“Getting an Apollo Tyre dealership in India is an excellent opportunity for entrepreneurs and small business owners to capitalise on the growing demand for high-quality tires in the country. This blog covers the steps and requirements for becoming an Apollo Tyre franchisee, as well as the benefits and profit margins associated with this business opportunity”.
Apollo Tyre is an Indian tyre manufacturing compayn founded in 1972, having its headquarters in Gurugram, Haryana. The company has a presence in India, Hungary, and the Netherlands with a maximum of 5 units located in India. The company employs over 18,734 employees and generates a net income of ₹350.19 crores as of 2021.
Apollo Tyre sells a wide range of tyres from truck tyres to motorcycle tyres. It has more than 6000 dealerships in India out of which over 2500 are dedicated to Apollo Tyre sales. Read the complete blog to find out more about Apollo Tyre dealerships.
Did you know that Apollo Tyres is the world's seventh-largest tyre manufacturer?
Benefits of Apollo Tyre Dealership
Apollo tyre is one of the leading tyre manufacturing companies. It has a reputed brand name, which will provide your business with the instant trust that customers have in the brand, thus increasing your credibility. This will prevent you from the hassle of building a brand name from the start.
The other main reasons to start an Apollo tyre dealership are as follows:
-
The quality of the products produced by Apollo Tyre is top-notch, so you can rest assured that defects will be minimal, and even when a defect is identified it will be addressed by the company at the earliest.
-
The products made by Apollo Tyre are made to last and keep the customer’s safety as a top-most concern, thus increasing customer satisfaction and providing you with a constant flow of sales.
-
Apollo tyre provides excellent acceleration and braking. This is the most significant factor that customers look for while purchasing tyre. Therefore, the customer will ask for the Apollo tyre themselves and you do not need to put a lot of effort into marketing.
-
A world-class manufacturing warranty of up to 1,00,000 kilometres is included with every Apollo tyre.
Also Read: Learn how to start a successful tyre recycling business in India
The Basic Eligibility Criteria for Starting an Apollo Tyre Dealership
To start an Apollo tyre dealership you need the following things:
-
Applicants should be 21 years of age or older.
-
There should be no pending or completed criminal cases (in which the applicant is proven guilty) against the applicant.
-
The minimum qualification of the applicant should be SSC (Class 10th).
-
Applicant should have knowledge of the tyre business so as to run the business efficiently and effectively.
What Licenses and Registrations are Required for an Apollo Tyre Dealership?
The following documents are mandatory and will be required for the Apollo tyre dealership
-
Registration of establishment, for example, if a concern is a company, the company’s incorporation certificate is required. For a partnership concern, you will require a partnership deed.
-
A trade license issued by the local municipality (the district in which the establishment is located) of the business establishment.
-
Shop and establishment registration duly issued by the state government.
-
GST number.
-
Bank statements.
-
Income tax registration documents (PAN card) and returns for the prior year.
-
Proof of place of business (rent agreement or sale deed).
-
Documents related to the owner's qualifications (to gain a better understanding of the owner's qualifications).
-
Owner’s KYC (including PAN and Aadhaar card).
Also Read: 10 Best Tyre Brands in India - Top Tyre Companies in 2023
What Investment is Required for an Apollo Tyre Dealership?
The cost may depend on many factors including location, size, etc. The estimate of the cost may range from ₹20 Lakhs to ₹25 Lakhs an indicative list of expenses and infrastructure required is as follows:
-
Cost to rent or buy a place for the shop (depending upon the location and the size of the shop). Buying a place will cost more than renting it, so it is generally recommended to rent a place. However, if you already have a place, you can use it or buy it if you prefer buying instead of renting it.
-
Infrastructure or interior cost (interior will be done as per the company’s guidance)
-
Security deposit (as required by the company) ranging from ₹2 Lakhs to ₹10 Lakhs
-
Vehicle cost (if needed) for the transportation of the tyres
-
Labour or payroll cost (for the employees employed by the dealership), initially it is recommended to have 3 to 5 employees to perform the necessary functions, but the number can be increased in the future considering the business that you are able to get from the dealership.
What Profit Margin to Expect at Apollo Tyre Dealership?
Profit is the result of the hard work and effort you put into your business.
You can expect 10 to 15% profit from an Apollo Tyre dealership if you put in the right effort.
However, you should be aware of the fact that like every other business, the profit margin is directly proportional to the sales made.
In addition, it is impacted by other factors such as payroll costs for employees and other variable and fixed costs.
Therefore, to increase the profit margin you have to pay attention to the costs incurred. You have to identify activities that do not add value and eliminate them. In addition, you need to try to do other activities as efficiently as possible.
Additionally, you need to try innovative marketing strategies to achieve a higher level of sales. Profits are higher when sales are higher.
You can provide quantity discounts to customers to promote higher sales. This may reduce your profit margin but will increase your profit in absolute figures.
What is the Space Required for an Apollo Tyre Dealership?
The space required will depend upon the size of the dealership that you want to open.
However, the minimum space required to open the Apollo Tyre dealership shop is 800 to 1200 square feet if you are looking to sell only Apollo Tyre.
However, if your vision is to sell other automobile accessories along with Apollo Tyres, which many of the dealerships do, then you will need more space to accommodate those accessories in such a way that the business of Apollo Tyre remains unaffected.
Also Read: What Is the Process for Tyre Production Companies in India?
How to Apply for an Apollo Tyres Dealership?
After getting all the documents and shop space, the most pertinent question is how you can apply for an Apollo Tyre dealership. The process is pretty straightforward.
1. Call Apollo Tyres through the Official Website: First, you need to contact the Apollo Tyre sales manager. You can get his number by filling out the query form on Apollo Tyre's official website. Alternatively, you can call the customer care number of Apollo Tyre which is 1800 212 7070.
2. Check Your Eligibility with Them and Get Guidance: Once you contact Apollo Tyre, they will guide you regarding your eligibility to start a dealership business considering factors such as the number of existing Apollo Tyre dealers in your area, your experience and qualifications, financial background, etc.
Conclusion
Becoming an Apollo tyre dealer is a great way to expand your business and offer your customers a high-quality product.
By following the steps outlined in this blog, you can ensure that you are well-prepared to take on the role of an Apollo dealer. This includes researching the company and its products, preparing a business plan, and meeting the requirements set by the company.
Remember to also be persistent and network with existing dealers to gain insight and support. With the right approach and a bit of effort, you can successfully become an Apollo tyre dealer and start reaping the benefits of this partnership.
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium enterprises (MSMEs), business tips, income tax, GST, salary, and accounting.
