How to Get a Hyundai Dealership? Cost, Investment & Profit Margin

If we talk about the automobile brands that are running in a hugely populated country like India, then Hyundai Motor India is one of them. We do have to agree with the fact that, Hyundai is surely taking over all the competitors in India superiorly.

Many automobile companies who came to India could not survive in the market only because of the amazing competition from Hyundai and other such brands that are present in the Indian country. 

Now, what if you open a Hyundai dealership in a popular country like India? Yes, if you have all the requirements including the budget then it would surely be a profitable business. The budget requirement might be quite higher but, you will earn ample profit margin and it will be the best investment if you are planning for long-term businesses in India. 

Now, further in this article, we will talk about Hyundai dealerships, the investment required to start a Hyundai dealership, services offered at Hyundai dealerships, documents required, and many more.

Read More : How to get Kia Dealership?

Different Types of Hyundai Dealership Stores

Most automobile companies offer services depending on the parts and area. Now, the same case is followed by Hyundai as well. But, if you happen to visit any Hyundai dealership they will take care of all the problems you face. Moreover, the company has kept everything simple and straight. 

If we talk about different types of car dealerships then there are four types of car dealerships. The four types of car dealerships are brand-specific dealers, big used dealerships, small garages, and online dealerships. Today, Hyundai has more than 346 dealers in India working for customers. Other than these, Hyundai also has 1300+ service centers across India. 

Investment Required to Start a Hyundai Dealership 

Starting a Hyundai dealership in India could be quite expensive and not very easy. If you are willing to open a Hyundai dealership very easily then make sure to follow all the terms and conditions mentioned by the officials of the company. Now, the first step to consider before, while, and after opening a Hyundai dealership is its investment requirement. 

Now, the total investment required to start a Hyundai dealership is Rs 5 crores. Yes, it is a huge investment so, if you are planning to open then make sure you have the budget in your bank account. Now, the other necessary investments required to start Hyundai dealerships are the following:-

• Infrastructure cost including building construction, workshop shed, tools and equipment, electrical water, and many more- Rs 70-80 lakhs 
• Advertisement - Rs 5-10 lakhs 
• Corporate Identity as per norms- Rs 5 lakhs 
• Dealership fee- Rs 10 lakh 
• License- Rs 50k 
• Investment for stock- Rs 1.5 crore to Rs 2 crore 
• Spare Parts- Rs 5 lakhs to Rs 10 lakhs 
• Working Capital- Rs 1.5 crore 

The above-mentioned investments or costs are the average investment cost given. The price of the total investment figure could vary as per the land cost and area. 

Services Offered at A Hyundai Dealership Store

Hyundai is known for its wide range of services to Indian customers. Most customers who have visited Hyundai dealerships for any service have always appreciated the working method and the process from them. 

Now, when you happen to visit a Hyundai dealership store these are the services that you can receive from them:-

• Hyundai Service - This service from Hyundai includes Service Events and Service Program. Some of the Service Events are Hyundai Smart Care Clinic, Experience Hyundai Camp, and Seasonal Camps. On the other hand, the Service Program includes Hyundai Skill Development and Hyundai Premium Assistance. 
• Warranty Policy - In this service, all sorts of warranties are covered by Hyundai some of them are part warranties, power train warranties, extended warranties, and many more 
• Maintenance
• Roadside Assistance 
• Shied of Trust 
• Genuine Parts 
• Navigation Updates 

Documents Required Before Starting a Hyundai Dealership 

Just after investment, having proper and up-to-date documents are very important to open a reputable automobile dealership. Make sure all the documents asked by the officials of the company are up-to-date because this is how the company can trust you and give you a dealership program.
Here are some of the important documents required to start a Hyundai dealership:-

• Aadhar Card, PAN Card, Voter ID Card
• Ration Card or Electricity Bill for Address proof 
• Proper Bank account details with passbook 
• Photograph (passport size), Email address, contact number 
• Complete property documents with address 
• Lease agreement 
• All type of NOC 
• GST Number 
• Trade License 
• Trade Certificate 
• EPF & ESIC Registration 

Manpower Required to Run a Hyundai Dealership

A company runs well when you have proper and well-trained manpower or labors. Similarly, your dealership can only run smoothly only when all the manpower selected are highly trained and well-skilled. Without proper manpower, you cannot run a business smoothly in the market. 

Here are some of the positions that you are required to fill when you open a Hyundai dealership:-

• Manager 
• Sales Consultant 
• Sales Coordinator 
• Maintenance Staff 
• Technicians 
• Supervisor 
• Workshop Manager 
• Cleaners 
• Salesperson 
• Service Advisor 

Area Required to Start a Hyundai Dealership

Make sure to provide an amazing area that will attract the franchisors. Opening a car dealership in any location will not be allowed by the officials. You need to provide a good area where people can come easily with their car and get it serviced by you. Similarly, if you are willing to open a Hyundai dealership make sure you have a proper area. 

Now, the area required to open a Hyundai dealership is given below:-

• For the Showroom - 6000 square feet and the front should be a minimum of 80 feet 
• For the Workshop - 8000 square feet- 10000 square feet 
• For spare parts- 500-1000 square feet of area 
• Office - 800-1200 square feet 

Average Profit Margin from a Hyundai Dealership

When you spend such a huge amount on this business you surely expect a good profit margin in return. Other than that, you also expect a speedy return on investment from the dealership or franchise you have opened. 

To earn a good profit margin after opening a Hyundai dealership one must provide Sales, Service, and Space. The company will provide an average profit of 3-4% which highly depends on the vehicle. The net profit on spare parts will be 20-25% on the MRP. Some other revenue sources and their average profit margin is given below:-

• Vehicle sales- 3% 
• Value Added Services 
• Retail Finance- 3% 
• Insurance- 40% upto 
• Parts- 25% 
• Engine oil 
• Other accessories 

Is Hyundai Dealership Profitable? 

Opening a Hyundai dealership is surely a profitable business. The profit margin highly depends on the sales but, there are so many other sources from where you can earn money. As we all know, Hyundai is one of the leading car brands in a populated country like India so, customers will need the services from the nearest dealers and this is where you can earn unimaginable profit margins. 

Additionally, the profit margin depends on the car model. So, the better the model the better profit one can earn. We all know the quality that is offered by Hyundai in its wide range of car models. Moreover, opening a Hyundai dealership is surely a profitable business in India.