How To Start An EV Franchise?

One of the most interesting business prospects in the new EV paradigm is establishing and running an EV franchise dealership. Entrepreneurs and auto aficionados are equally enthusiastic about the potential for electric vehicle franchises or dealerships in 2023 since electric vehicles are believed to produce a significant revolution in the mobility sector. Read this feature to know how to get started with an EV franchise.

How do I start an EV franchise in 2023?

The demand for next-generation electric vehicles, such as electric scooters, e-bikes, and electric cars, is propelling the expansion of the EV franchise and dealership business. The bulk of EV manufacturers is doing quite well since they have established a franchise network throughout India. Due to strong consumer demand, the EV industry is expected to generate significant revenue and use innovation to lower the cost of EVs across the country.

You must first choose whether you want to open a two-wheeler, three-wheeler, or four-wheeler EV dealership before you can open an EV franchise. You can use this guide for two-wheeler EVs like electric scooters and E bikes and find what will be the approximate EV dealership cost.

Requirements for starting an EV franchise

The following requirements need to be fulfilled before you move on to fill up the application for an EV franchise in your area. 

a.    You must have a graduation degree to move up in the criteria.
b.    To open an electric vehicle franchise, you must be at least 18 years old.
c.    To carry out regular business operations, you must possess excellent business acumen.
d.    You need to be very passionate about electric vehicles and technologies.
e.    You must have a service area and showroom close to the highway or main road.
f.    You must be able to invest at least Rs 30 – 40 lakh as part of the electric scooter dealership cost.
g.    The showroom, workshop, or service center must be properly electrified and supplied with water.
h.    You must possess all necessary technical and financial documentation.

Documents needed for EV franchise

a.    EV franchise license
b.    EV business registration (Sole Prop/Pvt. Ltd./LLP)
c.    Trade License from the local administration
d.    State Board's Shop & Establishment Registration
e.    GST registration
f.     IT Returns - to check your financial history
g.    Legal ownership of the land or lease agreements.
h.    Business Insurance

You can seek other national and regional banks or NBFC partners if you don't have the necessary finances to launch an EV franchise.

Space required to start an EV franchise in 2023

electric bikes in indiaTo start an EV dealership, around 1000–1500 square feet of area are required close to a main road or highway. This portion serves as the showroom, the service area, and the proper storage facility.

The showroom and workshop require the majority of the available area.

It should be noted that franchise availability and investment costs vary by brand. There will be a significant rise in both space and investment if you select a well-known EV brand.

Many emerging electric vehicle (EV) businesses in the nation offer franchise opportunities for just Rs.20 lakh. Electric bike dealership investment may vary from city to city and state to state. 

If you don't already have a showroom and service center, you'll need to rent one. If you're unsure of where your money will go, have a look at the list below.

a.    Minimum working capital
b.    Expenses on the interior decoration of a showroom
c.    Hardware and machinery for the workshop
d.    Expenses for the showroom/workshop lease
e.    Expenses for the showroom/workshop lease and other expenses

Rent for the showroom and service center/workshop, salaries for staff, purchases of goods, and other expenses make up the monthly costs.

Now that you are fully informed regarding the conditions/eligibility and the space required, you must decide which brand is best for you. There are numerous manufacturers or EV brands in India with a network of more than 200 dealerships. The following names are some prominent ones.

a.    Hero Electric: Over 460 dealers
b.    Greaves: 400+ franchise or dealers
c.    Okinawa: 300+ dealers
d.    AMO Electric Bikes: Almost 200 dealers across India in major towns and cities
e.    Revolt: 13 franchises across India
f.     Ather Energy: 36 dealers
g.    Pure EV: 162 dealers

Electric bike dealership apply: You can access the franchise or dealership application form on the brand's website by selecting a brand. Name, address, mobile number, email address, type of ownership, GST, and other fields are included on the form.

An additional questionnaire on your capabilities and experience in business and trade may be included in the application form.

The form must be completed and submitted.

An account manager or customer service representative will then get in touch with you within a few business days to move the deal forward. 

If you're interested in EV dealership: Apply For AMO Electric Bike Dealership

What is the profit margin for electric scooter dealership in India?

Battery innovation has been identified by an electric mobility company in India named AMO Mobility Solutions to lower costs and improve customer satisfaction, which has been requested by many EV franchises.

electric scootyTypically, a variety of things affect profit margin. It will primarily depend on the reputation of the manufacturer or brand. A high-end brand has greater market power because it is extensively engaged in marketing initiatives to establish an image. Dealerships for electric vehicles experience the same incidents.

A well-known brand might only provide the usual profit margin per unit. But the profit margin per unit will be bigger if you choose an emerging electric scooter manufacturer in India, like AMO Electric Bikes or Pure EV.

According to industry experts, you can make between 3 and 7 percent per unit. For payments made in advance, you receive a further 1% instant rebate. The only way EV franchises and dealers can pay their bills is by selling EVs. Maintenance and spare components will generate the majority of the profit, where you are looking at around 20-40 percent.

It is an accepted fact that many Electric Bike Franchises or dealers frequently receive discounts when buying higher quantities of products from the manufacturer. Electric bike and e-scooter sales do not have a significant profit margin. Most EV dealers' business makes significant profits from after-sales service and spare part replacement when EVs are brought in for maintenance at the dealership's premises. 

The majority of EV manufacturers provide a two to three-year warranty on their electric vehicles, during which the customer is required to schedule routine maintenance. Your warranty is likely to be voided if you skip even one servicing. Therefore, EV riders or consumers will always choose a service for the sake of the warranty from which the franchisee will benefit significantly. It means a higher profit margin and higher revenues.

FAQs on e mobility dealership in India:

A. What is an estimated e bikes price in India?

An electric bike typically costs between Rs. 50,000 and Rs. 2,000,000. In India, there are many high-end two-wheel electric vehicles. Find top electric scooters price in India, there are several options below Rs. 80,000 if you select an electric scooter with a long-range and respectable speed. Find an AMO E Bike Dealership in your town or city if you want the best electric scooter under 80000 that has good performance and reliability.

B. Is there any three wheel electric scooter in India for dealership?

Yes, there are a few brands that offer 3 wheel electric scooter dealerships at a reasonable price. You can find AMO Electric Bikes Jaunty 3W or Xeon Electric bikes or Kinetic Green 3 wheel Scooters. You can apply for their dealership on the respective websites. 3 wheeler electric scootys are ideal for people with disabilities and elderly folks. 

C. Is there any electric bike dealership opportunity in Pune or Bhubaneswar?

Pune and Bhubaneswar are both growing regional cities in India with over a million residents, with Pune having about 7 million consumers. So, there are lot of opportunities in EV bike dealerships in these cities. You can check electric scooter price in Bhubaneswar by visiting the EV dealers. If you are looking for an electric bike showroom in Pune, then use Google Maps to find the nearest showroom. 

D. What are the revenue sources for electric bike showroom?

If you're concerned about your electric scooty dealership's returns, don't be; you have a strong chance of experiencing a year-over-year increase of more than 7-9 percent. The following are the main sources of income for battery scooters or electric scooter dealerships.

e scootya)    Earnings from EV sales 
b)    Sale of spare parts from your franchise
c)    Services and repairs of all kinds, as well as auxiliary repairs, are included in servicing labor that is done at your dealer’s workshop.
d)    Commissions from the insurance companies and payments from the banks that finance the vehicles
e)    OEM manufacturer marketing assistance to reduce marketing costs

E. Does operating an EV dealership take a lot of money and resources?

The magnitude of the investment will be bigger if you select a well-known brand. In addition, there are many credible and emerging EV manufacturers who provide dealership opportunities at reasonable investment levels. The most important thing is that you must be nimble and effective in order to handle expenses such as interest costs, loans, investments, as well as salaries, TA/DA of employees, electricity bill, and operating expenses.

F. What are the pros and cons of an electric scooter dealership?


a.    You get good returns on your investment
b.    You get to know products first-hand
c.    You can start with a low investment
d.    You can operate your dealership with a few models and a few in the inventory


a.    You can’t build your own brand
b.    You have to rely on business efficacy to generate revenues
c.    You have to compete with many brands in the market
d.    Sometimes, profit may be shared with the main distributor 
e.    You have to remain active during business hours to oversee the sales, service and spare parts department 

G. Which EV brands offer prospects for electric bike dealerships?

Nearly all significant EV manufacturers in India are giving dealership opportunities. Both the rural and urban sectors have a healthy demand for EVs, which is why there are more and more e-bike dealerships popping up all over India. The major EV producers who are providing electric bike dealership and franchise opportunities are listed below.

a.    Hero Electric
b.    AMO Electric Bikes
c.    Greaves 
d.    Pure EV
e.    Okinawa
f.    Evolet
g.    Bajaj
h.    Okaya

H. How do I launch a franchise for electric scooty?

Before investing your hard-earned money in an EV franchise or electric scooter/scootys, you must go through the following three steps first. 

a.    Analyze the EV market, discover which EV products the consumers prefer, and assess the level of demand.
b.    Each EV franchise has to identify its target customer. Make a list of the characteristics that your ideal customers have in common. 
c.    Your market analysis for EV dealerships should determine whether there is enough demand for your product. If demand is nominal then growth will be limited. 

I. What kind of employees do I need at electric scooty dealerships?

e bikesTo properly run your EV business, you need a diverse group of people. Without perfect management, income will dry up before you can achieve anything. For the showroom to run smoothly, you will typically require a receptionist, a manager, and a few sales representatives. You must employ service engineers and technicians for the workshop. You also need an office lad, an accountant, a guard and sweepers for cleaning. Finally, to boost sales and lead generation, experts advise hiring a small team of telemarketers.

J. What marketing strategies can be implemented for EV dealerships in India?

In the area where you have the dealership, the brand itself typically handles the marketing. However, there are marketing techniques you may use to increase sales and revenue. To draw attention, you can start by going to social media and posting relevant content. 

To increase the number of followers on your dealership's Facebook or Instagram page, you can create paid ads. Make sure you are attracting viewers by using compelling CTAs and offers. Many people inquire about electric bike online booking on Facebook and you can easily connect with them and pitch your products.

You may also run Youtube Ads to generate high-quality leads. 

Wrap Up:

India recently surpassed Germany to take over as the fourth-largest automobile market, and EVs will play a significant role in this market. India is looking at a sizable EV market for both domestic consumption and export worldwide. According to research, total EV sales across all vehicle segments might reach 100 million units by 2030, which will be 200 times the market's present capacity.

If you are considering opening an EV franchise or an e-scooter dealership now, you have a lot of room to grow your business. As a dealer, you may experience many difficulties and challenges, yet your dealership can eventually generate enormous profits.

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