The electric vehicle (EV) business in India is growing fast. The continuous rise in fuel prices, government grants, and increasing awareness about sustainable solutions permit EVs to be more prominent today than they were estimated to be in the future. It’s evident that starting an EV dealership has crossed your mind, but the investment scares you.
If that is the case, then you clearly have not heard the best part—getting started does not require hundreds of crores.
Setting up an EV dealership business can be done with little investment and still yield a good profit.
Advantages of Opening an EV Dealership
Before looking into how to set up a business, let’s look at the reasons why this is a fantastic business opportunity for you:
✅ Favourable Growth– There is an expected growth of 49% in India’s EV industry between 2022 and 2030.
✅ Government Schemes – Schemes such as FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles, is a scheme launched by the Government of India. It gives a boost to the development of Electric Vehicles) and other state EV policies provide subsidies, tax refunds, and various perks.
✅ Reduced Costs – EVs are less costly to maintain compared to fuel-powered cars.
✅ New sources of Income – The Sale of EVs along with charging stations, battery swapping stations, and accessories can provide good returns.
The next issue is figuring out ways in which one can invest a little money and put up an EV dealership.
Step 1: Picking an EV brand and category that suits you best
The investment needed varies across different EV models. To start, consider rolling out investment for two or three-wheelers instead of moving to more costly four-wheelers.
Here’s how to narrow down your choices:
✔️Electric Two Wheelers (E-scooters, e-bikes) – Require less investment, but are in high demand and suitable for day-to-day users.
✔️Electric Three Wheelers (E-rickshaws) – These are widely accepted by small businesses as well as in last-mile delivery.
✔️Electric Four Wheelers – Although these demand a heftier investment, the long-term profits are higher.
Focus on emerging EV companies that are willing to offer dealerships with low initial payments and subsidized payment methods.
Step 2: Look for a dealership that allows you to pay low franchise fees
Numerous electric vehicle brands have a dealership option that comes with reasonable franchise charges. Some brands have even waived off charges for dealerships located in new regions. Here’s what you need to check:
✔️Franchise Fee & Security Deposit – Certain brands charge replacement fees as low as ₹5-10 lakh.
✔️Profit Margins – Preferably target brands that offer margins capturing at least 8-12% profit per vehicle.
✔️Inventory Model – Some companies allow you to deal on an order basis as opposed to stockpiling vehicles.
✔️Marketing & Training Support – These set out brands that help with advertising as well as franchisee set up to manage your finances.
Several well-known EV brands that offer dealerships at reasonable prices include:
✔️Okinawa: This company has a strong reputation for electric scooters.
✔️Hero Electric: This brand has low investment requirements for dealerships.
✔️Ampere Electric: This emerging brand offers flexible dealership options.
✔️Citizen Care EV: This is dealing with customers at a great pace. It provides flexible dealership options and guaranteed support.
Step 3: Find An Affordable Location
You neither require a large outfitted showroom nor a big storage area. Simply pick a booth for rent in a place where there are higher chances of foot traffic. Search for:
✔️Space of 500 to 1000 square feet.
✔️Close to business districts, colleges, or residential regions.
✔️Somewhat inexpensive areas that are well connected.
✔️Shared premises with a service center.
✔️If showroom rent is too high in your city, you can balance by adopting an online-first model. You can also use a small booth that customers can visit for test rides.
Step 4: Optimize Inventory And Cut Costs
Skip the models that you need to stock and instead start with a few demonstration vehicles. Some brands do offer dropshipping models that are preferable as you do not have to spend on warehousing units.
You can also partner with finance companies to offer affordable EMIs which allow you to gain more customers with little investment in fleet.
Step 5. Utilize Government Subsidies.
The Government is giving out easy subscriptions to help boost EV uptake. Here’s what you can get:
✔️FAME II Subsidies – Customers can claim ₹50,000 on two-wheelers and ₹1.5 lakh on four wheelers.
✔️State Subsidies – EV additional subsidies are provided by the states of Delhi, Maharashtra, Tamil Nadu, and Texas.
✔️GST Benefits – Electric Vehicles enjoy a GST of only 5%, whereas petrol/diesel vehicles are charged 28%.
✔️Loan & Interest Benefits – EV dealership business loans are offered at subsidized interest rates.
These incentives lower the cost your customers need to pay out of pocket, which makes your dealership competitive.
Step 6. Use Imaginative Local Marketing Strategies. Target Local Consumers and Businesses with a Minimal Budget
Marketing doesn’t have to be expensive. Here are some affordable solutions:
✔️Social Media Marketing – Integrate Facebook and WhatsApp advertisement campaigns that target local sales.
✔️Referral Discounts – New customer onboarding bonus can be paid to customers that bring new customers.
✔️Test Ride Events – Advertise free test rides in colleges, tech parks, and malls.
✔️Partnerships – Work with local delivery services, local stores, and fleet management companies.
✔️Local SEO – Improve your Google Business Profile to ensure local customers can find your dealership quickly.
Step 7: Integrate Other Income Opportunities
Below are some of the areas which can allow you to increase profits apart from selling orders of electric vehicles:
✔️EV Charging Stations – Opening a simple charging kiosk will earn you around 10-20 INR per charge.
✔️Battery Swapping Service – Make profits from owners of commercial e-rickshaws and e-delivery vehicles.
✔️EV Accessories & Spare Parts – Sell spares like helmets, chargers, insurance and extended warranties.
✔️Servicing & Repairs – Beauticians may be contracted or your staff may be trained to do minor works.
Services like these will give you positive cash flow regardless of how many vehicles you sell.
What Are Your Possible Earnings?
Your revenue will depend on the types of additional services you offer, the region, and your EVs. Here’s a typical approximation:
✔️Two-wheeler dealership: ₹5,000–₹10,000 profit for each sold vehicle.
✔️Three-wheeler dealership: profit from sale is up to ₹20,000.
✔️Charging station income: ₹25,000–₹50,000 per month depending on placement.
✔️Battery swapping: paying users ₹50 per swap makes it possible to earn over 40,000 a month if the business is scaled.
You can cover costs within 6 -12 months with sound investments and low budgets in advertising.
Is It Worth It?
If you know how to correctly invest and follow these points, starting your own electric vehicle dealership can be a very lucrative option:
✅ Choose an electric vehicle category and brand that is most appealing to you.
✅ Pick inexpensive options for dealership franchises.
✅ Choose a showroom location or build an online presence.
✅ Use subsidies offered by the local governments to help with expenditures.
✅ Advertise in a clever, specific and localized manner.
Expand by including sources of income such as installation of charging stations and repair services.
The expansion of India’s EV market signifies that the time for venturing into this industry is thus ripe. So, the question is, are you ready to enter the EV realm?
Stay tuned for more such insights on EVs. Till then – take care!
For more info :
You can visit – https://www.citizencareev.com/about-us/
Call us at – +9172958 54111
