BMW Dealership Cost In India: Fees, Requirements, Apply Process

BMW, also known as Bayerische Motoren Werke AG, is a big company from Germany. They make fancy cars and motorcycles. Their main office is in Munich, Bavaria, Germany. They are very famous for making luxury cars and bikes. BMW also owns other brands like MINI, Rolls-Royce, and BMW Motorrad. In India, BMW Group sold many cars in 2023, breaking their previous records. They sold 22,940 units, 19% more than the previous year. If you want to open a BMW dealership in India, we can give you an idea about the costs, requirements, and how to apply.

BMW Dealership Fees

Depending on size, the dealership’s insides will cost between 1.5 to 2 crores. The location, staff, and dealership should look good according to the latest company standards. The service center will cost at least 3 crores. Since BMW cars are usually delivered quickly and not kept in stock due to many models and variants, only a few might be stored, and this area’s cost depends on where it is. Considering all these factors, a rough estimate suggests you’ll need at least 10 crores or more.

Remember, this is just an estimate for informational purposes, and the actual numbers can vary depending on the location!

Requirements for BMW Dealership

To open a BMW dealership, you need to consider a few things:

1. The city where you plan to set up the dealership matters. It depends on whether it’s a big city or a smaller one.
2. Determine if it will be the first BMW dealership in the city or if there are already others.
3. Look at how many BMWs and cars from other brands like Mercedes, Audi, or Volkswagen are already being driven in the city and nearby areas.
4. Check how far the nearest other car dealerships are from your proposed location.
5. Decide if you’ll own the land where the dealership will be or rent or lease it.
6. Think about where exactly in the city you want to put the dealership.
7. Make sure you have enough land for the dealership per BMW’s requirements.
8. Consider where you’ll sell new cars and where you’ll provide services for both new and existing BMWs.
9. See if enough people in the city can work in sales, service, and other roles at the dealership.
10. You can either own the land or rent/lease it for the dealership.

Apply Process for BMW Dealership

To apply for a BMW Dealership, remember that if you’ve had a car dealership before, BMW might consider your application. Follow these steps:

• Go to the BMW India website or click on this link: https://www.bmw.in/en/integration/apply-for-dealership.html
• Fill out the Dealership inquiry form with your title, name, address, contact details, and business type.
• If you meet the requirements, BMW will contact you for more details.

Pros and Cons of Opening a Car Dealership

Pros

1. Car dealerships can make a lot of money, especially by selling new and used cars, offering financing, and selling extra stuff like warranties and maintenance plans.
2. Dealerships usually follow a set way of doing things, with help from the car manufacturers. This includes training, advertising, and getting money to buy cars.
3. Strong connections with customers can bring them back to buy more, tell their friends, and stick with your dealership. Giving good service and having a good reputation is super important.
4. Some car companies give dealerships exclusive areas in which to sell. This means less competition from other dealers selling the same brand nearby.

Cons

1. Starting a dealership takes a big investment upfront for things like selling property and cars, hiring staff, and getting equipment.
2. How many cars get sold can change a lot based on how the economy is doing. If things aren’t going well, fewer people buy cars.
3. Having many cars sitting around means they can lose value over time. If nobody wants the models you have, it’s hard to sell them.
4. More people are buying cars online or straight from the company now. This makes it tough for traditional dealerships to compete.

Conclusion

So, running a BMW dealership in India costs a lot of money. It depends on where it is, how big it is, and what deals you have with BMW. At first, you’ll need to pay for things like land, building, setting up the showroom, hiring staff, and buying cars. Then, you’ll have to keep paying staff wages, advertising, fixing things, and other running costs. To get the most accurate information, it’s best to contact BMW directly.

Suhas Harshe

Meet Suhas Harshe, a financial advisor committed to assisting people and businesses in confidently understanding and managing the complexities of the financial world. Suhas has shared his knowledge on various topics like business, investment strategies, optimizing taxes, and promoting financial well-being through articles in InvestmentDose.com