How to get a Hero Electric dealership? Check cost and requirement here

In a country like India, the market for bike dealerships has always been prime and successful. From metro cities to small towns and even in rural areas, motorcycle dealers are thriving. It is an inspiring factor towards taking a step to launch your electric bike dealership business.

In India, more people prefer to buy two-wheelers, mainly bikes, before they buy a car. It is because it is more economical, fuel-efficient, and more suitable for Indian roads and traffic. Another critical factor is that the youth of this country shares a common craze when it comes to bikes. However, with rising concerns for air pollution and petrol prices, many are switching to electric transportation. Electric bikes are pollution-free and cost-effective, and the government is encouraging manufacturers and dealers to sell them.

As it is written in the new VeloPress book, E-bikes: The question of motive is an important part of the assessment.

Why electric bikes?

With more people looking for unique business ideas than ever before, the electric transportation sector is set to be the next big thing. The number of private, petrol or diesel vehicles is increasing at an alarming rate, and so is the consumption of fuels. As a result, it is causing severe air pollution in the environment and health issues to the people. Another factor is that petrol prices are rising rapidly, hence making it unaffordable to the common person. Thus, electric bikes are getting introduced as an alternate source of transport and a clean source of energy. It is both pollution-free and cost-effective, making it the most sensible solution to our existing problems. This small-scale profitable business not only helps you but also contributes towards your city, town, and environment.

What is the market potential?

The e-bike market in India was valued at USD 1.02 million in 2020. It is expected to reach USD 2.08 million by 2026 and that too, with a projected CAGR of 12.69%, according to the studies conducted by Mordor Intelligence. However, there was a decrease in revenue of USD 0.68 million compared to 2019. It is because market sales were reduced as a result of the pandemic and economic slowdown. The e-bike market in India is still in a developing stage. However, the situation is expected to improve in the future as this is a budding sector. Many companies and individuals are switching their focus here. Startups like Ola and Rapido are also involved in this sector. In addition, as logistics and rentals swiftly adopt e-bikes, they drive the market growth in India.

How to get your Hero Electric dealership?

To apply for your Hero Electric dealership, follow the given steps:

Step 1: Go to the official Hero Electric website, open the application form and apply for the electronic bike dealership.

Step 2: After submitting the electric bike dealership application, the company will get in touch with you shortly for the verification process.

Step 3: To verify the actual location of your space, the company will send an officer to the premises.

Also read: E Scooter Manufacturers in India

Step 4: After this, you wait for approval from the company. Once you receive it, you have to pay the full dealership amount.

Step 5: Once the payment is complete, you can move on to the final step, which is setting up your business.

The most common process is as follows:

You need to fill the form.
You need to secure the surety bond.
You must buy liability insurance for all the vehicles in your showroom for safety purposes.
Then you must apply for your GST tax number for tax purposes.
Finally, you can get started with developing your present showroom location as per your taste.

How is the business in the electric bike sector?

Business in the electric bike sector is a great move because more people are switching to electronic transportation due to its cost-effectiveness and environmentally friendly features. In the coming times, the demand for electric vehicles will only increase. In addition to this, the government also promotes and supports the use of electric vehicles for our environment.

Hero Electric dealership cost in India

There are a couple of things to keep in mind while analysing your budgets and total investment. To get started, the initial investment ranges somewhere between 30-50 lakh rupees approximately. The actual amount may vary within this range based on factors such as the state you are opening in, tax considerations, and your marketing and advertising needs.

The next requirement is a commercial space for use. Securing a good space in a prime location and arranging the stock are the two main factors of your investment. You can either finance your business with your savings or opt for a loan from your bank. The latter is a cheaper and risk-free way of starting a business. With a sound, profitable future, you can quickly repay the debts.

Conclusion

With the recent shift in focus from petrol- or diesel-based vehicles to electric vehicles, the electric bike dealership business will grow into a dominant sector as well as a very profitable one. This is primarily due to our rising environmental concerns such as air pollution and deteriorating air quality. Switching to electric vehicles and opting for conservable energy usage will have the most positive impact on our present environmental crisis.

OkCredit is here to guide and assist you through the process of getting your Hero Electric dealership. To start this business on a small scale, you will need a minimum starting investment of 10 lakh rupees. In time with a reasonable margin of profit, your dealership business can blossom, and you can expand quickly as per your wishes.

Also read:

1) How to get a Jio Dealership?
2) How to start a car dealership? Here's what might interest you
3) How to Get Bike Dealership In India? Two Wheeler Dealership Guide!
4) How To Get An Electric Vehicles Dealership? A Complete Guide!
5) OkCredit: All you need to know about OkCredit & how it works.

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FAQs

Q. What are the benefits of Hero Electric bikes?

Ans. The benefits of Hero Electric bikes are:

They are environmentally friendly
They use a clean energy source, hence causing less air pollution.
The price of an electronic bike is lower than bikes that run on petrol.
They run on rechargeable lithium-ion batteries
They require hassle-free low maintenance and are highly cost-effective.

Q. What are the best tips to start an electric bike dealership?

Ans. Follow the steps given below to start an electric bike dealership:

Step 1: Analyse the market and research the demands of your targeted consumers. The ability to provide your customers with precisely what they need takes you a long way in your business.

Step 2: You should be clear and concise about your buyer persona. Your buyer persona is a detailed list of qualities that your ideal customers share. By determining your perfect buyer, you can plan your company to suit your needs as well as theirs.

Step 3: To decide whether your commodity has adequate demand, calculate the market growth along with your market research for dealerships. Finally, you have to consider and evaluate your estimated market revenue.

Q. How to get a Hero Electric dealership?

Ans. Follow the steps given below to get your Hero Electric dealership:

Step 1: Go to the official Hero Electric website to apply for the dealership.

Step 2: Open the application form and enter the required information.

Step 3: Enter your property and investment details next.

Step 4: If you have an existing running business, enter the details. If this is your first business, fill NA.

Step 5: Submit the application form and wait for verification.

Q. What is the initial investment required to start a Hero Electric dealership in India?

Ans. The initial investment required to start a Hero Electric dealership ranges between 30 and 50 lakh rupees, depending on your location and area.

Q. How is the market in the electric bike dealership business?

Ans. The market is up-and-coming in the electric bike dealership business for the following reasons:

1. The market will become very dominant in the future as the sales for electric bikes will only increase with time, making it a perfect business opportunity. The government is also emphasising the use of electric vehicles due to severe environmental concerns such as increasing air pollution and degrading air quality.

2. There are several dealership opportunities with an easy registration and verification process.

Q. Do E-bikes require a license?

Ans. E-bikes with a top speed of less than or up to 25 km per hour and power up to 250W do not require a driving license. However, you need a license if your e-bike has a speed higher than 25 km per hour and a capacity of more than 250W.

Q. What is the profit margin on E-bikes?

Ans. With an ever-increasing demand for electric vehicles, the gross margin on e-bikes is around 25% instead of the average 21%.