Most Profitable Dealership Business Ideas in India

on Jun 13, 2024 | 10221 views

Written By: Ujjwala Kanyal

Do you want a profitable dealership but need clarification about the types, trends, and investment issues?!!! If you have interpersonal skills, problem-solving ability, and pro in adapting to varied situations, you certainly have landed on the right page!!!! This blog post is your one step into the exciting world of profitable dealership business ideas in India

Why is the dealership business making heads turn in India?

Nothing happens in one day right, It is the vibe, the trend that makes one thing either bloom or wither, worry not dealership business is here to stay, let’s look at it-

  1. Digitization - with anyone and everyone able to access things online, dealerships are seeing robust growth.
  2. Franchising Echoing- the business giants are interested in growing their business, thus providing dealership opportunities.
  3. Sustainability - a culmination of both eco-friendly and profitable business ideas.
  4. Governmental support as well as Beneficial policy programs - with moderation in FDI policies international brands are venturing into the country. 
  5. Scalability - the dealership business is highly scalable, it can spread its roots across a range of domains.

Top Dealership Business Ideas in India

Automobile Dealership Business Ideas

As the population is increasing the demand for automobiles be it cars, bikes etc is also increasing.

Benefits to the dealer -

  1. Possibility to acquire the highest possible profit margin
  2. Humongous variety  - allows the dealer to cater to a range of automobiles
  3. Growing market - with AI/hydrogen/electric automobiles venturing the demand for an automobile dealer is increasing.

Factors to consider-

  1. Whereabouts - which area, which state all affect the profitability of the dealership business
  2. Payroll cost
  3. Nature of dealership - whether you want to deal with electric vehicles, second-hand, modern, or lavish cars.

Health Sector and Beauty Dealership Business Ideas

Getting influenced by K-drama actors or K-pop singers, following an ayurvedic path or modern medicines, it is an industry laying its roots more strongly than ever before.

Benefits to the dealer -

  • Huge variety - be it baby products, perfumes, hair care, etc.
  • Fierce profit margin- on beauty care products

Factors to consider -

  • Professional product testing - ingredients, authenticity of the ingredients etc.
  • Honest labelling - direction, date of manufacturing/expiration, allergies caused if any etc.
  • Upgrading with new knowledge and trends

Food Dealership Business Ideas

Indians never follow food rather food follows the Indians !!! This business dealership needs no introduction it can reach heights in no time, let’s see why :

Benefits to the dealer - 

  • Flourishing market - due to governments' solid international trade and relationship building, globally the demand for Indian food is increasing.
  • Governmental policies reinforcing factors - like Pradhan Mantri Kisan Sampada Yojana as well as the Make in India trend have changed the entire narrative of the food industry.
  • Digitisation - the e-commerce industry, home delivery, and also online sources have helped this industry grow tremendously.
  • Franchising

Factors to consider -

  • Understand the local/regional market - any area that has a high, diverse population, is easily accessible, etc.
  • Food standards - hygiene, taste, quality, etc.
  • Social media position as well as marketing

Agriculture Dealership Business 

Benefits -

  • The culmination of science as well as technology
  • High-income levels
  • Vastness of possibilities - n number of farming techniques/ pesticides/equipment etc.

Factors to consider -

  • Finance and support - bank, loan, government schemes etc
  • Licensure- from the government
  • Tools and resources - like latest technology, equipment, etc.

Why are statistics making dealership business ideas so desirable?

  1. Automobile dealership -  has gross dealer profit of 3-5%, workshops earnings, accessories etc.
  2. Food and beverage dealership industry - somewhere between 5 to 20 %.
  3. Health sector and beauty dealership industry - according to a report by Forbes India it is between 65-70%—a growth of $ 25 billion by 2025 according to Forbes India.
  4. Agro dealership industry - somewhere between 5 to 15%.

Trends are the new norm today!!!!

Digital skills essential for making your dealership business a massive success

Imagine being at the top of your game but still needing help attracting relevant customers, agencies, potential buyers etc. In today's time, digital skills have become a necessity, let's look at the essential ones :

  1. Ability to create audience-specific content using digital marketing skills
  2. Mastering videography for various potential sources like Instagram, YouTube etc
  3. Understanding customer psychology
  4. Mastering data analytics
  5. Learning how to manage paid marketing

Know how you can lay the foundation of  your dealership business idea

  1. Know your products and also the industry well
  2. Understand the market trend
  3. Choose a competent manufacturer
  4. Complete all legal/business formalities
  5. Have an investor source ready
  6. Select the best possible location
  7. Construct an experienced/ competent team

Some opportunities by top brands

  1. Panera millets - F&B, by Krishna enterprise, benefits - profitable margin, lucrative schemes etc.
  2. Aajivi Pvt. Ltd.- located in Gujarat, agrobusiness company, with expertise in producing high as well as premium quality organic fertilizers. Proving that even our farms can get eco-friendly fertilizer. Benefits - profitable margin - 20-30%, hands-on training as well as support
  3. Papadwale - Company name Bhaktinanand International, with a vision that cannot defy its customers in the long run, certainly working towards bettering the quality, and trust of the product it produces. Benefits - lucrative returns on investment, add and branding etc. FranchiseBazar offers a range of potential options that are offering opportunities do check them out on our official page.
  4. Centuary Mattresses- with over 30 years in the market, it is India’s first brand to get ISO certification on its mattresses. Also it offers a whooping investment range of rupees 40- 50 lakhs.
  5. Keding Enterprises Co Ltd -  you say wood I hear Keding, with over 21 years of golden experience in manufacturing and applying wood as well as products, is offering an investment range of 20-30 lakhs rupees on dealership opportunities.
  6. CBH - with more than three certifications qualified, CBH is the brand providing top-quality fasteners. The benefit of joining them - With the ever-increasing pace of airports, roads, bridges, etc construction, moreover, the demand for hardware supply is high. The DIY wave in India makes self-working on houses etc grow, making the sales of hardware material boost.
  7. Nattus Nuts - established in 2022, with an established brand name called “ Sureka Foods “. Nattus Nuts truly stands out in delivering its customers a nutty delight.

Market being the ultimate growth driver of dealership business in India

  1. Digitization - with massive growth seen in digital marketing, Instagram/facebook ads etc, online businesses are a big hit.
  2. Make in India initiative - motivating young entrepreneurs to venture into different - different business ideas.
  3. Citification - with the younger generation seeking opportunities in urban areas, it is providing businesses with potential candidates.
  4. Cab system - the ever-increasing demand for cab facilities, has made car sales in demand.
  5. Economic expansion - with faster and more secure payments, however, entrepreneurs are confident to start up with their business plans.
  6. With networks scaling up - an increase in post-sales services as well as better assistance has made businesses flourish better. 

Bewildered between franchise and dealership businesses????

As an aspiring entrepreneur, it can be confusing to find another thing on the search engine instead of the word you searched for right ??!!, no doubt franchise has its fair share of benefits but a dealership gives a sense of benefit to entrepreneurs which helps them with a confusion-free exit.

But don’t worry, you can refer to our blogs at FranchiseBAZAR and clear all your doubts.

Conclusion - Did anything click you?!!!!

Business in India and by Indians is not a big thing, dealership business has been there in our country for ages, but what makes every dealer different from others is the level of research they have done, how up-to-date they are regarding their market, their customers, trends, etc., It is all about looking at advantages/disadvantages, benefits/loss and then taking a call.


Q1. Tell me something about the agricultural dealership.

Trade of agricultural products and optimizing the channels of communication between farmers and also service providers

Q2. What factors should I consider when choosing a location for my dealership?

Population density, on-foot customers, and also rent cost - based on tier1,2,3 cities.

Q3. How shall I manage the funding for my dealership business?

Through governmental schemes, bank loans, and also some personal assets.

Q4. What shall be my marketing strategy?

Digital Marketing, content marketing, attractive Google ads, engaging Instagram ads, as well as the go-getter e-mail marketing strategy.

Q5. Why choose dealership over franchise?

You can have ownership in your hands, the investment might not be scary for you rather would be more economical, further benefit inventory optimization, getting ahead with your understanding of your customers, without much negotiations, etc. Your business can adapt well in the market with transformative and latest technologies.

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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