How to start a Hero MotorCorp franchise in India in 2024?

on Jan 17, 2024 | 3377 views

Written By: Yukta Palekar

Hero MotorCorp, formerly known as Hero Honda Motors Limited, is a leading two-wheeler company in India, offering a range of comfortable and stylish vehicles. The company aims to become the largest two-wheeler company globally, setting benchmarks in performance, style, and technology. With 6000 customer touch points, including service and spare parts outlets, authorized dealerships, and dealer-appointed outlets, Hero MotorCorp Franchise has a strong sales and service network. Motorbikes are the major travel mode in India, and with 6000 authorized dealerships, the high demand for this brand has been constant since its inception. As these vehicles are used daily, regular servicing and purchasing of new bikes provide numerous business opportunities. The eligibility and requirements for starting a Hero MotorCorp Dealership are detailed in this article.

Hero MotorCorp Franchise Overview

  • Global Presence and Strong Brand: Recognized as a global motorcycle company. Strong brand name attracting a wide customer base.
  • Extensive Distribution Network: Wide-reaching distribution network, including remote areas. Ensures accessibility and availability of Hero MotorCorp products.
  • Focus on Research and Development: Commitment to continuous innovation in motorcycle designs. Addresses evolving customer demands through R&D efforts.
  • Comprehensive Training Programs: Offers detailed training programs for franchisees and employees. Ensures a thorough understanding of business operations.

Hero MotorCorp Franchise Ownership Process

  • Application Procedure: Visit the official Hero MotorCorp website for the application form. Download and fill out the form with personal and professional details.
  • Application Content: Inquires about franchise purpose, floor area, and investment plan. Requires comprehensive information for evaluation.
  • Submission Options: Application submission can be done personally or via courier. Allows flexibility in the submission process.
  • Direct Contact with the Company: Discourages seeking assistance from third parties or brokers. Encourages direct communication with Hero MotorCorp for transparency.

 

Hero MotorCorp Support and Assistance

  • Provided Services: Hero MotorCorp extends IT support to franchise owners. Offers advertising and marketing assistance for business promotion.
  • Dealership Acquisition Process: Follows a similar process as franchise ownership. Emphasizes direct interaction with the company for a seamless experience.

Hero MotorCorp's global presence, commitment to innovation, and comprehensive support make it an attractive opportunity for potential franchise owners. The direct application process and emphasis on personal contact reflect the company's dedication to transparency and direct engagement.

Hero MotorCorp Franchise Investment

  • Initial Investment: Ranges from 40 to 50 Lakhs. Covers spare parts and interiors.
  • Floor Space Requirement: Approximately 3000 square feet needed for the dealership.

Hero MotorCorp Franchise Training and Brand Compliance

  • Comprehensive Training Program: Hero Moto Corp provides thorough training for franchisee sales and service staff. Focuses on designs and layouts to enhance customer handling skills.
  • Brand-Specific Interiors: Interiors must adhere to Hero Moto Corp brand specifications.

Hero MotorCorp Franchise Return on Investment (ROI)

  • ROI Components: Includes Hero Corp spare parts sales. Workshop revenue contributes to the ROI. Vehicle sales form a significant part of the overall return.
  • Typical ROI Percentage: Averages around 18%. Influenced by market conditions.
  • Market Dependency: ROI varies based on the specific market conditions. Adaptability to the local market is crucial.

Starting a Hero Moto Corp dealership involves a significant initial investment covering spare parts and interiors, with specific floor space requirements. The emphasis on comprehensive training and brand-specific interiors aligns with Hero Moto Corp's commitment to maintaining a consistent brand image.

The expected return on investment, influenced by market factors, is typically around 18%, encompassing various revenue streams.

The Advantages of Owning a Hero MotorCorp Franchise

Hero MotorCorp is the world's largest two-wheeler manufacturer, as well as India's largest two-wheeler manufacturer. Since 1984, the firm has been selling motorbikes and scooters and is well-known among both young and old people.

Hero MotorCorp has a large distribution network in India, with over 6000 franchise dealerships and service centres and five production sites. Between 1984 and 2013, the firm was known for its inventiveness and sold over 70 million two-wheeler automobiles.

Hero MotorCorp controls 46% of the Indian vehicle sector, more than the next three competitors combined. In addition, the corporation supports numerous sports and activities, such as Raman Munjal Vidya Mandir and BML Munjal University.

Hero MotorCorp's Splendour scooter is in high demand, and its motorcycles sell swiftly.

Hero MotorCorp franchise Requirements

  • Optimal Area for Dealership: Required area: 3000 to 4000 square feet. Accessibility is a key consideration for customer convenience.
  • Facility Layout: Ground floor layout includes a large display area, working space, parking, lounge, office area, and showroom. Designed to enhance customer experience and showcase Hero MotorCorp products effectively.
  • Franchise Partner Qualifications: Seeking partners with skills or experience aligned with the vision of an empowered India powered by two-wheelers. Knowledge about bikes and scooters is essential.

Comprehensive Support from Hero MotorCorp

  • Provided Inputs and Assistance: Interior designing inputs for the dealership. Construction support to ensure compliance with brand standards. Site selection guidance for strategic positioning.
  • Marketing and Advertising Support: Assistance in marketing and advertising to boost dealership visibility. Leveraging the strength of the Hero MotorCorp brand for promotional activities.
  • Technical Knowledge Sharing: Imparting technical knowledge to franchise partners for better operational understanding.
  • Administrative Guidelines: Providing administrative guidelines to streamline dealership operations. Ensuring consistency in processes and adherence to corporate standards.
  • Training for Staff: Comprehensive training for all staff members. Enhancing skills and knowledge about Hero MotorCorp products and customer service.
  • Guidance and Assistance: Ongoing guidance and assistance for franchise partners. Ensuring continuous improvement and alignment with corporate goals.
  • Full IT Support: Providing full IT support to streamline dealership operations. Enhancing efficiency in administrative and technical processes.

Staff Requirements

  • Diverse Roles to Fill: Managers, sales coordinators, sales consultants, technicians, supervisors, workshop managers, service advisors, salespersons, and store in charge. Adequate staff for store maintenance and upkeep.
  • IT Support for Staff: Full IT support extended to all staff members.

Hero MotorCorp emphasizes a holistic approach to dealership management, requiring an optimal facility and qualified franchise partners. The extensive support provided, ranging from facility setup to staff training, highlights the commitment to the success of the dealership. Full IT support and the focus on empowering partners contribute to a comprehensive and well-supported business model.

Two-Wheeler Market Growth in India

  • Rapid Market Growth: 21.2 million two-wheeler unit sales in 2017. Anticipated growth to 26.6 million by 2025.
  • Factors Driving Growth: Poor public transportation options. Easy availability of EMI options.

Two-Wheeler Ownership Landscape:

  • Low Franchise Business Investment: Low investment in two-wheeler franchise business. 49.5% of Indians own two-wheelers.
  • Growth Drivers: Increased traffic and incomes. Ease of obtaining EMI contributing to ownership.

Service and Maintenance Demand:

  • Growing Need for Service: Rapid two-wheeler growth leads to increased demand for service and maintenance. 95% of roadside garages monopolize after-sales service.
  • Challenges in After-Sales Service: Dependable service facilities lacking in the market. Need for qualified personnel and high-quality replacement components.

Technology Advancements and Franchise Opportunities:

  • Impact of Technology: Technology advancements drive the need for quality franchises. Local garages face challenges with the introduction of BS6 engines.
  • Opportunities for Franchisees: New and sizable market. Crucial for franchisees to establish a presence and seize opportunities.

 

Doctor Garage India: A Successful Franchise Model:

  • Franchise Expansion: Doctor Garage India signs up almost 81 franchises in two years. Pan India presence with widespread success.
  • Franchise Offerings: Offers franchise businesses under 10 lakhs. Provides authorized service centre franchises.
  • Top Franchise Business: Recognized as one of the best two-wheeler service providers in India. Success attributed to its affordable franchise options and quality service.

The Indian two-wheeler market's rapid growth presents significant opportunities for franchise businesses. The increasing demand for service and maintenance, coupled with technological advancements, creates a favourable environment for quality franchises. Doctor Garage India stands out as a successful franchise model, offering affordable options and quality service across the country.

Conclusion  

India's machine assiduity is growing due to the increasing demand for two-wheelers due to their convenience, affordability, and environmental benefits. Hero MotorCorp Limited, the largest manufacturer of two-wheelers, is a leading player in this demand. Established in 1984, it has a 46-shareholding presence in India and internationally. With a return on investment of 19 per annum, Hero MotorCorp treats its guests as icons, demonstrating its commitment to client satisfaction. FAQs

1. What is the process for getting a Hero Service Centre dealer? To gain a hero MotorCorp dealership, first go to the company's sanctioned website. also, you must fill out the form with your particular and professional information. The operation form must also be submitted, either in person or via courier service. 2. How much does the investment to open a bike dealership in India? In India, the investment necessary to operate a bike dealership generally varies from 30 to 50 lakh rupees. 3. Is idol MotorCorp ballot a successful business? Yes, copping a hero MotorCorp dealership has several advantages. In the case of Hero MotorCorp goods, the return on investment is estimated to be roughly 18. 4. What's India's finest motorbike brand? Hero MotorCorp is maybe India's topmost and most popular motorbike brand. Millions of people have bought motorcycles from this brand throughout the times.

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.

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