[Klutch]

How much does it cost to become a Maruti Suzuki dealer and set up a dealership? How much would the initial investment be and the subsequent royalty fees that are applicable to franchise like establishments? What is the procedure to be followed in case one wants to set up such a dealership?

 

[Automator]

The initial investment to be done by people who aspire to become a Maruti Franchise is around 30 to 50 Lakhs. This is not a fixed amount and is more dependent on the location where the Franchise operation is to be started and the type of Franchise applied for by the interested people.

Out of this investment amount, One Lakhs rupee is to be submitted to Maruti Suzuki in the form of Demand Draft while submitting the application for the dealership. The space requirement to become a Maruti Suzuki Franchise is approximately 4000 Sq. Ft. Once you are ready with the requirements indicated above, proceed to apply for the dealership with Maruti Suzuki

Application and documentation process to become Maruti Suzuki Franchise
While the application process is simple, the documentation requirements to become a Maruti Suzuki Franchise are really heavy. This is so just to estimate your capacity to manage a business that is of huge volumes from a brand that is one of its kinds in the automobile industry. The following are the documents required by Maruti Suzuki to assess your potential to become a successful profitable Franchise

• The experience levels and current work details of the person who intends to become the Director of the Franchise.
• The intended structure of Franchise organization.
• Demand Draft for One Lakhs rupees.
• Family tree of the applicant to assess personal capabilities and shortcomings if any.
• Credit reports (CIBIL) of the person who applies for the Franchise-ship.
• Letter from the Banker in the required Pro-forma format indicated by Maruti Suzuki.
• Complete set of Income Tax details.
• Wealth Tax returns filed for the period as required by Maruti Suzuki.
• Balance Sheet and Profit & Loss Account for the last 3 years' time.
• A map that clearly indicates no clash of business interests marking the location of the intended Franchise startup.
• Photos of the space year-marked for starting Franchise operations.

 

[Brezzalient]

The initial investment to be done by people who aspire to become a Maruti Franchise is around 30 to 50 Lakhs. This is not a fixed amount and is more dependent on the location where the Franchise operation is to be started and the type of Franchise applied for by the interested people.

Out of this investment amount, One Lakhs rupee is to be submitted to Maruti Suzuki in the form of Demand Draft while submitting the application for the dealership. The space requirement to become a Maruti Suzuki Franchise is approximately 4000 Sq. Ft. Once you are ready with the requirements indicated above, proceed to apply for the dealership with Maruti Suzuki

Application and documentation process to become Maruti Suzuki Franchise
While the application process is simple, the documentation requirements to become a Maruti Suzuki Franchise are really heavy. This is so just to estimate your capacity to manage a business that is of huge volumes from a brand that is one of its kinds in the automobile industry. The following are the documents required by Maruti Suzuki to assess your potential to become a successful profitable Franchise

• The experience levels and current work details of the person who intends to become the Director of the Franchise.
• The intended structure of Franchise organization.
• Demand Draft for One Lakhs rupees.
• Family tree of the applicant to assess personal capabilities and shortcomings if any.
• Credit reports (CIBIL) of the person who applies for the Franchise-ship.
• Letter from the Banker in the required Pro-forma format indicated by Maruti Suzuki.
• Complete set of Income Tax details.
• Wealth Tax returns filed for the period as required by Maruti Suzuki.
• Balance Sheet and Profit & Loss Account for the last 3 years' time.
• A map that clearly indicates no clash of business interests marking the location of the intended Franchise startup.
• Photos of the space year-marked for starting Franchise operations.

Is it worth it to become a Maruti Suzuki dealer, considering the huge investment and obviously there would be an operational cost too?

 

[Automator]

Is it worth it to become a Maruti Suzuki dealer, considering the huge investment and obviously there would be an operational cost too?

Of course, it is. It is very profitable to own a Maruti Suzuki dealership. Simply because the brand name itself brings in a lot of customers. Maruti Suzuki directly gets involved with you in the business and ensures you are well equipped to handle their potential customers in the way they intend you to.
The brand is a prestigious one with a long legacy in India. It is a household name. So even though the investment initially is a bit steep but it is a one-time investment for long time profits. Also, it doesn't look like the company would go out of business anytime soon, you can thus be assured that the investment will reap you benefits in the long run.
And lastly, which business that is this scalable does not have substantial operational costs?