Step into our Hero MotoCorp dealership, where innovation meets performance. From state-of-the-art motorcycles to top-notch service, we redefine your riding experience

Hero MotoCorp Dealership

• Hero MotoCorp Limited is an Indian multinational motorcycle and two-wheeler manufacturer based in New Delhi, India. It is the world’s largest two-wheeler manufacturer by production volume, selling over 10 million two-wheelers in a single year in 2019. Step into our Hero MotoCorp dealership, where innovation meets performance. From state-of-the-art motorcycles to top-notch service, we redefine your riding experience
• Hero MotoCorp was founded in 1984 by Brijmohan Lall Munjal as a joint venture between Hero Cycles and Honda of Japan. The company became independent of Honda in 2011. Hero MotoCorp has manufacturing plants in India, Bangladesh, Colombia, and Kenya. It also has assembly plants in several countries, including Nigeria, Argentina, and Turkey.
• The company’s main products are motorcycles and scooters. Hero MotoCorp also sells a range of spare parts and accessories. The company’s most popular motorcycle models include the Splendor, the HF Deluxe, and the Passion.
• Hero MotoCorp has a substantial market share in India, where it is the market leader in the two-wheeler segment. The company also has a significant presence in other countries, including Bangladesh, Colombia, and Nepal.
• In addition to its two-wheeler business, Hero MotoCorp also has a joint venture with Mahindra & Mahindra Ltd to produce automobiles. The joint venture, Mahindra Hero Electric Mobility Limited, produces electric vehicles.

Why to Take the Hero Motocorp Franchise?

Taking a Hero MotoCorp franchise can be a lucrative and rewarding opportunity for the right entrepreneur, but it’s crucial to weigh the pros and cons before deciding. Here’s a breakdown of the potential benefits and drawbacks to help you decide:

Benefits

1. Strong brand reputation: Hero MotoCorp is a household name in India, synonymous with quality and reliability. This established brand recognition translates to easier customer acquisition and potential loyalty.
2. Dominant market share: As the world’s largest two-wheeler manufacturer, Hero MotoCorp boasts a significant market share, particularly in India. This translates to a vast potential customer base for your dealership.
3. Diverse product range: Hero offers a wide range of motorcycles and scooters catering to various budgets and needs. This variety allows you to cater to a broader customer base and increase sales opportunities.
4. Comprehensive support: Hero MotoCorp provides extensive support to franchisees, including showroom design, business development assistance, operational guidance, marketing support, and technical training. This reduces the learning curve and increases the chances of success.
5. Profitable potential: With high demand for Hero vehicles and the potential for attractive margins on sales and servicing, your franchise can be a profitable venture.

How to Apply for Hero Motocorp Dealership?

Becoming a Hero MotoCorp dealer can be an exciting opportunity to join a leading name in the Indian automobile industry. However, it’s also a well-structured process with specific requirements and steps.

Here’s how you can apply: 

1. Visit the official application portal:

 Hero MotoCorp provides an online platform for dealership applications. Visit the ‘Channel Partner Application’  

2. Fill out the online application form:

Provide accurate and complete information about yourself, your proposed dealership location, financial background, and experience (if any). Remember, your application will be carefully reviewed, so present yourself professionally and clearly. 

3. Prepare and upload required documents:

The required documents may vary depending on your location and type of dealership. Typically, you’ll need to submit scanned copies of personal identification documents, financial statements, property ownership details, and business plans. 

4. Submit the application:

Once you’ve completed the form and uploaded documents, review everything carefully before submitting the application. You’ll receive a confirmation email and reference number for future reference. 

5. Await review and contact:

Hero MotoCorp representatives will review your application and get in touch if you meet their criteria. This process can take some time, so be patient and keep all required documents readily available.

• Area requirements: Hero MotoCorp dealerships typically require a minimum space of 3000-4000 square feet to accommodate display bikes, a service centre, a customer lounge, and office space.
• Investment: Be prepared to invest a significant amount in infrastructure, inventory, and operational costs. Hero MotoCorp may also have specific financial requirements for potential dealers.
• Experience: While prior experience in the automobile industry is beneficial, it’s not always mandatory. Strong business acumen, entrepreneurial spirit, and a passion for the Hero MotoCorp brand can be valuable assets.

Hero MotoCorp Franchise Company Details

Hero MotoCorp doesn’t operate through a traditional franchise model. Instead, they partner with individuals or businesses as authorised dealerships. These dealerships operate under Hero MotoCorp’s brand guidelines and sell their motorcycles and scooters, but they are independent entities responsible for their own operations and profits.

Training provided by Hero Motocorp

Dealer Training: Hero Motocorp invests heavily in training its dealers and their staff. This training covers various aspects like: 

1. Sales and customer service skills
2. Product knowledge and technical training
3. Service and maintenance procedures
4. Marketing and promotion strategies
5. Financial management

Employee Training: Hero Motocorp also conducts training programs for its own employees across various departments like production, engineering, finance, and human resources.

Services offered by Hero Motocorp

Hero Service: This is Hero Motocorp’s comprehensive service program that covers a wide range of services for its customers, including: 

• Periodic maintenance
• Accidental repairs
• Genuine parts and accessories
• Pick-up and drop service
• Roadside assistance
• Extended warranty and insurance options

Other Services: In addition to Hero Service, Hero Motocorp also offers other services like:

• Finance options through Hero FinCorp
• Insurance through Hero Insurance
• Riding training programs through the ‘Be A Safe Hero’ initiative

Criteria to Apply for Hero MotoCorp Franchise

While Hero MotoCorp doesn’t technically offer traditional franchises, becoming an authorized dealership requires meeting specific criteria, which can be categorized into:

Personal and Professional Characteristics:

1. Strong business acumen: Demonstrate entrepreneurial skills, business management experience, and the ability to run a successful operation.
2. Financial stability: Possess healthy financial resources to cover the initial investment and operational costs. This can be demonstrated through bank statements, financial reports, or existing business success.
3. Relevant experience: Prior experience in the automobile industry, especially with two-wheelers, can be beneficial but isn’t always mandatory.
4. Passion for the brand: A genuine enthusiasm for Hero MotoCorp, its products, and its values shows commitment and aligns with the company’s culture.
5. Leadership skills: Ability to effectively manage and motivate a team of employees to achieve dealership goals.

Location and Infrastructure

Suitable dealership location: Identify a strategically located area with high potential for two-wheeler sales and service, considering factors like population density, traffic flow, and proximity to existing competitors.

• Required space: Secure a land area meeting Hero MotoCorp’s minimum requirements, typically around 3000-4000 square feet, to accommodate display bikes, a service centre, a customer lounge, and office space.
• Infrastructure and facilities: The dealership must comply with Hero MotoCorp’s branding guidelines and ensure a professional setup with adequate showroom space, service bays, customer amenities, and parking facilities.

 Additional Factors: 

• Legal compliance: Adhere to all relevant legal and regulatory requirements for operating a dealership in your region.
• Community relationships: Develop positive relationships with local authorities, businesses, and residents to foster goodwill and support for the dealership.
• Commitment to customer service: Prioritise providing excellent customer service to build trust and loyalty among potential and existing Hero MotoCorp customers.

Documents & License for Hero MotoCorp

The documents required for a Hero MotoCorp dealership can vary depending on your location and the specific type of dealership you’re applying for. However, some general documents that are typically required include:

Personal identification documents:

• Passport
• Image of Passport
• Aadhar card
• Image of Aadhar card
• Voter ID card
• Image of Voter ID card
• PAN card
• Image of PAN card

Business registration documents:

If you are a registered business, you will need to provide your business registration certificate and other relevant documents.

Financial documents:

• Bank statements
• Image of Bank statements
• Financial reports
• Image of Financial reports
• Other documents that demonstrate your financial stability.

Property documents:

Proof of ownership or lease agreement for the proposed dealership location.

What is Hero Dealership Cost?

The cost of opening a Hero MotoCorp dealership can vary significantly depending on several factors, including:

Location:

• Tier 1 cities: Expect a higher investment due to premium land costs and operational expenses.
• Tier 2 and 3 cities: Costs are typically lower but can still vary based on a specific location within the city.
• Rural areas: The investment might be less, but the potential customer base and sales volume may be lower.

Dealership size and type:

• Large showrooms with full-service centres Require a higher investment in infrastructure and equipment.
• Smaller showrooms with limited service facilities: Less upfront cost, but may impact revenue potential.
• Exclusive Hero MotoCorp dealership vs. multi-brand showroom: Exclusive dealerships typically require bigger investments
• Land cost: Whether you purchase or lease the land for the dealership impacts the overall cost.
• Construction and renovation costs: Building or modifying the showroom and service centre can vary depending on size and complexity.
• Inventory: Initial stocking of bikes and spare parts requires significant investment.
• Operational expenses: Staff salaries, marketing costs, and utilities add to the ongoing expenses.

General Estimates:

While specific costs can vary greatly, here’s a general range based on dealership size and location:

• Tier 1 city – Large dealership: ₹1.5 crore to ₹2 crore
• Tier 2 city – Medium dealership: ₹75 lakhs to ₹1.25 crore
• Tier 3 city – Small dealership: ₹50 lakhs to ₹75 lakhs

Remember, these are just estimates, and the actual cost could be higher or lower depending on your specific circumstances.

Head Office Address

Hero MotoCorp Ltd, 34, Community Centre, Basand Lok, Vasant Vihar, New Delhi – 110057,India.

Telephone: +91-11-46044100, 26142451, 26144121

Fax: +91-11-26143321, 261143198.

At Vakilsearch, we are here to guide you through every legal aspect, ensuring a smooth and compliant registration process for your venture.

Legal Services

• Application Process Assistance:

1. Expert guidance and support throughout the Hero MotoCorp Dealership application process.
2. Timely submission of accurately filled-out forms.

• Legal Compliance Check:

1. Comprehensive review to ensure your business meets all legal requirements set by Hero MotoCorp.

• Documentation Services:

1. Assistance in compiling and organising all required documents for the dealership application.
2. Verification of completeness and accuracy.

• License Procurement:

1. Facilitation of the licensing process, including obtaining all required licenses efficiently.

• Legal Criteria Evaluation:

1. Evaluation of your business against Hero MotoCorp’s criteria, addressing potential issues.

• Financial Advisory:

1. Transparent breakdown of Hero Dealership costs and financial planning assistance.

• Training Compliance:

1. Assistance in ensuring your business complies with Hero MotoCorp’s training requirements for franchisees.

• Legal Representation:

1. Representation in legal matters related to Hero MotoCorp Dealership, protecting your interests.

• Dispute Resolution:

1. Assistance in resolving any legal disputes arising during or after the dealership registration process.

• Ongoing Legal Support:

1. Continuous legal support throughout your Hero MotoCorp Dealership, addressing any legal issues.

• Customised Legal Advisory:

1. Tailored legal advice based on the specific needs and challenges of your Hero MotoCorp Dealership.

Licenses and Business Registrations

• Business Registration:

Assistance in registering your business entity as required by the local regulations.

• Trade License:

Facilitation of obtaining a trade license to operate as a Hero MotoCorp dealership.

• Franchise Agreement Review:

In-depth review of Hero MotoCorp’s franchise agreement to ensure clarity and understanding.

• Tax Registration:

Guidance on tax registration and compliance to meet statutory requirements.

• Permits and Clearances:

Assistance in obtaining any additional permits and clearances necessary for your dealership.

• Environmental Clearances:

Ensuring compliance with environmental regulations and obtaining necessary clearances.

• Head Office Interaction:

Liaison services with the Hero MotoCorp head office for legal matters and queries.

• Contact Center Support:

Dedicated contact centre support for any legal inquiries related to your Hero MotoCorp Dealership.

Conclusion

With Vakilsearch by your side, your Hero MotoCorp Dealership journey is not just about bikes; it’s about a legally sound and successful business venture. Trust us to handle the legal intricacies while you focus on driving your business forward.

FAQs on Hero MotoCorp Dealership

What is the profit of a Bike dealership?

Profit margins for bike dealerships can vary depending on several factors, like bike selling price, location, operating costs, service revenue, and volume of sales. Typically, profit margins for entry-level bikes (below INR 50,000) range from 3-4.5%, while bikes between INR 50,000-75,000 can see margins reach 3-6%. However, remember that dealership expenses and operational costs also play a crucial role in determining final profit.

What is the initial investment required to start a MotoCorp franchise dealership?

While Hero MotoCorp doesn't operate through a franchise model, becoming an authorised dealer can require a significant investment due to various factors. Estimates put the initial cost range between ₹50 lakhs and ₹1.5 crores, covering expenses like land lease/purchase, showroom & service centre infrastructure, inventory of bikes and parts, operational costs, and employee salaries. This range can vary depending on location, dealership size, and type.

How long does it take to get approval for a MotoCorp franchise dealership?

The approval process for becoming a Hero MotoCorp dealer can take some time, typically ranging from several weeks to a few months. This timeframe depends on the completeness of your application, due diligence by Hero MotoCorp, and matching your proposal with their specific needs and market requirements. Be prepared to submit detailed information about yourself, your proposed location, financial records, and business plan.

What kind of support does MotoCorp provide to its franchise dealers?

Hero MotoCorp offers various support systems for its authorised dealers, including:

• Training programs

: Extensive training for sales staff, technicians, and management on product knowledge, sales techniques, service procedures, and brand guidelines.

• Marketing and advertising support

: Brand-level marketing campaigns and localised promotional efforts to drive sales and brand awareness.

• After-sales service support

: Technical expertise and assistance for service centres to ensure quality repairs and customer satisfaction.

• Inventory management guidance

: Help with ordering and stocking bikes and spare parts to optimise inventory levels and avoid shortages.

• Financial assistance

: Potential access to financing options and partnerships with Hero MotoCorp's financial arm, Hero FinCorp.

Can existing automotive dealerships convert to a MotoCorp franchise dealership?

Yes, existing automotive dealerships with a good track record and relevant experience can apply to become authorised Hero MotoCorp dealers. However, they will need to meet the same criteria as new applicants, including demonstrating financial stability, having a suitable location, and fulfilling Hero MotoCorp's dealership requirements.

Are there any territorial restrictions for opening a MotoCorp franchise dealership?

While not technically franchised, Hero MotoCorp considers dealership placement strategically to avoid oversaturation in specific areas. This means territorial restrictions might exist depending on market needs and existing dealership coverage. You should discuss potential locations with Hero MotoCorp representatives during the application process.

What training programs are provided to MotoCorp franchisees?

As mentioned earlier, Hero MotoCorp offers various training programs for its authorised dealers. These programs cover different aspects like:

• Sales training: Product knowledge, customer service skills, sales techniques, and negotiation strategies.
• Service training: Technical training for mechanics on repair procedures, diagnostics, and maintenance of Hero MotoCorp bikes
• Management training: Financial management, operations management, human resource management, and dealership leadership skills.
• Brand training: Understanding Hero MotoCorp's brand values, vision, and customer expectations.

How Is Hero Dealership Profitable?

The profitability of a Hero MotoCorp dealership depends on several factors:

• Sales volume: Higher sales of bikes, especially higher-priced models, contribute directly to higher profits.
• Service revenue: Revenue generated from servicing and maintenance of bikes adds to the profit margin.
• Cost management: Efficiently managing operational costs like staff salaries, marketing expenses, and inventory purchases improves profitability.
• Location: Dealerships in strategic locations with high customer traffic and demand for Hero MotoCorp bikes have better profit potential.
• Customer service: Building customer loyalty and repeat business through excellent service can lead to increased sales and brand advocacy.

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