Written By: Gouri Ghosh  

India has a changing market in the automobile sector. Many people are choosing EV cars and bikes due to the increase of the cost of petrol and diesel.  So it is not a short-term incident. It will play a good role for the future because it is affordable and suitable for daily use.

You will get different kinds of policies from the government regarding EV uses.Due to the increase of car fuel people are thinking about how to save money. 

As an investor, this would be a great opportunity for you. Because the dealership sectors are in their early stages, this indicates low competition in the market. This would allow you to start and grow a successful dealership before the competition increases. From this blog, you will learn about the EV market, different kinds of EV dealership options which are available in the Indian market, how much you need to invest, what the profit will be, and more.

Overview of the EV Market in India

The EV dealership market is small compared to other sectors in India. So the growth rate of this sector is very high. Every year, lots of people want to invest in an electric vehicle franchise because it is cost-effective and easy to maintain.

Key Segments in the EV Market

Electric Two Wheelers

These are currently in high demand. If your target audience includes daily commuters, then two-wheelers are a good business opportunity for you.

Electric Three Wheelers

These are mostly used for commercial purposes. Their demand remains consistent because businesses use them to run their daily operations.

Passenger Electric Cars

These are becoming popular among urban users. 

Commercial Electric Vehicles

 These vehicles are used by logistics and e-commerce companies for making deliveries. With more and more people opting for online shopping, this is a highly promising area for future growth.

 EVs in India will see a substantial rise in the next 5-10 years. EVs are not a trend; they are one of the most promising new dealership opportunities in India right now.  

Types of EV Dealership Opportunities

When you are thinking of investing in any dealership you have to research various types of options which are available in the market.It is true that you choose the dealership category as per your investment range but it is important to know the variety before investing.

Electric-Two-Wheeler-Dealerships

This is the most common type of dealership opportunity for new investors. In case you are new to the dealership business, this is the safest option for you.  

• High Demand in Cities and Semi-Urban Areas
• Investment is Lower Compared to Cars
• Faster Sales Cycle to Ensure Quicker Payback of Investment

 Students, office-goers, and delivery persons are using electronic scooters. It confirms that you can easily get customers from your business.

Electric Car Dealerships

This option is a bit premium and requires a lot of investment. This option would be best suited for you if you are planning to set up a long-term business.

• High investment required for setting up the business and inventory
• High sales driven by brand names (customers trust brands)
• High sales value, which translates into good revenues from each customer

This option would be best suited for you if you are planning to set up a dealership business on a large scale.

Commercial EV Dealerships

This option deals in sales to businesses rather than individuals. If you are comfortable dealing with businesses, then this option would be highly profitable for you.

• The target audience would include logistics providers and delivery companies
• You would be able to earn high revenues due to bulk orders
• The demand for electric vehicles would increase in the coming days due to the rise of e-commerce websites

You would be able to grow faster in this option if you have good connections.

EV Charging Station Franchise

This is a bit different from the normal dealership, but it’s a good opportunity in the EV industry.

• Supports the growing number of EV users
• Can be combined with your dealership to increase income
• Provides revenue for a long time.

Now people love to buy EV vehicles so the demand for the charging stations are increasing. So you can earn a good revenue from this dealership.

Leading EV Brands Offering Dealership Opportunities in India

While exploring EV dealership business opportunities in India, it is vital to select a brand that can be a perfect fit for your business. Each brand has a different investment level, consumer base, and profit margin. It is imperative to select a brand that suits your pocket as well as your business requirements.

Ola Electric

It is a famous brand that deals with large scale shooters.

Investment: Eighty lakh to one crore

Model: Hybrid 

Position: Urban markets

You need to know:

• You can enjoy a high level of brand awareness as well as marketing
• You can expect a high number of customers walking into your dealership due to brand popularity
• The brand handles many aspects of the business; hence, it is imperative to adhere to its processes
• Sales are entirely dependent on volume; hence, it is vital to generate a high volume of monthly sales

Best for you if:

You are looking to expand your business in a high-demanding EV market.

Ather Energy

This is a premium brand for EVs.

• Investment: This would require an investment of around ₹1 crore or more.
• Business Model: Exclusive experience centers.
• Market Position: This would be a premium electric scooter.

What you have to learn:

• Your showroom would play an important role.
• You would earn more per customer.
• You would earn more through accessories and service too.

Best for you if:

You would want a premium dealership and would want to target premium customers instead of just focusing on sales volume.

Tata-Motors

This is one of the most trusted brands .

• Investment ranges: three  to eight crores
• Business Model: Full dealership
• Market Position: Leader in EV car business

Know before invest:

• You will require a high amount of investment and space
• You will earn money in the future, not in a short time
• Maintenance will be a key factor in earning money
• This is a trusted brand, and this will help in selling cars

Best for you if:

You want a business in dealerships.

Mahindra-Electric

This brand focuses on commercial EVs vehicles.

• Investment: twenty five lakh to forty lakh
• Market Position: Strong in commercial EV segment

What you know:

• You will mostly work with business clients instead of individual customers
• Working with bulk orders can help you earn more revenue
• You can earn high returns in a short time through bulk orders
• You can get regular income through service contracts with business clients

Best for you if:

You are comfortable working with business clients and want high ROI through bulk orders.

Hero Electric

It is a good brand offering affordable electric scooters for customers.

• Investment: forty lakh to sixty lakh
• Business Model: Dealer based network
• Market :  Tier 2 and Tier 3 cities

What you should understand:

• You will be catering to price-sensitive customers
• Affordable vehicles will allow you to sell more units each month
• The sales will be consistent because people use these vehicles daily
• You will have to focus on volume sales rather than high margins

Best for you if:

You are looking at steady business in small cities.

Ampere-Vehicles

This is a budget-friendly EV brand.

• Investment: twenty lakh to fifty lakh
• Market Position: Affordable EV segment

You have to know before invest:

• You can start it with low investment 
• In small cities sales are based on volume of the customers.
• It is easy for you to enter the market for EVs with this brand.

Best for you if:

You are starting your first dealership and want to enter the market with a low budget.  

Investment and Cost Breakdown

Before you choose from different new dealership opportunities, you need to clearly understand how much you will invest and where your money will go. This will help you plan better and avoid unexpected costs.

Typical Investment Range

Key Cost Components

Profit Margins in EV dealership

Profitability is not just about selling vehicles, as it is also influenced by various income streams and how you run your business.

Expected Margins

You should understand that vehicle sales alone may not give you high profits. Your real earnings improve when you focus on additional income sources.

Break-even Timeline

If you manage your operations well, you can recover your investment within this timeline.

Conclusion

India has adopted electric vehicles into daily life. As you've seen in this blog, the electric vehicle market is growing rapidly, creating dealership business prospects for new and experienced entrepreneurs.

If you are looking to start a dealership business, then electric vehicle is one of the most profitable business decisions for you right now. You have a range of choices depending on your budget, from opening a two-wheeler dealership to opening a car dealership, and from there, even to opening a commercial electric vehicle dealership. The most important thing is to select a brand and focus on growth.

If you are looking to start a business, then by joining the electric vehicle dealership business, you will have a huge advantage. You will have time to grow and establish yourself as a brand, and by that time, the market will have grown as well. If you plan your business well and focus on growth, then your electric vehicle dealership business will become a profitable and future-ready business.

Faqs

1. Do I need prior automobile experience to start an EV dealership?

No, you don’t always need prior experience. Most EV brands offer training programs to guide you through the process of getting into the business.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.