Total Investment Required
- ₹40 lakh to ₹1.5 crore, depending on:
- Location (Tier 1 vs Tier 3 cities)
- Size of showroom & service center
- Inventory and working capital
Monthly Income & Profit Estimation
Example 1: ₹50 Lakh Investment
- Average Annual ROI: 18% to 20%
- Annual Net Profit: ₹9–10 lakh
- Monthly Income: ₹75,000 to ₹83,000
Example 2: ₹1 Crore Investment
- Average Annual ROI: 18% to 20%
- Annual Net Profit: ₹18–20 lakh
- Monthly Income: ₹1.5 lakh to ₹1.66 lakh
Revenue Sources
- Vehicle sales commission: ₹8,000–₹12,000 per unit (depends on model)
- Spare parts and accessories: Higher margins (20–30%)
- Service and repairs: Consistent revenue stream
- Finance & insurance: You earn commissions per deal
Breakeven Point
- Breakeven Period: ~2 to 3 years
- This depends on location, local demand, and how efficiently the dealership is run.
Monthly Revenue Estimate Table
| Investment | Avg ROI (%) | Monthly Income |
|---|---|---|
| ₹40 lakh | 18–20% | ₹60k – ₹66k |
| ₹50 lakh | 18–20% | ₹75k – ₹83k |
| ₹1 crore | 18–20% | ₹1.5L – ₹1.66L |
| ₹1.5 crore | 18–20% | ₹2.25L – ₹2.5L |
Conclusion
A Hero dealership can earn ₹75,000 to ₹2.5 lakh per month depending on investment size and city. The annual ROI ranges from 18% to 20%, making it a stable and profitable business if executed well.
Leave a Reply