Why Maruti Suzuki Automotive Is The Best Automotive Dealership Franchise
Written By: Shruti Agrawal
Gear up, seize the wheel, and fasten your seatbelts because the automotive world is about to witness the most thrilling opportunity in 2024! The Maruti Suzuki Automotive Dealership franchise is not just about selling cars; it’s about steering dreams and igniting passions.
Buckle up for success and embrace the Maruti Suzuki Automotive Dealership franchise that doesn’t just promise growth—it accelerates it. Whether you're an automotive enthusiast or a savvy entrepreneur, this is your chance to revitalize the industry and drive your success forward.
About Maruti Suzuki Automotive Dealership Franchise
Maruti Suzuki is a subsidiary of Suzuki Motor Corporation, Japan, and is India's largest passenger car maker. Established in 1981, the company has played a significant role in making cars accessible to everyone in India.
The brand is engaged in the manufacturing and sale of passenger vehicles in India.
The brand operates through its ARENA and NEXA channels, offering hatchbacks, sedans, MUVs, and SUVs. Additionally, it has a certified pre-owned car channel called TRUE VALUE.
Maruti Suzuki has a wide network of authorized dealerships across the country, providing sales and service support.
Maruti Suzuki Automotive Dealership Franchise's Model
The company welcomes new partners to join its network of authorized dealers and is open to adding more partners to its journey of growth.
Maruti Suzuki grades its dealers on various benchmarks such as sales volume, service performance, manpower, financial management, spare parts handling, and accessories.
Some of the key requirements to own a Maruti Suzuki Automotive Dealership Franchise:
- Area: You must have a minimum built-up area of around 4000 sq. ft. for the dealership.
- Skills or Experience: The franchise owner must possess strong entrepreneurial and innovative skills, as well as the confidence to bring a significant change in the business.
- Training: Maruti Suzuki conducts regular training for the dealer staff to ensure the quality of service offered.
- Minimum Staff Requirement: Approximately 40-50 personnel are required to run the dealership.
- Cost: The cost for opening a Maruti Suzuki dealership franchise is around INR 50 to 70 lakhs, which may vary depending on the location.
Steps To Follow To Own A Maruti Suzuki Automotive Dealership Franchise
Research and Preparation
- Research: Understand Maruti Suzuki's dealership model, their requirements, and the automotive market in your target area.
- Financial Preparation: Assess your financial capabilities and prepare a detailed business plan, including investment estimates.
Contact Maruti Suzuki
- Reach Out: Contact Maruti Suzuki's corporate office or their dealership development department to express your interest in becoming a franchisee.
- Application: Obtain and fill out the dealership application form provided by Maruti Suzuki.
Location and Infrastructure
- Location: Identify potential dealership locations complying with Maruti Suzuki's guidelines (prime location, accessibility, etc.).
- Infrastructure: Prepare the infrastructure as per Maruti Suzuki's standards and specifications.
Compliance and Legal Requirements
- Legal Structure: Establish a legal entity (if required) to operate the dealership.
- Compliance: Ensure compliance with local laws, regulations, and Maruti Suzuki's specific requirements.
Financials and Funding
- Financial Arrangements: Secure financing or funds required for the dealership setup and initial operations.
- Budgeting: Allocate funds for infrastructure, staff salaries, initial inventory, and operational expenses.
Approval and Agreement
- Evaluation: Maruti Suzuki will evaluate your application, infrastructure, financial capability, and market potential.
- Approval: Upon approval, sign the dealership agreement provided by Maruti Suzuki.
Setup and Training
- Setup: Build the dealership infrastructure according to the agreed specifications.
- Staffing: Recruit and train staff, ensuring they are well-versed with Maruti Suzuki's standards and customer service protocols.
Inventory and Launch
- Inventory Procurement: Order initial inventory from Maruti Suzuki based on market demand and dealership size.
- Launch: Organize a grand opening and launch the dealership with proper marketing and promotional activities.
Operations and Management
- Operations: Start day-to-day operations, ensuring adherence to Maruti Suzuki's standards in sales, service, and customer relations.
- Management: Implement efficient management practices to ensure smooth functioning.
Support and Growth
- Support from Maruti Suzuki: Utilize support provided by Maruti Suzuki in terms of marketing, training, and operational guidance.
- Expansion: With successful operations, consider expansion and growth strategies in consultation with Maruti Suzuki.
Why To Invest In Maruti Suzuki Automotive Dealership Franchise
- Maruti Suzuki is India's largest automobile company that offers business opportunities to interested parties. As an authorized dealer of Maruti Suzuki, one can be assured of growth and success.
- Several Maruti Suzuki models are consistently among the top-selling cars in India, ensuring demand across different segments.
- Maruti Suzuki has an extensive dealership and service network across India, providing accessibility and convenience to customers for sales, service, and spare parts.
- Maruti Suzuki's transparent policies and efficient business operations create a conducive environment for franchisees.
- Maruti Suzuki regularly introduces new models and upgrades, providing opportunities for dealerships to attract customers with fresh offerings.
Sustainability and Growth Prospects of Maruti Suzuki's Dealership Franchise Model
- Market Share: Maruti Suzuki is currently the market leader in passenger vehicles in India. The company plans to maintain a 6% growth rate until FY 2030-31, with a slightly higher growth rate expected in FY 2023-24.
- Electric Vehicles: Maruti Suzuki aims to introduce six EV models by FY 2030-31, including a mid-size electric SUV in FY 2024-25. The company expects ICE vehicles, including CNG, biogas, flex-fuel vehicles, ethanol, and blended fuel, to take up a share of 60% in its sales, followed by 25% for hybrid electric vehicles (EVs) and 15% for battery electric vehicles (BEVs).
- Production Capacity: Maruti Suzuki plans to double its production capacity to 4 million cars by 2030. The company also aims to build two million additional annual capacity in nine years.
- Exports: Maruti Suzuki expects export volumes to grow to 800,000 cars by fiscal 2031, up from 259,333 cars in fiscal 2023.
- Sustainability: Maruti Suzuki has been focusing on environmentally friendly smart hybrid and CNG vehicles, with 27% of its sales coming from these environmentally friendly vehicles in one year. The company has also been working on installing solar panels across its manufacturing plants.
Forecasting The Future Of The Automotive Industry In India In Relation To Maruti Suzuki's Position
Maruti Suzuki, India's largest car manufacturer, plans to double its vehicle production capacity to 4 million vehicles per year by 2030-31 and ramp up its export infrastructure to expand its presence outside of India which makes India a global automotive hub.
Maruti Suzuki projects a 6% year-on-year growth in the automotive industry's volume by the year's end and expects the auto industry to clock in sales of a million cars by the end of 2023. Suzuki Motor Corporation expects the Indian passenger vehicle market to reach 7-8 million units by 2030, and Maruti aims to have a 50% share of the market.
The company also aims to provide affordable and sustainable mobility solutions for Indian families, aligning with the nation's evolving automotive needs and is expanding its product portfolio to recognize the shift in consumer preferences.
Future of Automotive Dealership Franchise In India
Dealership dealings benefit from well-established service and maintenance networks across the country, ensuring convenient and reliable after-sales service.
The Indian government is working on an EV policy that would cut import taxes for automakers that commit to producing electric vehicles in the country. This could open up new opportunities for entrepreneurs to invest in EV dealerships, although it is essential to consider the risks and challenges associated with this rapidly evolving industry
As consumer preferences shift, automotive dealerships may need to diversify their offerings to cater to the changing market demands. This could include expanding into related services such as car insurance, financing, and maintenance.
So, the future of automotive dealership franchises in India looks promising, with the industry experiencing significant growth and expansion.
To conclude, As the automotive industry charts new territories, the Maruti Suzuki Automotive dealership franchise stands as a resilient and adaptive entity, poised to capitalize on emerging trends while upholding its core values.
With an ever-expanding market, a commitment to excellence, and the backing of established brands like Maruti Suzuki, the automotive dealership franchise in India emerges as an unrivalled opportunity for entrepreneurs seeking success and growth in 2024 and beyond.
To know more about Automotive brands and the dealership franchises they offer and to explore further what automotive dealership franchise is suitable for your requirements, you must talk to the consultants of FranchiseBAZAR. Hurry up, don't miss your chance.
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.
Written By: Shruti Agrawal
Written By: Divisha Pandey
Written By: Divisha Pandey
Written By: Divisha Pandey