KIA Motors Dealership Showroom: Requirements, Investment, Profit, Applying Process and Contact Details
The automobile industry in India is the fourth biggest producer in the world according to reports of 2021. The numbers continue to rise every day with each new model of vehicle being launched in the Indian market by both Indian companies and foreign companies.
Are you are passionate about the automobile, looking for a dealership opportunity in this industry? Have you been looking for popular international automobile dealership in India? Then starting a Kia Motors dealership business can be a very good option for business aspirants.
In this article, we will guide you in a simple way about how to take Kia dealership, along with its requirements, investment, profit, FAQ and contact details. Our motto behind writing this blog is to make you understand about the KIA dealership and you can choose an ideal auto dealership for business.
About the Company
KIA is a South Korean car company which is owned by Hyundai Motor. KIA Motors had entered the Indian market on May 2019 following a declaration of the development of 536-acre manufacturing unit in Andhra Pradesh. KIA Motors was recorded its highest monthly sales in September 2020. It sold 18,676 cars in a single month.
Indians were searching for an ideal compact SUV and this is where KIA launched its Seltos which turned into a well known vehicle among Indians. Apart from Seltos, KIA has two different models in its portfolio – compact SUV – Sonet and MUV Carnival. KIA has more than 330 showrooms across 225 cities, the company planning to grow and expand the network in India. KIA is currently aimed to walk into regions like Northeast India, Northern Telangana, Karnataka and Western Rajasthan for new dealership.
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Key Factors of KIA Motors:
|Trade Name||Kia Motors|
|Founded||1944 in South Korea|
|Founders Or Parent Company||Hyundai Motor Group|
|Corporate Headquarters||Seoul, South Korea|
|Number of Dealer Point||Over 330+ Dealers in India|
|Product offering||SUV, Sedans, Electric Cars, etc.|
|Revenue||69.86 trillion (2021)|
Why choose KIA Motors Dealership ?
Owning a KIA dealership is a good choice for any interested people. There are some vital points why choose KIA dealership are given below-
- KIA Motors has a strong presence and brand value in the market. KIA launched the cars for all types of customer, so has a large customer base.
- The company offers finance support with low interest rate to their dealers than any bank. It is one of the major reasons to own a KIA dealership.
- KIA motors offer a wide range of products and services. Customer need not bother about the service and maintenance.
- KIA has a very popular and presents user friendly cars for all groups. As per the present report KIA sold 24,600 cars in February 2023.
- It has the high sales ratio as per the report of previous years. So, it has a good profit and margin for dealers.
- It is very good option for any investor to put his fund in KIA dealership.
- KIA has launched compact SUV like Seltos, Sonet for medium group customers at cost-effective price. So, it is the key point for its popularity and development of KIA Motors.
Eligibility Criteria for KIA Motors Dealership:
- Interested candidates are need to be dedicated themselves to the KIA dealership business and follow the company guidelines and maintain the standards.
- |The candidate should have the passion to work in the automobile business and ready to run the business for long term.
- The interested candidate must have the skill and leadership quality to operate a KIA dealer showroom.
- The candidate should have enough knowledge and experience of working in an automobile sector.
Requirements of KIA Dealership:
- The candidate must fulfill all the criteria for KIA dealership.
- The applicant should be financially capable and have great credit to begin a KIA dealership and prepared to invest at least 5 Crore – 10 Crore, excluding the cost of area.
- Candidate must have sufficient space to open a showroom, service center, and a little area for spare parts storage for a KIA showroom.
- It is advised to the applicant to choose a suitable area for the showroom that meet KIA Motors requirements like high visibility, easy accessibility, with all necessary facilities of a showroom.
- For a KIA dealership business 10-15 staffs are required to run the business.
Manpower required for KIA Motors Dealership Showroom:
Courteous, efficient and trained manpower is vital for maintaining the successful operation of the dealership and achieving high levels of customer satisfaction.
- Sales Coordinator
- Sales Consultant
- Workshop manager
- Service Advisor
- Maintenance Staff
KIA Motors Dealership Cost:
The KIA dealership investment will depend upon the selected dealership model, city, space etc. To become an authorized KIA dealer, one would require at least 5 -10 crores rupees. There are a few things engaged with setting up a showroom in India, which includes costs like rent, worker salary, showroom area development costs, initial stocks of vehicles, spare parts, and other various costs. This initial investment includes brand deposit fee of 20-30 lakhs, interior decoration cost of 40-45 lakhs, spare parts of 50 lakhs, initial showroom working fund of 1 crore, initial stocks of 4-7 crores.
Space Required for KIA Motors Dealership:
As we told you that KIA Motor Company is a very high level company in India, but it also does your work where it sees growth in the business. Talking about KIA Motor Company, this company chooses commercial center (commercial area) to open KIA Motors dealership Showroom regardless of the place. For this, the company has also formed its own team, which will take stock of the place to open the dealership. And later chooses the place, to open a KIA Motors Dealership, you must have space in a commercial area as given details below:
- For Showroom: 6000 sqft and front should be 80 sqft (minimum)
- For Workshop: 8000 sqft – 10000 sqft (Minimum)
- For spare Parts: 500 sqft – 1000 sqft (minimum)
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- ID Proof: Aadhaar card, Voter Card, PAN Card
- Address proof: Ration Card, Electricity bill,
- Bank account details with Passbook details
- Passport size photographs
- Email ID
- Phone number
- Property documents (complete property documents with title and address)
- Lease agreement (if any)
- All types of NOC
- GST Number and GST Certificate
- Trade License
KIA Motors Dealership Profits and Margin:
For any business it is little difficult to say about the accurate profit margin, because there are lots of things those declare the profit of any business. In KIA dealership the profit depends upon location, customer footfall, market potential, dealer’s capability to run the business.
Company will provide average profit = 3% – 4% (depends on vehicle)
Net profit on Spare Parts= 20% – 25% on MRP
Profits and margin may vary according to the location. So, if you want more information about the profits and margin then must contact to the company. Or visit its official website: Click Here.
Revenue Sources for KIA Motors Dealership:
If you will take KIA Motors Dealership then you can generate you revenue from many sources. Revenue channels include sale of vehicles, service of vehicles and sales of parts, giving you a continuous revenue cycle that is independent of market scenario which is given below with the margin:
- Vehicles Sales (3%)
- Retail Finance (up to 3%)
- Insurance (up to 40%)
- Vehicle Servicing
- Parts (25%)
- Engine Oil
- Value Added Services
Risk Factors of KIA Motors Dealership:
When you are planning to start your business in an automobile sector then you must know its risk factors because you are going to invest huge amount in it. Let’s see some of the major risk factors of automobile dealership.
- It is very important to note that the total initial investment may come around 10 crores rupees; however larger part of investment goes into the initial stocks. It will be very challenging to run the showroom with a limited fund or without a proper back up.
- Here we are giving an initial investment of KIA dealership of 10 crores rupees. Here we have not included the expense of land of showroom, staffs salary etc. So, you have not got any accurate information regarding the investment. So, without direct meeting with the company personnel you should not proceed.
- The dealer applicant should conduct a comprehensive market survey and market research before opening a showroom. There are many factors are there so, without detail knowledge it is risky.
- Without prior knowledge about the automobile sector you should not invest blindly for any automobile dealership. Get enough experience then proceed into this segment.
KIA Motors Dealership Support:
The company offer support in interest cost of dealer stock, including cars for physical and transit stock.
- Unutilized dealer funds lying with the organization have proactively been dispatched back to their current accounts.
- All the services claims for warranty have been credited to the dealer’s account.
- The company said that warranty payments have been credited to dealers and the company would give clear on priority within 15 days post lock down for all dealers bill.
- KIA Motors offer all types of support in testing times and will look after all important stages to assist them in different situations.
- The company supports in all types of promotional activity and marketing campaigns.
- The company provides all types of catalog, leaflets, booklet etc. to their dealers.
- The company provides the detail required training program to the dealer to run the business successfully.
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How to apply for KIA Motors Dealership ?
If you are eligible to fulfill all the criteria then you can apply for KIA dealership. Here the online application process is given, please follow the steps-
- Click on the link of Dealership Application form: https://www.kia.com/in/discover-kia/kia-in-india/dealer-application.html
- Here you can see a general application form, which you have to fill up and click on the “Submit” button.
- Below this form you can see a “Download” button. It is the detailed application form in Excel format included few sheets. You have to download the form and fill all sheets carefully.
- After the complete form fill up you have to mail this application form to – email@example.com
- After submission of the form, the KIA team will contact you shortly and guide you.
- You can also contact the representative for more information. Call: 1800-108-5000 for Dealership query.
Process To get KIA Motors Dealership:
- First of all you have to apply for the KIA Motors Dealership. Then if company consider your profile for the dealership in your area then you’ll get a confirmation mail form the company.
- Company’s executive will explain you via call. If you’ll agree for the dealership.
- Then they will survey your area properly, make a plan and discuss with you.
- After a day, they proceed your process if you’ll agree.
- Now, the area manager will help you to setup your business and make the agreement.
- You have to pay some amount for the agreement.
- After getting approval you can start you showroom works.
- They’ll provide you training and a sales man will work with you.
- And the process take 30 days.
- So, after 45-60 days you can start you KIA Motors Dealership Showroom.
KIA Motors Dealership Contact Details:
If you have any query related KIA Motors Dealership then you may contact to the company via given details as I’ve mentioned below:
Email ID- firstname.lastname@example.org
Automobile companies usually don’t sell their franchise instead they make dealers and awarded dealership to a deserving person that they believe will represent their brand, passionate about the automobile business, has the capacity to invest and capable enough to run the dealership. Most dealerships are privately owned either by any person, corporations.
You must go through the deep research and enough information about the company. So, before proceeding you must know its pros and cons, market demand, funding capacity etc. In this blog we have provided related information about Kia dealership. Hope after reading the blog you have got some knowledge about KIA dealership. Thanks for reading the blog.
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FAQ(Frequently Asked Question):
Q) Where KIA Motors was founded?
Ans- KIA Motors was founded in 1944 in Seoul, South Korea.
Q) Where is its HO?
Ans- The HO of KIA motors is situated in Seoul, South Korea. It has many manufacturing units in global market like- US, South Korea, India, Canada and Europe.
Q) Why is KIA famous for?
Ans- Kia Motors was founded in May 1944. It is Korea’s oldest manufacturer of motor vehicles which made bicycles and motorcycles earlier. KIA has owned by the global Hyundai-Kia Automotive Group and it becomes the world’s fifth largest automobile manufacturer.
Q) What is the cost of KIA dealership in India?
Ans- the initial cost of KIA dealership is minimum 5-10 crores, excluding the land amount.
Q) What is the full form of KIA?
Ans- The full form of KIA is “Killed in Action”.
Q) Why KIA is so popular and successful in India?
Ans-One of the main reason for KIA’s success in India is its product mix for all segments of customers. KIA launched mid- SUV car segment and that is very demanding. KIA also launched MPV for premium customers and it is also very popular segment. KIA understands the choices of the customer and market demand and we can see its result in the Indian market.
We hope you enjoyed reading this blog entry on the KIA Motors Dealership. For additional useful articles like this, keep visiting YMW Solutions.
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