Basic information

1. How much deposit is to be paid to the company?

Ans.Bajaj Auto does not take any deposit from the dealer.
2. How many days credit is given for vehicle stock by the company?
Ans.Bajaj Auto will send the vehicle only on advance payment. Credit is not
given by the company.
3. What is the dealers order policy? Will the company supply vehicles
without order?
Ans.Company will supply vehicles as per dealers order only.
4. What is the period of dealership agreement with the company?
Ans.Dealership agreement with the company is renewable after every two
years.
5. What will be the area of operations for the dealership?
Ans.Distinct area of operation will be given to the dealership for sales and
service related activities. This is called as command area. Cross selling in
other dealers area is not allowed.

Investment and Returns

6. What is the investment required to start new dealership?
Ans.
a. Other than land and building, dealer will be required to invest
as per the following details :
i. Interior (showroom & workshop equipments) Rs. 25
Lacs to Rs.30 Lacs
ii. Vehicle stock Equivalent to one months sale
iii. Spare parts Rs.15 Lacs to Rs.20 Lacs
b. Working capital from bank or own funds:
i. Indicated monthly sale potential X Rs.50,000. For
example, if the indicated monthly sale potential is 200
vehicles per month, then the working capital required will
be 200 X Rs.50,000 = Rs.100 Lacs + Spare Parts

c. Bank guarantee:
i. Bank guarantee is required from any Nationalized bank as
per company's guidelines.
7. What is the return on investment for bajaj dealership?
Ans.Return on investment for bajaj dealership is estimated in the range of
18% to 24% per annum (Vehicle Sales, Workshop revenue & Spare Parts)

Support from company

8. What support will be given by the company to new dealership?
Ans.
a. Company will provide all layouts, drawings and interior
designs for showroom and workshop which will be as per
bajaj dealership corporate identity norms.
b. Company will provide manpower training
c.
i. Training will be provided to workshop technical staff.
ii. Training to the sales team will be provided on product
features, customer handling & sales process.