company was formerly known as the Hero Honda Motors Limited. Interested in owing a profitable Hero Motocorp Franchise business ? Read more details about the application process, requirments and Hero Motocorp Dealership Investment in this article.

Hero Motocorp Franchise  

The company’s main aim is to become the largest two-wheeler company not only in India but worldwide. It aims at setting a benchmark in performance, technology, and style. The company has an extensive sales network throughout the country and the network provided by Hero Moto Corp spread across 6000 customer centers. 

 

The touch points included are service and spare parts outlets, authorized dealerships, and dealer-appointed outlets across the country. 

Hero Motors provides the best opportunity to become its channel partner. If you are interested in starting a Hero Motocorp Franchise business,then read more about the cost of the franchise, profit, investment required etc in this articlte.

 

In this article, you will get to know about the eligibility and requirements for a Hero Moto Corp Dealership, Hero Moto Corp Dealership investment, and much more.

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Is Hero Moto Corp Franchise Dealership Profitable?

The automobile industry of India is the 4th largest industry worldwide. The sales of the automobile industry increase rapidly every year with an increase of 9.7% every year.
The two-wheeler segment has dominated the Indian automobile industry because of the wide use of such vehicle and lower price. India being a developing country, two wheelers dominates the auto industry due to its affordability, growing middle-class people and young population.

When we talk about the international, market India stands as a leading automobile exporter with a stable export growth. The automobile exports by India grew 26.57 percent during April-July 2018. The Compound Annual Growth Rate (CAGR) of 3.05 % is expected to grow in the next decade.  

Hero Moto Corp is the market leader in India and expanding its export worldwide. If you are looking for franchise business in automobile industry then no doubt, the franchise dealership of Hero Moto Corp Two wheeler is one of the best profitable businesses in India. 

Why Hero Moto Corp Franchise Dealership?

The Hero Moto Corp was set-up and established in the year 1984. It was the time when people in India were not so much exploring to two-wheelers and also not used to motorcycles. Today Hero Honda is the largest selling Motor cycle company in India and taking a franchise of Hero Motocorp is profitable.

 

Company’s flagship vehicle, Hero Honda is widely known as best performing motorcycle in the country. The market owned by the Hero Moto corp. owes a massive 47% market share in India.  Other factors are:

·       33 years of expertise in the automobile industry by the Hero Moto Corp brand.

·       Hero Moto corp. is the country’s largest two-wheeler manufacturer and stands to be the most reputed of all.
·       Modern manufacturing units
·       The motorbikes produced by Hero Motocorp are fuel-efficient and require low maintenance
·       Hero Moto Corp provides a wide range of models. 19 models of Motorcycles and Scooters in the price range of Rs. 55K to Rs. 1.20 Crores.
·       6000 service centers across the country.

 

Investment Required for Hero Moto Corp Dealership

TThe cost of starting a Hero Two Wheeler Dealership varies according to the location and cities. Apart from the different land cost, the minimum investment required to set-up a Hero Motocorp. dealership is INR 50 Lakhs and it may increase according to the locations and cities.

Franchise Requirements.

There are certain requirements for the setting- up of the franchise, Dealership, Agency or Sub dealership of the Hero Honda .The franchise details and requirements are given below-

Area Requirement 

 

The Hero Moto Corp two wheeler service centers should have a minimum area of 3000 – 4000 square feet. The space should include a lounge for the customers, Separate area for the employees, parking space for bikes, space for display bikes, an office and other areas as provided under the franchises agreement is needed. 

Return on Investment (ROI)

Return on Investment (ROI) is a kind of performance measure and closely related to the location and city. It provides the amount of return that is expected on the amount invested. For Hero Motocorp Return on Investment (ROI) expected is 19% on sales or services.

It should be noted here that the location for the unit that is franchised outlet should be set- up only on the ground floor. The minimum frontage area should mandatorily be around   50-70 feet for setting up the Hero Moto Corp Showroom.

How to Apply for a Hero Moto Corp dealership?

Certain procedures need to be followed when a person intends to apply for the Hero Moto Corp dealership. Hero Dealership Application Form is available online. The steps that need to be followed are listed below-

Step:1 log in to the official website of Hero and download the dealership application form available for Franchise.

Step:2 Fill up all the details that are required and the agreement form which is mentioned.

Step:3 all the details should be true and best to your knowledge. Details include where you are seeking the dealership, the floor space identified for the Franchise, the investment plans for the Franchise and any other details that are required as per the application form of the Hero Moto Corp Franchise.

Step:4 Once all the details are filled in, check the correctness of the details. Prepare the form to send it by courier service to the Hero Moto Corp office. You can also submit the form manually.

Franchise Opportunities

The Hero Motocorp Frnachise department  has listed certain areas for the expansion of networks that include showrooms and service centers. The expansion locations are listed below-

North India
The areas that are expected to expand in the north are Jammu & Kashmir, Punjab, Haryana Delhi, Uttar Pradesh, Himachal Pradesh, and Uttaranchal

South India
Places that are expected to expand in the south are Kerala, Karnataka, Tamil Nadu and Andhra Pradesh

North East
Places proposed to expand in the east are listed below-
Assam, Meghalaya, Mizoram, Sikkim, Odisha, Tripura, Arunachal Pradesh, Manipur, Nagaland and West Bengal.
Western India
Places expected to expand in the west are listed as under-
Goa, Gujarat, Maharashtra and Rajasthan.

Central India
Places to expand in central India are Madhya Pradesh, Chhattisgarh, Bihar and Jharkhand.

Union Territories
The Union Territories that are expected to set-up Hero Motocorp Dealership are Chandigarh, Pondicherry, Lakshadweep, Daman, and Diu

The Services and Training for Hero Moto Corp Franchise
The service and training provided by the Hero Moto Corp company for setting up the Showroom are listed below:

  • Supports the franchise in various undertakings such as setting up the design and construction.
  • It also provides assistance in a wide range of things such as business development, i.e. site selection provides necessary operational support for the franchise.
  • Hero Motocorp also provides marketing support for local as well as regional advertising.
  • Technical knowledge and administrative assistance shall be provided to the franchise in accordance with the agreement signed between the franchise and the company.
  • Proper training is also given to all crew members and franchisees.
  • Expert guidance from Head Office shall be provided to the franchise
  • IT Support.

FAQs
Some of the questions that may arise in the minds of people before obtaining the Hero Moto Corp Franchise are mentioned below-

How is the Hero Motocorp Franchise Business ?
It is one of the best Franchise businesses available in Automobile sector.

How much Investment is needed for the Franchise?
Minimum INR 50 Lakhs

Contact Number of Hero Moto Corp:
1800 266 0018
For more details you can visit the official website of the company https://www.heromotocorp.com/en-in/

What is the area Required for Hero Moto Corp Franchise?
Around 3000 square feet

Present Scenario of Hero Motocorp Franchsie
The joint venture between Hero & Honda no longer exists. So, the dealership will be approved as a dealer of Hero Moto Corp.

The company has a vast network of dealers and franchise,but there may be areas where the company no presence 

.Dealership opportunities are opened when… 

1. The existing dealer close his business

2. The company terminates the existing dealership

3. The company decides to appoint dealers in the new areas to expand its network.

 

Types of Franchise
 Based on the locations and investment company provides three types of business opportunities.

 

        1.    Authorized Representative: Meant for small towns

          Pro:

1. Maintain less stock of vehicles (25-50) and spare parts

2. Low Cost of investment (50 lacs to 1 crore)

3. Fast Approval

4. Easy to Manage

 

Cons:

1. Not an authorized dealer or service center of Hero Corp Motor

2. No Company Certification

3. Required to buy stocks from the dealer the areas and not from Hero Moto Corp

4. Competition from main dealers.

5. No scope for incentives.

 

2.Authorized Service Center:  Meant for small cities and municipality areas.

 

Pro:

1. Medium stock maintenance (100–150)

2. Investment in the range of 1 to 1.5 Crore

3. The company authorized Service center.

4. Additional income from the sale of the vehicle

 

Cons:

1. Not a dealer of the company and required to buy stocks from the dealer and not from the Hero Motor Corp

 

3.Dealership: Meant for cities

       Pros:

1.     Highest Margin

2.   More Sales & More Income

3.   Fully certified by Hero Moto Corp

4.   Additional income and incentives

5. The company paid international holidays

Cons:

1.    High investment (Minimum 5 Crores)

2.   Required to maintain top stocks (1000–2000)

3.   Limited availability

Hero Moto Corps Franchise Contact Details

For any inquiry about the dealership of Hero Moto Corp Here toll-free number is mentioned here- 1800 266 0018. Full and complete address of Hero Moto Corp Ltd. corporate office is mentioned below

Hero MotoCorp Ltd.
34, Community Centre, Basant Lok, Vasant Vihar,
New Delhi – 110057, India.
Tel: +91-11-26142451, 26144121
Fax: +91-11-26143321, 26143198
Official Website: https://www.heromotocorp.com/

Conclusion

We hope you are aware about the steps and procedure that need to be followed for getting a Hero Moto Corp franchise in India.  If anyone intends to start an automobile franchise then Hero Moto Corp is one of the best options to consider especially for the dealership. For any doubt/ queries, you can always contact the helpline/ customer care number mentioned above. The service provided by the company is exceptional and they seek to help people all over regarding two-wheeler functioning.

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