How to Start a Hero MotoCorp Dealership?

. 7 min read
How to Start a Hero MotoCorp Dealership?

The demand graph for two-wheelers sees an upward shift. Earlier, bikes were considered only one of the transportation modes and a convenient means for people to travel. Currently, they are considered a style statement. For this reason, more and more people look forward to buying motorcycles suiting their style, which is also good-looking and affordable.

When it comes to most in-demand bikes, the list will be incomplete without Hero Motocorp. The company is known for producing world-class motorcycles. Counted among the most popular bike manufacturing companies, Hero Motocorp is one of the few players with an excellent range of products for all kinds of customers. Moreover, the company has also ensured excellent customer service over the years. As a result, the brand has achieved high popularity over the years. Hence, signing up for the hero motocorp dealership will prove to be a profitable affair for any individual looking for a rewarding investment option.

Read on to learn more about it.

How profitable will the Hero Moto Corp Franchise dealership be?

Hero Moto Corp Franchise is a rewarding and profitable opportunity for avid business people looking for high-return investment options. One of the significant advantages of this dealership is that the brand has a firm grip on the market and has a large customer base. In other words, the product will remain in high demand. So far, the company has introduced more than 19 motorbikes models to meet the varied needs of individuals. Thus, the scope of the sales for Hero Moto Corp’s bikes will remain evergreen which means good business scope.

Types of Franchise dealership available with Hero Moto Corp

The company has come up with three Franchise dealership models based on the investment amount and locations.

1. Authorised Representative

It is an ideal franchise option for individuals who want to start small towns. In this model, dealers need to maintain a limited vehicle stock – 25 to 50 units and spare parts. The investment cost is also low, which could be anywhere between 50 lakhs to a crore. Additional benefits of this model are easy management and quick dealership approval.

However, this model has some limitations as well. For example, the representatives will not get Company Certification and can only purchase stocks from the area dealer. Besides, they also have to deal with competition from primary dealers. But you can combat these limitations with the right set of strategies.

VOIP headset on laptop computer keyboard

2. Authorised Service Center

An ideal model for municipality areas and small cities. In this business model, dealers are required to maintain stock of 100 to 150 units while the range of investment can be anywhere between 1 crore to 1.5 Crore. To sign up for this dealership scheme, individuals shouldn’t be a dealer of Hero Moto Corp. Plus, they can buy the stock from dealers and not from the company.

3. Dealership

It is the most popular model suitable for cities. Though this model requires a high initial investment – up to 5 Crores, it also offers the highest margin. Individuals are needed to stock up to 1000 to 2000 units. More products mean more sales and increased income and incentives. Dealers also get Hero Moto Corp certification. Plus, they are facilitated with paid international holidays by the company.

Hero MotoCorp Dealership Details

1. Working area requirement

Hero MotoCorp franchise dealership requires a large working area and parking area for motorbikes. Besides, there should be adequate space for displaying bikes, building an office, and other merchandise. Note that there is no clear information about the initial investment for the Hero Moto Corp dealership. The indicative figures can be considered as a reference, though. All these facilities need a minimum of 3000 – 4000 square feet area.

2. Investment and cost

The initial cost of this company’s Franchise Dealership varies according to the area or location. However, the initial investment value is around 30 to 40 Lakhs (including interiors and spare parts cost).

3. Profit percentage

The return on investment depends on the market and business strategies of the dealers. However, the minimum rate of return for Hero Moto Corp dealership is 18%, including revenue earned from Hero Corp spare parts, vehicles, and workshops.

4. Training and Services

The following training and service facilities are given to the dealers to set up the company’s showroom -

  • Hero Moto Corp offers every possible support to set up the franchisee’s construction and design.
  • The Franchise is given operational assistance and support for better functioning.
  • The company assists the dealers with site selection and business development.
  • Administrative assistance and technical knowledge are given to the franchisee (limited to agreement term).
  • Dealers get marketing support from the company for regional and local advertising.
  • Franchisees and crew members are trained for efficient working.
  • The Head Office provides expert guidance to the dealers during the tenure.

Hero MotoCorp Dealership - Application Procedure

Follow the steps below for hero motocorp dealership -

Step 1 - Visit the hero motocorp’s official website to register.

Visit Hero MotoCorp’s official website to get started with the application process. Next, select the ‘PARTNER WITH US’ button on the portal’s home page.

Step 2 – Open the application form.

Click on “Start Application” to access the “Channel Partner Application form.”

Step 3 - Fill the form with the required details.

Complete the partner application form. Make sure to add authentic details. You’ll be required to provide information about your state, city, Date of application, Applicant’s name, address, phone, email, existing company or firm name, including other details.

Once you are done filling in all the relevant details asked in the application form, the system will generate a PDF file that will contain all info included in the application. In the next step, you’ll be required to submit address proof and ID such as passport, Voter Id, Pan Card, Aadhar card, Udyog Aadhar Registration, driving license in PDF Format. Note – submit self-attested documents.

Step 4 – Save and submit the completed application form.

Once step 3 is completed, click on the “Save and Continue” button to submit your application.

businessman pressing Customer Support button on virtual screens

Hero MotoCorp Customer support for dealership

Dealers can connect with the customer executive of the company on 1800 266 0018 to get their queries and doubts resolved.

You may send your reach out to the company’s customer support by posting your queries on the following address -

Hero MotoCorp Ltd.

34, Community Centre, Basant Lok, Vasant Vihar,

New Delhi – 110057, India.

Tel - +91-11-26142451, 26144121

Fax - +91-11-26143321, 26143198

Final Say

Motorbikes are one of the most popular and preferred modes of travel. And Hero Motors motorbikes are designed especially for the roads of India, which is why it has become one of the major motorbike giants in the market. Today, the company has over 5000 authorised dealerships pan India. It is the result of the growing demand for Hero MotoCorp bikes. So take advantage of this opportunity and submit your hero motocorp dealership application today.

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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Q. How to sign up for a Hero motocorp dealership?

Ans. To become a Hero motocorp dealer, you need to submit an application form through the company’s official online portal. Download the application form from their website, fill in all the relevant details and submit the completed form along with all necessary documents. You may also submit the completed form in person at their registered or corporate office or send the form via courier service to the company’s address.

Q. What is the initial investment cost required for a Hero motocorp dealership?

Ans. You’ll need at least INR 30 to 40 lakhs for the dealership. The initial investment depends on the type of franchise dealership opted by the individual. You may also consider taking a loan from the dealership.

Q. How much area is needed for setting up the dealership?

Ans. 3,000 to 4,000 square feet outlet space or area is required for setting up a Hero Motocorp dealer store. However, it is only the indicative figure. The company gives the exact space needed after the application is accepted.

Q. What is the profit margin for hero motocorp dealers in India?

Ans. The margin can range between 3 to 4.5 per cent for bike sales pricing below INR 50,000, whereas the percentage rises to 3 to 6 per cent for motorbikes costing between INR 50,000 to INR 75,000.