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How to Open Ashok Leyland Dealership and Authorized Service Center

The automotive industry in India has been experiencing significant growth over the years. The infrastructure of the country is increasing and there is a rise in demand for commercial vehicles. As a result, starting an Ashok Leyland Dealership and Authorized Service Center business can be a lucrative venture. This article will provide a comprehensive guide on how to establish an Ashok Leyland Dealership and Authorized Service Center business in India.

Ashok Leyland Company Details

pic of ashok leyland vehicles

Pandit Jawaharlal Nehru, India’s first Prime Minister persuaded Raghunandan Saran, an industrialist, to enter automotive manufacture. In 1948, Ashok Motors was set up in Madras for the assembly of Austin Cars. The Company’s destiny and the name changed soon with equity participation by British Leyland and Ashok Leyland commenced the manufacture of commercial vehicles in 1955.

At present Ashok Leyland is the flagship company of the Hinduja Group. The company is one of the largest commercial vehicle manufacturer brands in India.

Why Ashok Leyland Dealership and Authorized Service Center?

The commercial vehicle market is growing fast in India. As India is a developing country and a growing economy, the automobile industry as a whole is all set to grow. The commercial vehicle industry is expected to be the most profitable sector in the Indian large-scale industrial sector. Some of the major reasons of partnering with Ashok Leyland business model are as follows:

  • Established Brand: Ashok Leyland is one of India’s most respected and well-known automobile manufacturers.
  • Rising Demand: The demand for commercial vehicles is steadily increasing in India due to growth in various sectors such as logistics, construction, and infrastructure.
  • Comprehensive Product Portfolio: Ashok Leyland offers a diverse range of commercial vehicles, including trucks, buses, and light commercial vehicles.
  • Strong Distribution Network: Ashok Leyland has an extensive distribution network across India.
  • Support and Training: Ashok Leyland provides comprehensive support and training to its franchisees.
  • Profitable Business Model: An Ashok Leyland Dealership and Authorized Service Center offer a profitable business model.
  • Trusted Name in After-Sales Service: Apart from manufacturing high-quality vehicles, Ashok Leyland is also known for its exceptional after-sales service.

Read: Top Automobile Franchise in India

8 Steps to Start Ashok Leyand Dealership in India

1. Research and Planning

Before starting an Ashok Leyland Dealership and Authorized Service Center, thorough research and planning are crucial. Conduct market research to identify the demand for commercial vehicles and the presence of competitors in your target area. Select a strategic location with good accessibility and visibility for the dealership and service center. Ensure it adheres to Ashok Leyland’s dealership guidelines. Obtain the necessary licenses, permits, and clearances required to run an automobile dealership and service center in your locality.

2. Fulfill the Requirements:

To establish an Ashok Leyland Dealership and Authorized Service Center, you need to fulfill specific requirements:

  • Investment: The initial investment for setting up an Ashok Leyland Dealership and Authorized Service Center can range from INR 2 to 3 crores.
  • Space: You need to have a spacious area for the showroom, service station, and vehicle stockyard as per Ashok Leyland’s guidelines.
  • Infrastructure: Build or renovate the showroom and service center according to the specifications provided by Ashok Leyland.
  • Manpower: Hire experienced staff, including sales executives, technicians, and administrative personnel.

3. Obtain Franchise Approval

Contact Ashok Leyland’s franchise department to express your interest in starting a dealership and service center. The company will evaluate your application based on certain criteria, including financial stability, location, infrastructure, and business acumen.

4. Arrange Funds

Arrange the necessary funds for the initial investment. You can approach banks and financial institutions for loans or explore financing options provided by Ashok Leyland.

5. Building the Infrastructure

If you are planning to open Ashok Leyand dealership business, build or renovate the showroom to meet Ashok Leyland’s standards. It should be spacious, well-lit, and designed to display the vehicles attractively. For Service center business, establish a modern and well-equipped service center with the latest tools and machinery for vehicle servicing and repair. Ensure that the service center complies with Ashok Leyland’s guidelines.

6. Staff Training

Train your staff to maintain the high standards expected by Ashok Leyland. Training should cover various aspects, including sales, customer service, and technical skills for vehicle servicing.

7. Marketing and Promotion

Develop a marketing plan to promote your dealership and service center:

  • Advertising: Utilize print media, digital platforms, and local advertising to create awareness about your Ashok Leyland Dealership and Authorized Service Center.
  • Customer Referral Programs: Offer incentives to customers who refer others to your dealership.
  • Participate in Local Events: Sponsor or participate in local events, such as auto shows, to showcase your dealership.

8. Launch Your Business

Host a grand opening event to inaugurate your Ashok Leyland Dealership and Authorized Service Center. Invite potential customers, local dignitaries, and representatives from Ashok Leyland.

Ashok Leyland Dealership Cost in India

You will need a minimum of Rs. 50 Lacs to open a Ashok Leyland dealership business. You would also require an area of 20,000 square feet to 25,000 sq. ft. for parking space and other infrastructure requirements.

Ashok Leyland Service Center Cost in India

The initial investment of starting Ashok Leyland service center ranges from Rs. 25 Lacs to Rs. 30 Lacs. You will also need to have an operational area of around 12,000 sq. for workshop and parking facilities. Inaadition, you must have sufficient working capital to manage day-to-day operations until the business becomes profitable. Working capital includes expenses such as rent, utilities, salaries, marketing, and other operational costs.

How to Apply for Ashok Leyland Authorised Service Centre

You can download Ashok Leyland service center/dealership application forms (PDF format) from the official website – www.ashoklayland.com The filled-up application form needs to be sent to the Regional Offices of the company. For the Ashok Leyland franchise, dealership, and service center send enquiries to [email protected].

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Frequently Asked Questions

What is the franchise fee for an Ashok Leyland Dealership and Authorized Service Center?

The franchise fee generally ranges from INR 10 to 20 lakhs, depending on factors such as location, dealership size, and services offered.

What are the space requirements for setting up an Ashok Leyland franchise?

Generally, the area required is around 2000 to 3000 square meters, including space for the showroom, service station, and vehicle stockyard.

What are the essential infrastructure costs for an Ashok Leyland franchise?

The infrastructure costs include the construction or renovation of the showroom and service center. Both should be well-equipped, modern, and designed according to Ashok Leyland’s standards.

How can I arrange the necessary funds for an Ashok Leyland franchise?

You can approach banks and financial institutions for loans or explore financing options provided by Ashok Leyland.

About Next What Business Research Team

The Editorial Staffs at NextWhatBusiness is a team of Business Consultants with years of experience in small and medium-scale manufacturing and service-based businesses.