Become a honda activa dealer: the unmissable guide to success

Honda Activa, the iconic two-wheeler in India, has been a trusted choice for commuters and families alike. If you’re an aspiring entrepreneur looking to delve into the automotive industry, securing a Honda Activa dealership can be a lucrative opportunity. Here’s a comprehensive guide to help you navigate the process.

1. Eligibility Criteria

To qualify for a Honda Activa dealership, you must meet the following basic requirements:

• Indian citizenship
• Minimum educational qualification of 10+2 or equivalent
• Minimum 5 years of experience in the automobile industry
• Sound financial standing with a good credit history
• Ability to invest in the dealership infrastructure

2. Location and Infrastructure

The location of your dealership is crucial for its success. Consider high-traffic areas with good visibility and accessibility. You’ll need a spacious showroom to display the Activa models, a service center with trained technicians, and a spare parts inventory.

3. Dealership Application

Honda Motorcycle & Scooter India (HMSI) has a dedicated process for dealership applications. You can download the application form from their website or obtain it from their regional office. The form requires detailed information about your company, experience, financial status, and proposed dealership location.

4. Site Inspection and Evaluation

Once your application is submitted, HMSI will conduct a thorough site inspection to assess the suitability of your proposed location. They will evaluate the size, accessibility, and infrastructure of the site to ensure it meets their standards.

5. Financial Assessment

HMSI will evaluate your financial capabilities to ensure you have sufficient funds to invest in the dealership. They will review your financial statements, credit history, and business plan to assess your financial stability.

6. Training and Certification

Before you can operate a Honda Activa dealership, you and your staff must undergo comprehensive training programs conducted by HMSI. These programs cover various aspects of dealership operations, sales, marketing, and technical support.

7. Dealership Agreement

Once your application is approved, you will enter into a dealership agreement with HMSI. This agreement outlines the terms and conditions of your dealership, including product supply, marketing support, and customer service standards.

8. Marketing and Promotion

Effective marketing and promotional strategies are essential for the success of your dealership. HMSI provides support with national advertising campaigns, dealer-specific promotions, and online marketing initiatives. You can also implement your own local marketing strategies to attract customers.

9. Customer Service Excellence

Providing exceptional customer service is paramount in the automotive industry. Honda Activa dealerships are expected to adhere to high standards of customer care, including timely repairs, courteous staff, and prompt response to inquiries.

10. Inventory Management

Maintaining an optimal inventory of Honda Activa models and spare parts is crucial. HMSI provides inventory management support, but it’s your responsibility to ensure you have sufficient stock to meet customer demand.

11. Sales and Finance

Honda Activa dealerships must have well-trained sales staff who can effectively present the product features and benefits to potential customers. You should also establish partnerships with financial institutions to offer financing options to customers.

12. After-Sales Support

Providing comprehensive after-sales support is essential for customer satisfaction. Your dealership should have a dedicated service center with trained technicians who can handle repairs, maintenance, and warranty claims.

13. Continuous Improvement

The automotive industry is constantly evolving. To stay competitive, you must continuously improve your dealership operations. HMSI provides ongoing training, support, and market updates to help you adapt to the latest trends and technologies.

Key Points: Embarking on a Rewarding Journey

Securing a Honda Activa dealership is a significant undertaking that requires careful planning, financial investment, and unwavering commitment. By following the steps outlined in this guide and adhering to Honda’s high standards, you can establish a successful and rewarding dealership that meets the needs of your community.

Basics You Wanted To Know

Q1. How long does the dealership application process take?
A1. The application process can take several weeks to complete, depending on the complexity of your application and the availability of HMSI staff.

Q2. What is the minimum investment required to open a Honda Activa dealership?
A2. The investment required varies depending on the size and location of your dealership. However, it typically ranges from INR 50 lakhs to INR 1 crore.

Q3. Does HMSI provide financial assistance to dealers?
A3. HMSI does not directly provide financial assistance. However, they can guide you in securing financing from banks and other financial institutions.

Q4. What is the profit margin on Honda Activa sales?
A4. The profit margin varies depending on various factors such as the model, sales volume, and operating expenses. It typically ranges from 5% to 10%.

Q5. Is it possible to secure multiple Honda Activa dealerships?
A5. Yes, it is possible to secure multiple dealerships, but it depends on your financial capabilities, experience, and the availability of territories in your area.