How much does it cost to set up a car dealership in India?

GTO · 4th October 2004, 12:48

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

_Crazi4Speed_ · 4th October 2004, 12:57

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?

bhp · 4th October 2004, 13:22

hey how much does an honda dealership cost in mumbai and the cost of opening an workshop of honda .
thanks
monty

libre sito · 4th October 2004, 13:36

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.

ajmat · 4th October 2004, 14:03

What about working capital to stock cars and parts ?

shivam123 · 13th June 2007, 17:56

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

Wheeliej · 13th June 2007, 18:49

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.

da MotorHead · 13th June 2007, 19:25

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 ?

manikjeet · 13th June 2007, 19:28

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

Mpower · 13th June 2007, 20:47

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.

aman345 · 14th June 2007, 15:15

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

moralfibre · 14th June 2007, 15:44

How soon do you guys think these people recover the money which is invested?

GTO · 14th June 2007, 16:21

Two threads that may be of your interest:

1

2

Zappo · 14th June 2007, 19:07

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!

BUSA · 14th June 2007, 19:35

Quote:

Originally Posted by Zappo

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

4th October 2004, 12:48	#1
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 71,711 Thanked: 320,007 Times View My Garage	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
	(4) Thanks

4th October 2004, 12:57	#2
_Crazi4Speed_ 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?
	(1) Thanks

4th October 2004, 13:22	#3
bhp BHPian Join Date: Jul 2004 Location: lokhandwala mumbai Posts: 839 Thanked: 170 Times View My Garage	hey how much does an honda dealership cost in mumbai and the cost of opening an workshop of honda . thanks monty
	() Thanks

4th October 2004, 13:36	#4
libre sito BHPian 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
	() Thanks

4th October 2004, 14:03	#5
ajmat Team-BHP Support Join Date: Feb 2004 Location: Bangalore Posts: 15,163 Thanked: 31,014 Times View My Garage	What about working capital to stock cars and parts ?
	() Thanks

13th June 2007, 17:56	#6
shivam123 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
	() Thanks

13th June 2007, 18:49	#7
Wheeliej BHPian 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.
	() Thanks

13th June 2007, 19:25	#8
da MotorHead BHPian Join Date: Sep 2006 Location: New Delhi Posts: 121 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 ?
	() Thanks

13th June 2007, 19:28	#9
manikjeet Senior - BHPian Join Date: Sep 2006 Location: chandigarh Posts: 1,617 Thanked: 296 Times View My Garage	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
	() Thanks

13th June 2007, 20:47	#10
Mpower Senior - BHPian Join Date: Mar 2005 Location: Bangalore Posts: 10,399 Thanked: 1,735 Times View My Garage	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.
	() Thanks

14th June 2007, 15:15	#11
aman345 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
	() Thanks

14th June 2007, 15:44	#12
moralfibre Team-BHP Support Join Date: Dec 2004 Location: MH-12 Posts: 8,519 Thanked: 14,225 Times	How soon do you guys think these people recover the money which is invested?
	() Thanks

14th June 2007, 16:21	#13
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 71,711 Thanked: 320,007 Times View My Garage	Two threads that may be of your interest: 1 2 Last edited by GTO : 2nd May 2018 at 10:15.
	() Thanks

14th June 2007, 19:07	#14
Zappo Team-BHP Support Join Date: Oct 2005 Location: Hyderabad Posts: 5,915 Thanked: 2,746 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!
	() Thanks