The thought of beginning a BMW franchise in India can be a good business venture. BMW is among the well-known producers of luxury cars. This company is reputed for quality and reliability. If you are considering owning your own BMW franchise, it is crucial to know the total BMW franchise cost in India and the necessary steps to get into the endeavor.
What Is the BMW Franchise Cost in India
The BMW franchise cost in India depends on various factors. The key expenses are as follows:
- Initial Franchise Fee
The franchise fee is the initial amount of money you’d have to pay to start the franchise process. This fee will enable you to use the BMW brand name and tap into their business model. The initial franchise fee to acquire a BMW dealership may vary from INR 2 crore to INR 5 crore in India depending on the location and size of the dealership. - Showroom and Infrastructure Costs
BMW is a luxurious car, therefore the establishment of its dealership involves a lot of capital investment in infrastructure. You will have to acquire a showroom that will conform to BMW’s standard operating procedures across the globe. It should also be large, perfectly designed, and situated in a strategic position or preferably in a busy area or complex.
- Showroom Size: A standard showroom of BMW in India should be a minimum of 15000 to 20000 sq/ft.
- Construction and Interior: The estimated cost incurred for constructing a high-end showroom may take approximately INR 3 crores to INR 5 crores. The interior designing and furnishing can cost around INR 1 crore to INR 2 crore.
3. Inventory and Vehicle Costs
BMW Franchise entails that a company needs to have cars in its inventory to showcase and sell to the consumers. Inventory expense is a remarkable component of the BMW franchise cost in India. An initial stock of vehicles can approximately take anything between INR 20 crore to INR 30 crore, depending on the number and variety of models.
- Staffing and Training Costs
The BMW franchise requires efficient staffing to be profitable. You will have to spend a lot of money in the hiring and training process so that the staff meets the BMW standard in terms of service delivery and product knowledge.
- Staff Salaries: The salary of the staff can come up to INR 5 lakh to INR 10 lakh monthly depending on the size of the dealership and the experience level of the employees.
- Training: As per the industry norms, BMW gives special training to the sales and technical people of the company for which the expense can go up to INR 10 lakhs every year.
Other Costs to Consider
- Marketing and Advertising: Advertising your dealership can be done through various mediums. It will cost you anywhere from INR 50 lakh to INR 1 crore per annum.
- Operational Costs: These include electricity, water, phone bill, maintenance costs, insurance, etc which may take INR 1 Crore per year.
Total Investment
Based on all these factors, the total BMW franchise cost in India can be estimated to be anything from INR 30 crore to INR 50 crore or even more. These costs are the initial franchise fee, infrastructure cost, stock, employees, and other operational costs.
Conclusion
So, opening a BMW franchise in India entails a pretty big amount of capital investment but at the same time has a high potential of returns. If you are planning to venture and invest in this franchise, it will be helpful to know the BMW franchise cost in India so that you are guided accordingly. By locating the dealership at the right place, hiring the right people, and using proper advertising and marketing techniques, you can make the BMW car business fruitful.
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