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How to Start a Small Tractor Dealership in India: License, Investment, Profit, and Requirements

Table of contents, requirements for starting a small tractor dealership in india, tips to start a small tractor dealership in india, license and registration to start a small tractor dealership in india, steps to get started small tractor dealership in india, is a tractor dealership profitable in india, why become a tractor dealer, what is the profit margin of a tractor dealership, how much investment is required to start a tractor dealership.

Setting up a small tractor dealership in India can be exciting for those passionate about agriculture and farming. This article tells you more about the Requirements, Tips, and Steps to starting a small tractor dealership in India including investment and profitability.

How to Start a Small Tractor Dealership in India

• You need to identify the location of your dealership. This includes finding an appropriate space for displaying and storing tractors and ensuring easy accessibility for customers.
• You need to obtain all necessary licenses and permits required by law. This includes registering your dealership with the Registrar of Companies (ROC), obtaining GST registration, acquiring trade licenses from local authorities, and adhering to state-specific regulations.
• Selecting the right staff is crucial for running a successful tractor dealership. Ensure that they know tractors and have excellent communication skills with customers.
• Securing adequate funding is essential when starting a small tractor dealership in India. You can secure financing through loans or investors depending on your budget requirements.
• The first step is to draft a comprehensive business plan detailing your target market, competition analysis, marketing strategies, and financial projections. This will help you identify potential challenges and prepare accordingly.
• Becoming a tractor dealer requires dedication and hard work. It also involves selecting the right staff members who share your vision and passion for success. With proper planning and execution of business strategies outlined in your business plan, starting a small tractor dealership in India can be an excellent opportunity to enter entrepreneurship while helping farmers meet their needs.
• Next, you must register your dealership with the appropriate authorities, such as the Registrar of Companies or the Ministry of Corporate Affairs. You must also obtain licenses and permits from local corporations or state governments.
• Identifying the right location is crucial for setting up your dealership. It should preferably be located near agricultural areas where farmers are more likely to purchase tractors.
• Once you have selected a suitable location, hiring experienced staff members who know about the different types of tractors available in India is time. They should also be able to guide customers regarding financing options and after-sales services. Starting a small tractor dealership requires careful planning, research, and investment, but it can prove profitable in the long run if done correctly.
• Firstly, you need to register your business as a company or proprietorship. Then, obtain a trade license from the local municipal corporation, followed by VAT registration with the state government.
• Before starting a small tractor dealership in India, obtaining the necessary licenses and registrations is crucial. The first step is registering your business as a legal entity with the Registrar of Companies (ROC).
• Next, you must apply for a local sales tax department VAT registration certificate. This certificate is mandatory for any dealer who sells goods worth more than Rs. 5 lahks per year.
• Additionally, acquiring a trade license from the local municipality is important as it ensures that you operate legally within your jurisdiction. Don’t forget about obtaining any specific permissions or certifications required by manufacturers whose tractors you plan on selling. These may include dealership agreements and certification programs.

In case you missed it: Top 50 Agriculture Business Ideas on Your Budget

• Starting a small tractor dealership in India can be exciting and profitable. Firstly, drafting a dealership agreement is crucial as it outlines the terms and conditions between you and the manufacturer or supplier of the tractors. You must clearly understand what they expect from you as their dealer.
• Registering your dealership with the government is necessary for legal compliance. You will need to obtain a GST number, PAN card, and trade license from local authorities, among other licenses required by law.
• Identifying the right location for your dealership is vital for its success – choose an area with high tractor demand but doesn’t already have many dealerships.
• Selecting skilled staff members who possess knowledge of different types of tractors available in India will help boost sales significantly.
• Finally, crafting a well-detailed tractor dealership business plan that includes everything from financial projections to marketing strategies should not be overlooked. A solid plan acts like a roadmap that helps guide decision-making processes while providing direction on growing your business over time.

The tractor dealership business in India can be profitable if executed properly. In addition to selling tractors, there’s also potential for profits through servicing and repairing them. Many farmers rely heavily on their tractors and require frequent maintenance, making the servicing aspect of the business a lucrative opportunity. Selling spare parts is another avenue for revenue since tractors require regular maintenance and repairs. 

• Becoming a tractor dealer can be a lucrative and fulfilling career path. For one, the agricultural industry in India is vast and growing, with an increasing demand for tractors to aid in farming activities. Being a tractor dealer provides opportunities for business growth and expansion.
• In addition to financial rewards, becoming a tractor dealer also allows you to build relationships with customers within the agricultural community. This means you work closely with farmers and help them find the right equipment.
• Being a tractor dealer also comes with perks like access to exclusive training programs from manufacturers and networking opportunities at trade shows or industry events. Moreover, as technology advances in the agriculture sector, new products are always emerging, which keeps things interesting and profitable.

This industry has high-profit potential due to the increasing demand for tractors in various sectors, including agriculture and construction. With dealerships of tractors, one can make a profit of 15% -18% on MRP, which can further increase through sales of spare parts and farming implements. Profit potential depends on various factors, such as market demand and competition within your chosen area; therefore, it’s important to conduct extensive research before investing.

The capital investment can range from Rs. 50 lakhs to up to Rs. 1 crore depending on land cost, rental fees for showroom space, and staff salaries.

In case you missed it: Government Subsidy for Electric Scooters in India: How to Apply for It?

Starting a small tractor dealership in India can be an exciting and profitable business venture for those interested in the agricultural industry. With a growing demand for tractors in India, setting up a dealership presents an opportunity to tap into this market and provide farmers with the necessary quality machines.

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Growing potential of Tractor Dealership Business in India

The tractor supplier industry is growing into a profitable opportunity for business owners in India’s lush agricultural terrain. Tractor Dealerships have an increasingly important role as the demand for mechanized agricultural equipment continues to rise due to the need for higher productivity and efficiency in agriculture. Indo Farm is a popular Indian tractor manufacturing company that aims at empowering the farmers of the nation and enhancing the agrobusiness industry of India.

In this blog, we examine the opportunities for the tractor dealership industry in India, as well as the forces behind its growth and the challenges it poses for would-be company owners.

Rising Demand for India’s Best Tractors: To increase production and profitability, farmers in India are adopting automated farming techniques, which is transforming the country’s agricultural industry. Because of this, there is an increasing need for premium tractors that operate better even under the worst farming circumstances in India. To satisfy this need, Indo Farm tractor dealership are essential in giving farmers access to the best tractors in India, which are outfitted with cutting-edge features and technology to improve agricultural operations.

Partnerships with Reputable Tractor Suppliers: Partnerships with reliable tractor suppliers that provide a wide selection of models specifically customized to satisfy the varied demands of Indian farmers are essential to the success of a tractor dealership. Through partnerships with reputable tractor manufacturers like Indo Farm, dealerships can guarantee access to premium tractors renowned for their dependability, robustness, and efficiency. Through these collaborations, dealerships provide farmers with a wide range of tractors outfitted with cutting-edge features, guaranteeing they will discover the ideal vehicle to meet their unique needs.

Expanding Market Reach Across India: Since India’s economy is based mostly on agriculture, there is a sizable market for tractor dealerships throughout the nation. Farmers all throughout India require dependable automated farming equipment, whether they are farming on the plains of Punjab or the rice terraces of West Bengal. To capitalize on the rising demand for tractors and agricultural equipment, tractor dealerships may increase the size of their market by setting up shop in rural regions and agricultural centers.

Diversification of Product Offerings: Successful dealerships can expand the range of products they sell in addition to tractors to meet the various demands of farmers. This might involve service facilities, replacement parts, attachments, and agricultural tools. Dealerships may become one-stop shops for farmers wishing to purchase mechanized agricultural equipment by providing a wide choice of goods and services, which will increase client happiness and loyalty.

To conclude, the possibilities of tractor dealerships as a business are yet to be explored by most of our nation. As the country continues its path of agricultural modernization, the role of tractor dealerships will only become increasingly vital in meeting the evolving needs of Indian farmers. Indo Farm believes in the power of dreams and the vigor of honest sweat. That is why we have created a company that not only helps farmers around the world fulfill their dreams but also gives them new dreams.

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Getting a tractor dealership In India - Step by Step process

Published Feb 25, 2023

The increasing tractor demand, the gross yearly income of farmers, and GoI plans and subsidies regarding the matter have coined opportunities for gaining rights to get started selling tractors.

A true business also does market research before it even starts selling products or services. Also, a business plan is necessary for a calculative approach to the matter.

Starting a tractor dealership starts with getting approval from the tractor manufacturer. You have to get the dealership agreement approved by the tractor brand.

When it comes to registering your business, the wisest of all steps is taking the tax benefits of the type of legal entity into consideration. The registration of a business is a must to sell tractors.

Licences are the next step in getting the tractor dealership. Selling commercial vehicles requires a licence in the country, and the charges may vary across states.

The right choice of staff makes your business a successful one. Be careful and judgemental while selecting one.

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Table of Content

Importance of dealership businesses in india, benefits and challenges of becoming a dealer, best dealership business ideas in india, how can a business loan help to become a dealer, how to apply for business loans, to conclude, frequently asked questions about dealership business.

A dealership business in India can be a rewarding venture for aspiring entrepreneurs. With a diverse and growing market, dealerships play a crucial role in connecting manufacturers with customers across various industries. This blog provides a step-by-step guide on how to become a dealer and importance of a dealership business in India.

The following are the dealership businesses in India:

• Employment Generation

Dealership businesses play a significant role in creating employment opportunities across the country. They provide jobs not only in sales but also in service centres, logistics, administration, and other support functions.

• Distribution and Market Reach

Dealerships act as a crucial link between manufacturers and consumers, facilitating the distribution of products to various regions. They ensure products are readily available, provide localised support, and enhance the market reach of manufacturers.

• Product and Brand Awareness

Dealerships contribute to building product and brand awareness among consumers. Through marketing and promotional activities, they showcase product features, and benefits, and educate customers about the brand, creating a positive impression.

• After-Sales Service and Support

Dealerships play a vital role in providing after-sales service, warranty support, and maintenance for products. They ensure customer satisfaction, build trust, and enhance the overall ownership experience.

• Understanding the Dealership Business Model

To embark on a successful dealership business, it is essential to grasp the intricacies of the dealership business model. This model typically involves partnering with a manufacturer or brand to sell their products directly to customers. As a dealer, you act as a link between the manufacturer and the end consumer, responsible for marketing, sales, and service operations.

• Researching and Selecting the Right Industry

Before diving into the dealership business, thorough research is vital to identify the right industry or sector. Assessing market trends, customer preferences, and the competitive landscape can help you make informed decisions. Consider factors such as demand, growth potential, profitability, and the reputation of the brand you wish to associate with. Conducting market surveys, analysing market reports, and consulting industry experts can aid in selecting the right industry for your dealership business.

• Understanding Legal and Financial Aspects

Establishing a dealership business involves complying with various legal and financial aspects. Firstly, you need to register your business entity, such as a sole proprietorship, partnership, or private limited company, with the appropriate authorities. It is crucial to obtain the necessary licences and permits, including the dealership agreement with the manufacturer. It is advisable to create a detailed business plan and explore financing options such as Business Loan , which can provide the necessary funds to kick-start your dealership business.

ALSO READ :- How to Use Your First Business Loan Effectively?

The pros of becoming a dealer are as follows:

• Profit Potential

Dealers can earn profits by purchasing goods from manufacturers and supplying them to retailers, capitalising on the low investment requirements and potential product demand.

• Brand Association

Exclusive dealership of preferred brands allows for established brand associations, potentially offering additional margins.

• Business Operation Flexibility

Dealers enjoy flexibility as they are not involved in the production and manufacturing processes. Purchasing finished products provides convenience in business operations. The cons of becoming a dealer are as follows:

• Initial Investment

While the initial investment for a dealership is not substantial, funds are still required for hiring staff, setting up an office, and paying manufacturers before receiving payments from retailers or corporate customers.

• Market Competition 

Increased competition in the market, fueled by the low investment and high-profit margin nature of dealerships, requires maintaining competitive quotes to attract and retain business.

• Inventory Management

Dealers need to balance demand and supply, staying in touch with retailers to monitor market trends and inform manufacturers about upcoming demand. This involves effective inventory management.

Here is a list of the best dealership business ideas in India:

• Computer hardware and accessories
• Automobile 
• Organic Food
• Arts and crafts
• Sports equipment
• Furniture and interior decor items
• Plastic items

To become a dealer in India, you require an initial investment for various expenses like staffing, marketing, inventory management, office setup, market research, and addressing working capital needs.  A Business Loan offers a solution by covering these expenses without usage restrictions, allowing you to focus on becoming a dealer without financial concerns. Poonawalla Fincorp provides you with a Business Loan at competitive interest rates , offering loan amounts up to Rs. 50 Lakh and flexible repayment tenures extending up to 48 months.

Follow the steps to apply for a Business Loan with Poonawalla Fincorp to start your dealership business

• Step 1: Click on ‘Apply Now’ and open the application form.
• Step 2: Provide your contact information and other required details in the form.
• Step 3: Upload the necessary documents and click on the ‘Submit’ button.

A dealership business in India requires careful planning, industry knowledge, and financial support. Poonawalla Fincorp, a trusted financial institution, offers business loans tailored to meet the specific requirements of entrepreneurs like you. Whether you need capital for infrastructure, inventory, or working capital , Poonawalla Fincorp can provide the necessary financial assistance to fuel the growth of your dealership business.

1.    Which dealership is most profitable in India? The profitability of a dealership in India can vary depending on several factors, such as the industry, location, brand, and market demand. Generally, automobile dealerships tend to be highly profitable due to the consistent demand for vehicles.

2.    Which distributorship is best in India? Determining the best distributorship in India depends on your interests, market dynamics, and personal goals. There are various sectors with promising distributorship opportunities, such as FMCG (Fast-Moving Consumer Goods), pharmaceuticals, electronics, and food and beverages.

3.    Which is better a franchise or a dealership? The choice between a franchise and a dealership depends on several factors, including the industry, investment capabilities, and personal preferences.

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Business Loan disbursal is at the sole discretion of Poonawalla Fincorp. *Terms and Conditions apply

Poonawalla Fincorp Team

Our team of expert writers and editors are passionate about providing authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

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Tata Capital > Blog > Loan for Business > How To Start A Dealership Business In India & How To Become A Dealer?

How to start a dealership business in india & how to become a dealer.

The plethora of government initiatives in the last few years has seen dealerships growing in leaps and bounds in India. Usually considered a challenging space to make a mark for new entrants, dealerships today are among the easiest initiatives for individuals and groups alike. Are you interested in starting a dealership business in India? If so, this blog is for you! 

In this article, we'll outline the steps necessary to start and run a dealership business in India and provide insights on how to become a dealer. So whether you're considering expanding your business into unfamiliar territory or are already planning to open up a dealership, read on to learn more!

An introduction to the dealership business

The items you see at your local market or get delivered online usually reach you via suppliers and distributors. Other than some D2C brands, India follows a hierarchy system for most businesses which involves multiple points of contact between a manufacturer and an end customer. 

These products pass the supply chain, where the manufacturer sends the products to a supplier, also known as a dealer. These dealers pass on the goods received to the distributors, responsible for sending them to the retailers and ultimately to the consumers. 

Anyone can open a dealership and sell any product they are authorized to deal in. 

Steps to start a dealership business

If you're thinking of starting a dealership business in India, here are some essential steps that you need to follow -

Make a business strategy for your dealership

It is crucial to develop a business strategy for your dealership if you want it to be successful. First, it is necessary to identify the goals to achieve. Once that's done, work out a plan of action based on your research and understanding of the local market conditions. Many types of businesses and products are available in today's marketplace - so make sure that the type of dealership you choose sticks out from the rest! 

And don't forget about profitability! A well-run dealership shouldn't just focus on making money; it should also enjoy its sense of purpose and contribute positively to society.

Dealership Agreement

When starting a dealership, it is essential to have an agreement in place between you and the business owner. This document sets out the terms and conditions under which you will operate your business. 

Some of the most important things to include are: - 

• The dealership name and location 
• The products and services offered
• The compensation scheme for sales personnel
• Dealer perks such as training facilities or discount schemes 

Ensure all these details are spelled out before signing on the dotted line! Once everything is agreed upon, create a basic business plan outlining how you envisage running your dealership. 

Ensure all licenses and permits required by law are in place before moving forward. Finally, initiate the recruitment process and get started!

Determine your supplier

Before getting started, it is vital to have a clear idea of what you want and where your dealership is headed. You also need the right team of suppliers in place, all of whom should be well-versed with the latest laws and regulations related to the industry.

A pro tip - connect with local suppliers to reduce delivery issues and maintain the margins. 

Build the business

When starting a dealership business, it is important to have a well-thought-out plan. It will include developing a business plan and preparing financial estimates. Once you have those pieces of the puzzle in place, it's time to advertise your dealership and build relationships with potential customers. 

The first step might be identifying your target market - this will help you figure out areas that deserve more attention and focus marketing efforts towards them.

Do not forget to track results and measure the success of your campaigns so that you can continue improving upon what works best for your dealership.

Contact a Franchisor

If it is too difficult for you to start a business, you can take the franchise route, where you opt to manage a franchise of an existing, reputable brand.

There are a few things you need to do before approaching a franchisor:

• Ensure your dealership is up-to-date and you understand the latest trends and technology.
• Have an effective business plan.
• Be aware of the various regulations that apply. 

After the groundwork has been done, it's time to find a reputable and qualified franchisee who will help turn your dream into reality. 

Do some research beforehand so you know which franchises are best suited for your business profile and location. Then, once you've found someone good, approach them!

Create a Powerful Network

Trade shows and events are a great way to connect with other dealers in your industry and get leads for your business. By networking with others, you can find out what new products or services are available on the market and potential partners or distributors. 

Use social media platforms, like LinkedIn and Facebook, to stay connected with other dealers in your industry. It is vital to track down older dealership websites archived, so you don't miss any opportunities. For this, you can connect with experienced professionals or look for what your competition is up to.

Establish a Purchase Policy

It is important to have a clear purchase policy in place, so customers know what they are getting and that the dealer is confident in selling the product. It should be unambiguous and easy to follow and should have clear payment terms, rejection terms, and more.

Dealers must also ensure their inventory matches customer demand, avoiding any disputes or misunderstandings down the line. A well-defined purchase policy will help dealers establish trust with potential buyers and create positive relationships. It would result in increased sales for both parties!

Keep an eye on how your company is doing

It is important to keep an eye on the health of your business. By taking the time to track various indicators, you can identify any problems and take corrective measures before they become big issues. These indicators include operating inventory turnover rate, COGS (cost of goods sold, payroll churn, and more.

How to Become a Dealer in India?

Starting and running a dealership business in India can be a lucrative and challenging venture. However, it's possible if you're determined and have the right skills and resources. 

The first step is to be persistent and work hard at building your business. You'll need to have a saleable product, excellent customer service, and an efficient marketing strategy. 

Make sure you have a solid business plan and are well organized, as dealerships in India are complex and require a lot of up-front work. 

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In this blog, we have covered everything you need to know about starting and running a dealership business in India. From the basics of starting a business to the intricacies of becoming a dealer, we have covered it all. 

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Home » MSME » Dealership business ideas in India

Dealership business ideas in India

by Priyanka Babu | MSME

Dealership businesses are lucrative business options that can be started anywhere. Manufacturers sign a deal with a retail business allowing them to become authorised dealers of the former’s products. Small dealership businesses have a large scope if entrepreneurs can find the right niche to invest in.

Table of Contents

Solar panel, organic food, construction material, ayurvedic medicine, agriculture equipment, electric vehicle.

Dealership businesses are business establishments that are authorised to sell products produced by a manufacturer. For example, you can spot numerous automobile dealerships across the country. Prerana Motors, Popular Autoworks, etc., are famous car dealerships in India. There are many successful dealership business ideas that new entrepreneurs can explore.

Buying into a dealership is a great way to step into the business world. Not only do you have the advantage of an established product or service line, but you also get help setting up your dealership and marketing your new business.

6 best dealership business ideas

There are many businesses offering dealerships in India. Have a look at the profitable business ideas that have potential in the current market conditions in India:

The number of business and homeowners that are investing in solar panels has drastically gone up. Indian solar energy market is growing thanks to the declining cost of solar power technology, solar systems becoming more flexible. Being a greener way to make electricity, it has caused environmental enthusiasts all over the world to invest in solar panels.

Identifying a suitable location where solar panels are fast becoming a homeowner’s choice for electricity generation and then starting a solar panel dealership is a business idea with great potential. Providing solar panels and installation services at reasonable prices can not only bring in profits but also help more people adopt solar panels for power generation.

Also read: Best business ideas under ₹10 lakh investment: Know business list

Organic food is becoming an important commodity that is in demand in India and all over the globe. Since more people are joining the bandwagon of healthy living organic farming products are enjoying much limelight.

According to IMARC report, Indian organic food market is expected to exhibit a CAGR of 25.25% during 2022-2027. Exports of organic products from India in 2021-22 was estimated at ₹5249.32 Crore. (Source: PIB)

Organic food dealerships in India especially in the urban regions is a profitable business idea. Stocking organic products from multiple brands after researching the demand for different products according to the location of your retail business.

A construction material dealership is one of the best dealership business ideas in India. Buildings both residential and commercial are being erected across numerous parts of India. Establishing a construction material dealership that is close to developing regions is a chance for increased sales.

Many construction companies are also looking at making building construction more sustainable and environment friendly. Many new innovations are coming to the construction industry like fire resistant steel structures, sustainable buildings, etc. If you maintain a supply of these as a part of the dealership business, it might help bring in more customers.

Also read: 12 Creative MSME business ideas with low investment

People are veering towards Ayurveda for healthcare and other treatments. Many people find ayurvedic medicines more effective than common medicines. Also, these medicines are free of side effects. Ayurvedic medicines are therefore showcasing more demand in the market.

Finding a few original ayurvedic medicine brands and starting a dealership business is a great small dealership business idea. Ayurvedic skincare products are also in demand especially among women as they are all natural products absent of side effects unlike the common chemical infused skincare treatments.

Agriculture is a primary occupation for numerous people in India especially in the rural parts of the country. Many young entrepreneurs are also getting into farming including dairy farming and poultry business.

All agriculture plantations and farms employ equipment to mechanise their production. Many farmers are increasingly using equipment to increase productivity from their crops and maintain a competitive edge.

Setting up agriculture equipment shops near agricultural areas and rural regions is a potentially lucrative business idea. You can also add an equipment repair function to the list of services to bring in more customers and add revenue.

Many citizens have adopted electric cars and electric scooters over fuel powered vehicles. Indian cities are also adopting electric buses for public transport in an attempt to make India green. Electric vehicles dealerships are quickly starting to appear on the map as the number of Indian manufacturers for electric vehicles are spiking.

Electric vehicles are a profitable business option if you find the right location to set up your enterprise. If you have a love for automobiles and can understand the technology behind them along with the business aspects of owning an automobile business, then electric vehicle dealership is a good business idea.

Dealership businesses require a significant capital investment and to become authorised dealers, you will have to sign a contract with the manufacturer. Explore each option based on your interest, budget at hand to kickstart the business and the scope of a business venture to make money.

Also read: 5 Manufacturing business ideas in India

Priyanka is a seasoned content marketing professional with more than 6 years of experience crafting various forms of business and technology sector content. Her insightful writing tackles critical issues faced by small-scale manufacturing businesses. Priyanka’s clear and concise communication empowers businesses to make informed decisions and thrive in today’s dynamic business environment.

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Find 1.3+ Lac govt. tenders! Submit details & get a call back for free advice.

Tractor Industry in India Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The India Agricultural Tractor Market Report is Segmented by Engine Power (Less Than 30 HP, 31-50 HP, 51-80 HP, and Above 80 HP), Drive Type (Two-Wheel Drive and Four-Wheel Drive), and Application (Row Crop Tractors, Orchard Tractors, and Other Applications). The Report Offers Market Estimation and Forecast in Value (USD) for the Abovementioned Segments.

India Agricultural Tractor Machinery Market Size

Need a report that reflects how COVID-19 has impacted this market and its growth?

India Agricultural Tractor Machinery Market Analysis

The India Agricultural Tractor Market size is estimated at USD 2.37 billion in 2024, and is expected to reach USD 3.13 billion by 2029, growing at a CAGR of 5.80% during the forecast period (2024-2029).

• The demand for agricultural machinery, including tractors, increased due to higher Kharif sowing, good cash flows to farmers, a timely and normal monsoon in the country across June and July 2022, continued higher rural spending by the government, and exemption from lockdown restrictions.
• Government initiatives toward rural development, farm mechanization, and various factors, such as high rural wages and scarcity of farm labor, will likely increase the tractor volume over the long term. In terms of units, India is one of the largest tractor markets globally, selling 600,000 to 700,000 tractors per annum on average between 2018-2021.
• Two-wheel-drive tractors are more popular than four-wheel-drive tractors in the Indian market. The agriculture tractor market is dominated by aboriginal Indian OEMs, namely Mahindra & Mahindra Limited, TAFE, International Tractors Ltd (Sonalika), and Escorts Limited. Key international tractor manufacturers like Deere & Company and CNH penetrated the market and established a decent market presence.
• India remains a highly lucrative tractor market because of the decreasing availability of farm labor and the rise of innovative business models, such as custom hiring solutions for tractors. In India, under the mechanization component of the macro-management scheme of agriculture by the Indian government, there is a subsidy for promoting agricultural mechanization, including 25% of the cost limited to INR 30,000 for buying tractors of up to 35 PTO HP. Thus, with the rising government support for enhancing farm mechanizations and expansion in crop production, the sale of agricultural tractors is anticipated to rise in the upcoming years.

India Agricultural Tractor Machinery Market Trends

Mechanization trend in agriculture sector.

• In recent years, farm mechanization practices have come a long way. Issues concerning farm productivity are tackled mainly through the extensive use of tractors and other farm equipment. The employment of mechanized power in the field has pioneered impressive changes in the agriculture sector. 
• Providing subsidies involves all stakeholders, including the Indian government, state governments, state agro-industries corporations, machinery manufacturers associations, Farm Machinery Testing and Training Institutes (FMTTIs), manufacturers, importers, dealers, and farmers. Under direct benefit transfer in agricultural mechanization, the subsidy in the market is shared by both center and state governments.
• Easy credit availability to farmers is made possible through many financial institutions, and favorable government policies and subsidy programs lead to these. Various loan schemes, easy breakdown of installments according to crop cycles, and low-interest rate plans generate funding for mechanization. As per India's National Bank for Agriculture and Rural Development (NABARD) norms, any farmer with 8 acres of land can take a tractor loan to be paid over nine years, with 12.5% interest over the principal amount. 
• Various concessions from the Indian government, like exemption of excise duty for tractors less than 1800 cc of capacity, have helped small farmers purchase the machine. To offer loans to a higher number of small and marginal farmers, the government has reduced the minimum land holding from 10 acres to 4 acres over the years, and the credit period has been increased from 7 to 9 years.
• In addition to the schemes mentioned above, the government provides subsidies for purchasing tractors below 18 HP under central sector extension programs. This subsidy is offered to farmers individually or in groups, with irrigated land between 2.4 and 3.2 ha. The farm power availability has increased to 2.76 kW/ha in 2021, and the government has set a target to achieve 4 kW/ha by 2030. This, in turn, is anticipated to boost agricultural machinery sales in India.
• Thus, with substantial support from the government, the adoption of tractors for agricultural practices has increased over the years. Hence, the farm mechanization goals of the Indian government are acting as the prime driver and are expected to boost the market growth during the forecast period.

Increasing Trend of Custom Hiring of Tractors

• Custom hiring services for tractors are delivered broadly through four means: government agencies, local entrepreneurs, large farmers, and organized companies. The Agriculture Engineering Department in many Indian districts has introduced this concept of ‘custom hiring centers' to popularize and achieve the objective of farm mechanization in all the panchayat unions in the districts.
• Some of the states, like Karnataka, Maharashtra, and Rajasthan, have already developed custom hiring centers in order to facilitate the farmers. These states are rapidly expanding the number of custom hiring centers. For instance, in January 2022, the Agriculture Minister of the State of Rajasthan announced to set up of 1,000 more custom hiring centers in the state.
• Similarly, in March 2022, the state government of Madhya Pradesh announced the opening of 3,000 new custom hiring centers in the state. Under this scheme, 40% credit linked to back-ended subsidies up to a maximum of INR 10 lakh is given to farmers for setting up custom hiring centers in Madhya Pradesh.
• Custom hiring companies also provide skilled operators, in which case farmers can avoid incurring extra costs in their operations. Most of the large farmers need help in justifying their ownership for the purchase of machines, and therefore, renting out tractors has become a viable trend for machinery companies.
• Thus, the increasing popularization of the use of tractors, coupled with government support to provide tractors on a hiring basis, is anticipated to drive the growth of the market during the forecast period.

India Agricultural Tractor Machinery Industry Overview

The agricultural tractor market in India is consolidated and dominated by large global and domestic manufacturers, and farmers prefer trusted brands for quality assurance and better after-sales services. Mahindra & Mahindra Ltd is the leading player occupying the highest share in the Indian agricultural tractors market, followed by Tractor and Farm Equipment Ltd (TAFE), International Tractor Ltd, Escorts Limited, and John Deere India Private Limited.​ These major players are investing in new products and improvisation of products, expansions, and acquisitions for business expansions. Another significant investment area is the focus on R&D to launch new products at lower prices.

India Agricultural Tractor Machinery Market Leaders

Mahindra & Mahindra Limited

John Deere India Private Limited

TAFE Limited

Escorts Group

International Tractors Ltd (Sonalika)

*Disclaimer: Major Players sorted in no particular order

India Agricultural Tractor Machinery Market News

• April 2023: Mahindra's farm equipment division partnered with the State Bank of India (SBI) to offer convenient loan options for tractors and farm machinery products.
• March 2023: TAFE introduced the groundbreaking MAGNATRAK series at the MAGNA Sugarcane Carnival in Belgaum, Karnataka, setting new industry standards. The Massey Ferguson 8055 MAGNATRAK, the inaugural model in the 50 hp range, leads this exceptional series known for its world-class design, advanced technology, unmatched power, outstanding performance, and cost-effective utility, particularly suitable for heavy haulage operations, notably in sugarcane farming.
• December 2021: Sonalika Tractors unveiled the new Tiger DI 4WD tractor line in India, with the Tiger DI 65 priced at INR 11 lakh (USD 14300) and the Tiger DI 75 at INR 11.2 lakh (USD 13658).

India Agricultural Tractor Market Report - Table of Contents

1. INTRODUCTION

1.1 Study Assumptions and Market Definition

1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS

4.1 Market Drivers

4.1.1 Increasing Mechanization Trend in Agriculture Sector

4.1.2 Increasing Trend of Custom Hiring of Tractors

4.1.3 Government Support to Enhance Farm Mechanization

4.2 Market Restraints

4.2.1 Lack of Awareness and Skilled Manpower

4.2.2 Poor Economic Condition of the Farmers

4.3 Porter's Five Forces Analysis

4.3.1 Bargaining Power of Buyers

4.3.2 Bargaining Power of Suppliers

4.3.3 Threat of New Entrants

4.3.4 Threat of Substitute Products

4.3.5 Intensity of Competitive Rivalry

5. MARKET SEGMENTATION

5.1 Engine Power

5.1.1 Less than 30 HP

5.1.2 31-50 HP

5.1.3 51-80 HP

5.1.4 Above 80 HP

5.2 Drive Type

5.2.1 Two-wheel Drive

5.2.2 Four-wheel Drive

5.3 Application

5.3.1 Row Crop Tractors

5.3.2 Orchard Tractors

5.3.3 Other Applications

6. COMPETITIVE LANDSCAPE

6.1 Most Adopted Strategies

6.2 Market Share Analysis

6.3 Company Profiles

6.3.1 Mahindra & Mahindra Limited

6.3.2 John Deere India Private Limited

6.3.3 CNH Industrial (India) Pvt. Ltd

6.3.4 TAFE Ltd

6.3.5 International Tractors Limited (Sonalika)

6.3.6 Escorts Group

6.3.7 Kubota Corporation

6.3.8 Force Motors Limited

6.3.9 Preet Tractors (P) Limited

6.3.10 Standard Corporation India Limited

• *List Not Exhaustive

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

India Agricultural Tractor Machinery Industry Segmentation

A tractor is an industrial vehicle with one or two small wheels in front and two large wheels at the back for agricultural and other functions. It is used to move the attached implement that plows the field or performs other activities. For this report, tractors used in agricultural operations have been considered. The report does not cover other agricultural machinery and attachments to tractors. Tractors used for industrial and construction purposes are also excluded from the study.

The India agricultural tractor market is segmented by engine power (less than 30 HP, 31-50 HP, 51-80 HP, and above 80 HP), drive type (two-wheel drive and four-wheel drive), and application (row crop tractors, orchard tractors, and other applications).

The report offers market estimation and forecast in value (USD) for the abovementioned segments.

India Agricultural Tractor Market Research Faqs

How big is the india agricultural tractor market.

The India Agricultural Tractor Market size is expected to reach USD 2.37 billion in 2024 and grow at a CAGR of 5.80% to reach USD 3.13 billion by 2029.

What is the current India Agricultural Tractor Market size?

In 2024, the India Agricultural Tractor Market size is expected to reach USD 2.37 billion.

Who are the key players in India Agricultural Tractor Market?

Mahindra & Mahindra Limited, John Deere India Private Limited, TAFE Limited, Escorts Group and International Tractors Ltd (Sonalika) are the major companies operating in the India Agricultural Tractor Market.

What years does this India Agricultural Tractor Market cover, and what was the market size in 2023?

In 2023, the India Agricultural Tractor Market size was estimated at USD 2.23 billion. The report covers the India Agricultural Tractor Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the India Agricultural Tractor Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

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India Agricultural Tractor Industry Report

Statistics for the 2024 India Agricultural Tractor Machinery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. India Agricultural Tractor Machinery analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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• India Agricultural Tractor Market Size
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• Business Ideas
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Best Dealership Business Ideas in India

• by SBH Team
• September 23, 2023

In a growing economy like India, starting a business is definitely a good idea. For people who do not have experience, starting with a dealership business is a better option.

In a dealership business, a businessperson is granted the right to sell a company’s products or services in a particular area.

Since that company’s business model has already been tested and its name is already established in the market, it would be easy to start this business for beginners.

Here are some of the best dealership business ideas that you can start in India:

1. Construction & Building Materials dealership

In developing countries like India, there is always a high demand for construction and building materials.

The construction industry is booming mainly due to the expanding urban housing demand and government spending on infrastructure such as roads, bridges, etc.

Some of the dealership opportunities, 

• Cement Dealership Business
• Paints Dealership Business
• Tiles Dealership Business
• Bathroom Accessories Dealership
• Building decoration products dealership

2. Eco-friendly dealership Ideas

The eco-friendly or green energy industry in India is growing very rapidly. Increasing awareness among people and government subsidy schemes are the main reasons for this growth.

Since this industry is in the early growth stage in India, now is the right time to enter this industry by taking a dealership like Tata Power Solar Panel, Tata charging station dealership, etc. Some of the dealership business ideas are.

• Solar Panel dealership
• Electric vehicle charging station franchise
• Solar products dealership

3. Pharma & Healthcare products dealership

Pharma and healthcare are some of the most profitable businesses in India and across the world.

This is an evergreen industry, and in India, the demand is increasing year by year due to the growing population. You can start a dealership business in any of the following fields:

• Pharmacy franchise
• Ayurvedic and herbal products dealership
• Homeopathic products dealership

4. Security and Protection Equipments dealership

Security and protection equipment are very important to keep people and society safe. Since many people are not aware of this industry, there is relatively little competition in this industry.

So, after getting some knowledge and understanding the demand for this equipment in your area, you can start this dealership business.

• Firefighting and protection equipment dealership
• Surveillance equipment dealership

5. Fashion and Apparel Dealership

In India, due to the increase in disposable income, fashion and apparel products are always in demand. There is even demand for these products in tier 3 cities.

One can start your business by taking a franchise of any fashion or apparel brand, such as Raymond, Jockey, Reebok, or Zara.

• Baby & Kids wear franchise
• Men & Women Wear Franchise
• Ethnic Wear Franchise
• Footwear Franchise
• Fashion Accessories dealership

Also Read: . Best Business Ideas Under 5 Lakhs in India

6. Agriculture products dealership

This is an evergreen industry. You have a variety of business opportunities to start with.

Nowadays, there is a huge demand for organic foods in urban areas, and there is always a demand for products like fertilizers in rural areas.

Depending on the demand in your location, you can start a dealership in any of these fields.

• Organic food dealership
• Agro products and commodities
• Fertiliser dealership

7. Food & Beverage Dealership

The expanding urbanization, the changing eating patterns of the population, and rising household spending rates make the food and beverage industry always in demand.

If one has a passion for the food industry, one can easily start a franchise of any of the following opportunities.

• Fast-food chain franchise
• Bakery & Confectionery  franchise
• Dairy products franchise
• Packed food products franchise
• Tea & Coffee products franchise

8. Automobile industry dealership

We all know that there is always demand for two-wheelers and four-wheelers in India. The increasing population and the expanding middle class are the main reasons for this growth.

You can start a dealership from any of the below opportunities.

• Four & Two Wheeler vehicle dealership
• Electrical Vehicle Dealership
• Tyre Dealership
• Engine Oil & lubricants dealership
• Automobile accessories dealership

9. Home Supplies dealership

Home supplies are always in demand. Some dealerships, such as home furniture, may require significant investments.

However, there are other opportunities that can be started with less investment. One can also start this business in suburban areas.

• Home furniture dealership
• Kitchen Appliances & Coock ware dealership
• Home furnishing products dealership
• Electric fittings & accessories dealership

10. Industrial Supplies dealership

If one chooses the right location for this dealership, then it is one of the safest businesses to start. The following dealerships can be started in both suburban and urban areas

• Hardware & Tools dealership
• Fibreglass products dealership
• Packaging material dealership

These are some of the best dealership business ideas that you can start in India.

We hope this article will help you launch a dealership business very soon. If you like this article kindly share it with our friends.

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Top 10 Tractor Companies in India – Popular Tractor Brands 2024

Tractors are farmers’ companions and the most valuable asset in daily life. Also, using this farming tool has emerged as one of the most dependable ways to facilitate and complete various agricultural tasks. The industry is expected to grow soon due to the ever-increasing needs of farmers. Before selecting the best tractor company in India, farmers must be aware of all available options. So without further ado, let’s take a quick look at Top 10 Tractor Companies!

Table of Contents

List of 10 Best Tractor Manufacture Companies in India – Top 10 Tractor Brand 2024

Here is a list of India’s top 10 tractor companies that you should consider before buying-

1. Mahindra Tractor

The Mahindra tractor is one of the top tractor firms in the country and is among the top 10 tractor-manufacturing companies globally. Moreover, Mahindra tractor is one of the best tractor brands in India that sells the most worldwide and offers no. 1 tractor in India at a cost that is affordable to everyone.

Mahindra tractors’ USP-

• They offer their customers the best service possible-
• Mahindra tractor price 2024 is reasonable and made with high-quality materials.
• To meet the demand for farmers’ products can be modified
• They have a large selection of farm machinery.
• A dependable engine that uses less fuel

HP Range- Tractors come from 15 to 75 horsepower versions. Also, it includes Mahindra 4WD tractor types.

Price Range: The price of a Mahindra 4WD tractor ranges from Rs 3.05 lakhs to Rs 12.90 lakhs.

Popular Models- Mahindra’s most well-known tractor models include the Mahindra JIVO 225 DI , Mahindra Novo 755 DI , and Mahindra JIVO 245 DI .

2. Swaraj Tractor

Swaraj is one of India’s no 1 tractor companies which has a long history in the Indian market and thoroughly understands farmer needs. Moreover, this famous tractor brand consistently prioritizes the interests and requirements of farmers. Also, the main factor influencing Swaraj’s enormous success on a global scale is the demand for this tractor, which is very high.

Swaraj tractors’ USP-

• Swaraj has launched several CSR campaigns under the Swaraj Satkar brand. 
• In addition, Swaraj also hosts various customer interaction events. Also, it includes Swaraj Aabhar, Good Tractor, Safe Driver, and free service camps.
• Moreover, Swaraj has been actively attempting to build one of the most advanced diesel engines. Also, focusing on producing tractors.
• Being a domestic business, Swaraj has built an extensive dealership network with over 850 dealers. Moreover, 5000 staff working under the brand.

HP Range: This world no 1 tractor company, Swaraj Tractor offers more than 20 tractor models. Moreover, in India with horsepower ratings of 11HP to 70HP, including heavy-duty and compact tractors.

Price range: The Swaraj tractor costs between Rs. 2.45Lakh up to 10.50 lakh in India.

Popular Tractor Models: The Swaraj 735 FE , Swaraj 963 FE , Swaraj 735 XT , and others. Also, they are well-known Swaraj tractors are in high demand in India.

3. Massey Ferguson Tractor

If you’re a farmer looking to get a top-notch, multifunctional tractor model. Moreover, feel free to consider the Massey Ferguson tractor line, which is available at an attractive price. Also, the tractor brand is counted as one of the top 10 best tractor brands in India.

Massey Ferguson tractor’ USP-

• manufacturing superior tractor models
• premium brand with lots of cutting-edge technologies
• available at a reasonable cost
• excellent mileage
• most satisfactory customer service available 24/7
• a brand focused on customers that respond to inquiries right away

HP Range: This range starts at 20 HP and goes up to 75 HP for heavy-duty and micro tractors.

Price Range: The new Massey Ferguson tractor set includes more than 30 models, ranging from Rs. 3.25 lakhs to Rs. 16.50 lakhs*.

Popular Tractor Models: The most popular Massey Ferguson tractors in India are the 1035 DI model, the MASSEY FERGUSON 245 DI and 7250 DI models, respectively.

4. Sonalika Tractor

Sonalika is India’s most popular tractor brand for commercial and agricultural utilization. Moreover, it produces no. one tractor models in India that are compatible with all activities and provide the best outcome. Moreover, for marginal farmers, the Sonalika tractor pricing is much more economical in range.

Sonalika tractor’s USP-

• adopting a customer-centric strategy
• Making farming easier by producing affordable tractor models
• offers skilled customer service representatives available around the clock.
• efficient tractor models
• presenting CSR to the public
• having a wide selection of agricultural tools
• offers top-notch after-sales support
• Sonalika tractors are the most valuable to resell.

HP Range- From 20 HP to 90 HP, Sonalika tractor offers more than 50 different tractor types in India.

Price Range: The price range of Sonalika models starts from Rs. 3.25 lakhs and goes up to 17.64 Lakhs.

Popular Tractor Models: The most well-liked Sonalika tractor models are high demand in India. Moreover, include the Sonalika DI 745 III , Sonalika GT 20 , Sonalika Tiger 26 , Sonalika 35 DI Sikander , and Sonalika DI 60 .

5. Farmtrac Tractor

Escort Group offers a variety of Farmtrac tractors in India, from little Farmtrac tractor models to 4wd tractor models. Moreover, all models are produced using cutting-edge technology and are excellent for commercial and agricultural applications and is counted as one of the most famous tractor companies in India.

Farmtrac tractor’ USP-

• Brand Made in India
• advanced engineering and technology
• Depending on the usage, different models are available.
• low-upkeep tractor models
• extremely compatible with typical applications
• offers quality after-sales support

HP Range: There are more than 30 types of Farmtrac tractors in India, ranging in horsepower from 22 to 88.

Price Range: Farmtrac tractors cost between Rs. 4.80 lakh to Rs. 13.70 lakh in India.

Popular Tractor Models: Top best tractor in India from the Farmtrac Tractor brand are Farmtrac 60 , Farmtrac 45 , Farmtrac 6050 , and Farmtrac 6055 .

6. New Holland Tractor

The brand name of the New Holland tractor , no. 1 tractor in India 2022, comes from the American city of the same name. Moreover, they invented the plough for agricultural usage by improvising and expanding the enterprise.

New Holland tractor’ USP-

• Continual quality focus 
• Manufacturing Excellence
• exported from India
• vast selection of tractors
• Farmer favourites

Price ranges: New Holland tractors range from 5.20 lakhs to 26.10 lakhs.

HP range: From 35 HP to 90 HP, there are different tractor types available.

Popular Tractor Models: New Holland 3230 , New Holland 3600 , New Holland 4710 , and New Holland 5630 tractors are the manufacturer’s most popular models. In addition, they are prominent and efficient for accomplishing farm works

7. John Deere Tractor

Nothing Runs Like A Deere is a tagline for the company John Deere. Also, the John Deere brand is defined by its slogan. Moreover, in India, John Deere tractors are renowned for their high professionalism, performance, power, and dependability. The value that John Deere tractors provide justifies their high price and are also known as one of the top 10 tractor companies in world.

John Deere tractor’ USP-

• Performance-oriented goods
• A more comprehensive HP range of tractors is available
• Use of high-quality materials 
• Attractive appearance and uniqueness

Price Range: Prices for John Deere tractors vary widely, from as little as 5.40 lakhs to Rs 31.30 lakhs.. Also, it’s price range is so effective for farmers.

HP Range: There are numerous tractor models with power outputs ranging from 28 to 120 HP (Horse Power).

8. Eicher Tractor

Eicher is number one tractor company in India. Also, one of the well-known tractor brands is Eicher, recognized for its cutting-edge design of air-cooled diesel engines. Moreover, the majority of farms and high-production farms employ these Eicher tractor models.

Eicher tractor’ USP-

• Simple and inexpensive tractors
• Produced in India Brand
• the extensive networks of dealers and services
• services for low-maintenance tractors
• Air-cooled, potent diesel engines provide the power.

HP Range: In India, Eicher Tractor offers more than 17 tractor models with HP ratings ranging from 18 to 60 HP.

Prince Range: Price ranges for Eicher tractors in India range from 3.20 lakhs to 8.50 lakhs. Moreover, which is best for farmers.

Popular Tractor Models: Eicher 380   Eicher 333 , and Eicher 242 are Eicher’s most popular tractor models. Also, they are suitable for every type of farming.

9. Kubota Tractor

An international manufacturer of cutting-edge technology is Kubota. Moreover, a highly recommended and one of the best tractor brands in India that works well for dry farming, rice farming, and other types of agriculture is Kubota. As a result, this brand meets all the requirements for farm mechanization and lives up to farmer expectations.

Kubota tractor’ USP-

• offers high-quality equipment
• Models are known for their strong performance and durability.
• trustworthy customer service
• better support

HP Range: In India, more than ten Kubota tractor models are available. Also, it has horsepower ranging from 21 to 55.

Price Range: The Kubota MU5501 costs between Rs. 9.31 and 11.03 lakh* in India. Also, it is most extraordinary Kubota tractor.

Popular Tractor Models: A few common Kubota tractor types are recommended in India. Moreover, these models include the Kubota Neostar B2441, Kubota MU5501 , Kubota MU4501 , Kubota Neostar B2741 , and numerous others.

10. Captain Tractor

The top tiny tractor brand in India is Captain, and the company exports Captain micro tractors worldwide. In addition to making tractor models , the tiny tractor Captain brand. Also, produces implements tailored to particular crops and tractor accessories and attachments. Moreover, the tractor model’s accessibility and affordability serve as the defining and distinctive factors for the brand’s success. India refers to these Captain tractors as Chota tractors which is also one of the top 10 selling tractor in India.

Captain Tractor’s USP-

• the brand is made in India
• India’s top brand of mini tractors
• India produces the best engines in their class.
• Farmer’s budget-friendly tractor selection is available.

HP Range: These Captain tractor types come in various power ranges, from 15 to 28 HP.

Price Range: Price ranges for captain tractors start at Rs. 3.29 Lakh and reach as high as Rs. 5.00 Lakh. Moreover, which is nominal for both commercial and marginal farmers.

Popular Tractor Models: Captain’s two most popular tractor models are the and Captain 250 DI . Also, these are prominent and efficient.

These are the top 10 Tractor Companies in India, together with all the essential information. Moreover, visit TractorGuru for more such India’s best tractor brands and any tractor-related questions and to read more posts like this.

Relates Blog:- How to Improve Tractor Mileage? Tractor Maintenance Tips

Tractor Financing: Bridging the Financial Gap for Indian Farmers, Paving the Way for Agricultural Excellence

Tractor financing is transforming Indian agriculture, offering simplified processes, digital convenience, and flexibility for farmers and businesses. The sector's future looks promising with substantial growth projections.

Agriculture has been the backbone of India's economy, providing a livelihood to millions of people. Farm equipment, especially tractors, is an essential tool for farmers. Tractors, crucial for farming, empower farmers in daily tasks.  However, not all farmers can afford to purchase tractors outright. To be aware of the programs banks and financial institutions offer a range of financial solutions, such as tractor loans with custom-made EMI options, to help farmers purchase tractors. These financial institutions have also partnered with last-mile banking platforms to make these solutions available to farmers in rural areas. This has helped equip farmers in different villages across India with the tools they need to improve their productivity and income.

Also Read:- Tractor Loan EMI Calculator: Essential Guide to Financing The Tractor

Tractor financing not only provides financial support for the acquisition of essential farming machinery but also offers numerous benefits such as simplified loan processes and increased accessibility for farmers. The streamlined application and approval procedures, coupled with the convenience of online transactions, empower farmers to acquire tractors swiftly. Additionally, the lower interest rates, often categorized as priority sector loans, make tractor financing an affordable option, alleviating financial burdens for farmers. Here is a detailed overview of how tractor financing can help Indian farmers.

Simplified Processes

Tractor loans, secured with the tractor as collateral, streamline processing and disbursement, enabling swift acquisition. Banks and NBFCs simplify application and approval, facilitating easier access to funds for farmers.

Digital Advancements

Adopting technology, banks provide online tractor financing for convenience. Borrowers can apply digitally, saving time. While physical verification remains, digital communication expedites the loan disbursal process, enhancing accessibility.

Favorable Interest Rates

Tractor loans, falling under priority sector loans, often have lower interest rates, making them more affordable than car loans. This cost-effectiveness allows farmers to optimize practices without significant financial burdens.

Also Read:- SBI Tractor Loan Scheme 2023: How to Apply? - Eligibility, Documents Required, Charges, & More

Ease of Documentation

As priority sector loans, tractor financing involves straightforward documentation. Standard identification, address, and income proof suffice, reducing bureaucratic hurdles. This simplicity ensures quick access to funds for farmers.

Tractor financing isn't limited to farmers; businesses in the agricultural sector can benefit. Government-set eligibility criteria and distinct interest rates for farmers and businesses provide flexibility. Assessing various loan options is crucial for informed decision-making.

Future Outlook

Tractors, essential for farmers and businesses alike, contribute to the agricultural sector's growth. Tractor finance, projected to reach $24 billion by 2025, will play a pivotal role in sustaining and enhancing India's agricultural landscape.

Tractor financing emerges as a crucial enabler for Indian farmers, fostering agricultural development by providing financial support, streamlined processes, and favorable terms.

Also Read:- Banks that Offer Tractor Loans at Cheap Rates in India

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About Massey Ferguson India

Massey Ferguson - a world-renowned premium brand offering a wide variety of tractors and farm machinery is an icon in itself and has been reshaping the agricultural landscape of the world since over a century now. Recognized for its technology, innovation and superior build quality, this eminent global tractor brand offers one of the most comprehensive and versatile range of agricultural and utility tractors in the industry.

Our range of premium and technologically advanced Massey Ferguson brand of tractors serve every farmer and every new mechanization need. Crafted with the finesse of TAFE, the Massey Ferguson tractors are built to last.

TAFE - Tractors and Farm Equipment Limited, is an Indian tractor major incorporated in 1960 at Chennai, India, with an annual turnover in excess of INR 12,500 crores. One of the largest tractor manufacturers in the world and the second largest in India by volumes, TAFE sells over 180,000 tractors annually. TAFE is also a significant shareholder in AGCO Corporation, USA – a US $14.4 billion tractor and agricultural equipment manufacturer.

TAFE has earned the trust of customers through its range of products that are widely acclaimed for quality and low cost of operation. A strong distribution network of over 1600+ dealers effectively backs TAFE’s four iconic tractor brands - Massey Ferguson, TAFE, Eicher Tractors and IMT. TAFE exports tractors to over 80 countries, powering farms in Asia, Africa, Europe, the Americas, and Russia.

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Tafe launches world-class heavy haulage tractor - massey ferguson magnatrak in maharashtra.

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TAFE Launches Massey Ferguson 244 & 246 DYNATRACK - 4WD Tractors For West Bengal & Odisha

Tafe’s free tractor rental scheme helps small farmers of tamil nadu cultivate 1 lakh acres, tafe launches massey ferguson 7235 - commercial & haulage special tractor for bihar, jharkhand and haryana, tafe's free tractor rental scheme helps small farmers of rajasthan cultivate over 55,000 acres, tafe launches massey ferguson 7235 - commercial & haulage special tractor for uttar pradesh, tafe tribe | massey ferguson merchandise.

Streak Pen MF

Tea, coffee or anything else - Meet the #SabseBadaAllrounder Mug from TAFE TRIBE. Sturdy, large capacity, big handle for comfortable grip and stylish DYNATRACK inspired design make this mug an essential collectible for every MF fan!

Aqua Neo Massey Water Bottle

The CamouCap

The atTractor - MF2635 Keyring

The atTractor - MF 2635 Magnet

DYNATRACK Mug

DYNATRACK Cap

It’s bright and bold – just like your MF. Looks great, saves you from the sun and keeps you cool – Wear it and own the day with the DYNATRACK Cap!

Showstopper Tie

This premium, classic piece of elegance in microfiber is a cut above the rest. Complete your formal look with the Showstopper Tie inspired by the Massey Ferguson 2635 tractor and its fine design language.

The Showstopper MF 2635 - Scale Model

1:32 scale model of The Showstopper - the #SuperRedMachine, the Massey Ferguson 2635, with an AC cab. This is a must have for a true MF fan! Made of metal, plastic and passion.

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Writing a Car Dealership Business Plan [Sample Template]

By: Author Tony Martins Ajaero

With a population of 1.324 billion as of 2016, india remains a vibrant market for whatever goods or services an entrepreneur decides to go into and if you are interested in starting a business in India, one of your options is to open a car dealership shop; a place where both used and new cars will be retailed. It is indeed a thriving and profitable business in India especially with the growing population of the middle class.

If you are sure this type of business is what you truly want to do after you must have conducted your feasibility studies and market research, then the next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services amongst others.

The truth is that it is one thing to have a fantastic business plan, but it is another thing for the business plan to translate to profits, which is why it is important to assemble a team of dedicated workers to work with if you want to be successful with your car dealership business.

Below is a sample car dealership business plan template in India that will help you successfully write yours with little or no stress.

A Sample Car Dealership Business Plan Template India

1. industry overview.

Players in the car dealership industry sell both brand new and used cars and they may fall into any of the following niche areas; brick and mortar car dealership shop, online used cars dealership shop, locally produced car dealership shop, imported car dealership shop, luxury car dealership business and multi – brand and multi – maker car dealership.

The auto industry in India is one of the leading auto industries in the globe. As a matter of fact, the auto industry contributes 7.1 per cent of the country’s Gross Domestic Product (GDP). The Two Wheeler segment with 80 percent market share is the leader of the Indian Automobile market owing to a growing middle class.

Additionally, the growing interest of companies in exploring the rural markets further helped the growth of the sector and the overall Passenger Vehicle (PV) segment has 14 percent market share.

Statistics has it that about 4 million cars are manufactured in India, one of Asia’s largest markets in the 2015/2016 fiscal year. The automotive industry in India is growing and becoming more important for Indian citizens with 14.9 million jobs projected to exist by 2022.

India is also one of the leading auto exporters in the world with positive export growth potentials going forward. Lastly, starting a car dealership business just like starting any other business might not be easy but it is a straight – forward business that can generate huge and steady profits if well positioned and properly managed.

People often think that starting this type of business does not require any professional skills; in as much as it is true, you would still need a good knowledge of automobiles, good business skills, bargaining skills and of course customer services skills if indeed you want to build a profitable car dealership business.

2. Executive Summary

Raj Ravi Khan® Car Dealership, Inc. is a registered car dealership shop that will be located in one of the busiest business districts in the city center in Mumbai – Maharashtra. We have been able to lease a facility that is big enough (a 4 thousand square foot facility) to fit into the kind of standard car dealership shop that we intend opening.

At Raj Ravi Khan® Car Dealership, Inc., we will be involved in the sale of both brand new and used cars from different manufacturers from India and abroad. We are set to service a wide range of clientele in and around Mumbai – Maharashtra.

We are aware that there are several car dealership shops all around Mumbai – Maharashtra, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors. We have an online service option for our customers, and our garage is well secured with various payments of options.

Raj Ravi Khan® Car Dealership, Inc. will ensure that all our customers are given first class treatment whenever they visit our garage. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they may grow to. We will ensure that we get our customers involved in the selection of car brands that will be in our garage.

Raj Ravi Khan® Car Dealership, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize us.

Raj Ravi Khan® Car Dealership, Inc. is a family business that is owned by Raj Ravi Khan and his immediate family members. Raj Ravi Khan is an auto freak with good knowledge of various car brands manufactured both in India and abroad.

He has a robust business network with a host of car manufacturing companies in India. Raj Ravi Khan has plans to open Raj Ravi Khan® Car Dealership, Inc. all across the 29 states and 7 union territories (including a national capital territory) in India.

3. Our Products and Services

Raj Ravi Khan® Car Dealership, Inc. is in the car dealership industry to service a wide range of clients and of course to make profits, which is why we will make available a wide range of both brand new and used cars from top manufacturing brands in India and other countries of the world.

We will ensure that we do all that is permitted by the law of India to achieve our aim and objectives of starting the business.

4. Our Mission and Vision Statement

• Our vision is to build a car dealership business that will become the number one choice for both corporate clients and individual clients in the whole of India.
• Our mission is to establish a car dealership garage business that will make available a wide range of cars from top manufacturing brands at affordable prices to the residents of Mumbai and across all the States in India where we intend opening our car dealership garages and franchise.

Our Business Structure

Our intention of starting a car dealership business is to build a standard car dealership garage in Mumbai – Maharashtra. Although our car dealership garage business might not be one of the biggest in India, but will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.

We will make sure that we recruit people that are qualified, honest, customer centric and are ready to work to help us build a prosperous car dealership business that will benefit all our stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Garage Manager
• Human Resources and Amin Manager
• Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants
• Sales Agents/Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office cum business activities.

Garage Manager:

• Responsible for managing the daily activities in the car garage
• Ensures that proper records of cars are kept and the garage does not run out of used cars
• Ensures that the garage facility is in tip top shape and cars are properly arranged and easy to locate
• Controls car distribution and supply chain inventory
• Supervises the workforce in the car garage sales floor

Merchandise Manager

• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of cars from different manufacturers are purchased and retailed in good price that will ensure we make good profit
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Manages the organization website
• Handles eCommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant 

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
• Responsible for cleaning and washing all the cars in the garage at all times
• Ensures that toiletries and supplies don’t run out of stock
• Handles any other duty as assigned by the garage manager

6. SWOT Analysis

Our major aim of starting just one outlet of our car dealership shop in Mumbai – Maharashtra is to test run the business for a period of 7 years to know if we will invest more money, expand the business and then open other outlets in India.

We are quite aware that there are several car dealership garages all over Mumbai – Maharashtra and even in the same location where we have plans to open ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Raj Ravi Khan® Car Dealership, Inc. employed the services of an expert HR and Business Analyst with bias in car dealerships to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Raj Ravi Khan® Car Dealership, Inc.;

Our business location, the business model we will be operating, varieties of payment options, wide range of both brand new and used cars from different manufacturing brands and our excellent customer service culture will definitely count as a strong strength for Raj Ravi Khan® Car Dealership, Inc.

From our findings, one major weakness that may work against us is the fact that we are a new car dealership garage in Mumbai – Maharashtra and we don’t have the financial capacity to compete with multi – million car garages that can afford to purchase fleets of cars in one fell swoop.

• Opportunities:

A population of over 1.3 billion people and a growing population of the middle class in India provide us with unlimited opportunities to sell our cars to a large number of individuals and corporate organizations. We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our car garage; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new car dealership outlet in same location where ours is located. So also, unfavorable government policies may also pose a threat to businesses such as ours.

7. MARKET ANALYSIS

• Market Trends

The trend in India shows that the auto industry is set to witness major changes in the form of electric vehicles (EVs), shared mobility, Bharat Stage-VI emission and safety norms amongst other.

Electric cars in India are expected to get new green number plates and may also get free parking for three years along with toll waivers. India’s electric vehicle (EV) sales increased 37.5 per cent to 22,000 units during FY 2015-16 and are projected to rise further on the back of cheaper energy storage costs and the Government of India’s vision to see six million electric and hybrid vehicles in India in the nearest future.

If you have ever taken your time to study car patronage and usage in India, you will have noticed that Indians especially the middle class make use of cars that are manufactured in India. This goes to show that there is a thriving business for car manufacturers in India.

One notable trend in the car dealership industry is that most car dealers are leveraging on online stores to sell their used cars to a large market.

The used car dealership garage landscape has seen tremendous changes in the last 20 years; it has grown from smaller outlets to a more organized and far reaching venture. The introduction of franchise and online car dealership makes it easier for a car dealership garage to reach out to a larger market far beyond the areas where their physical store is located.

8. Our Target Market

Those who purchase cars cut across all genders above 18 years; hence the target market for car dealership business is all encompassing. In essence, your target market can’t be restricted to just a group of people, but all those who desire to own a car.

In view of that, we have positioned our car dealership garage to service the residents of Mumbai – Maharashtra and every other location where outlets of our car dealership garage will be located. We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us.

We are in business to retail a wide range of cars to the following groups of people and corporate organizations;

• Middle Class Families
• Upper Class Families
• Corporate Organizations
• Celebrities
• Corporate Executives

Our Competitive Advantage

A close study of the global car dealership industry reveals that the market has become much more intensely competitive over the last decade especially with the advent of online car dealership stores. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the competition and we are prepared to compete favorably with other leading car dealership garages in Mumbai – Maharashtra and throughout major cities in India.

Raj Ravi Khan® Car Dealership, Inc. is launching a standard car dealership garage that will indeed become the preferred choice for people who live and work in Mumbai – Maharashtra and every other location where our outlets will be opened.

Our car dealership garage is located in one of the busiest business districts in the city center in Mumbai – Maharashtra. We will ensure that we have a wide range of cars brands from leading manufacturers both in India and abroad in our garage at all times. It will be difficult for customers to visit our garage and not see the type of car they are looking for.

One of our business goals is to make Raj Ravi Khan® Car Dealership, Inc. a one stop car dealership shop. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Raj Ravi Khan® Car Dealership, Inc. is in business to retail a wide range of both brand new and used cars to people in Mumbai – Maharashtra and every other location where we intend opening our outlets. Our source of income will be the retailing of a wide range of cars from different car manufacturing brands at affordable prices.

10. Sales Forecast

One thing is certain when it comes to car dealership business, if your garage has various brands of new and used cars from different manufacturing brands and is centrally positioned, you will always attract customers that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in and around Mumbai – Maharashtra and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation and grow the business and our clientele base.

We have been able to critically examine the car dealership industry in India, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Mumbai – India.

• First Fiscal Year: INRs. 8 Million
• Second Fiscal Year: INRs. 18 Million
• Third Fiscal Year: INRs. 26 Million

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor within our market space. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Raj Ravi Khan® Car Dealership, Inc. we conducted thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for people and organizations in and around Mumbai – Maharashtra and every location where we intend opening our outlets.

We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the car dealership industry in India to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Mumbai – Maharashtra, India.

In summary, Raj Ravi Khan® Car Dealership, Inc. will adopt the following sales and marketing approach to win customers over;

• Open our car dealership garage in a grand style with a party for all to attract people who live around our car dealership garage
• Introduce our car dealership garage by sending introductory letters alongside our brochure to households, corporate organizations, businesses and other key stakeholders in and around Mumbai – Maharashtra
• Ensure that we have a wide range of both brand new and used cars from different brands at all times.
• Make use of attractive hand bills to create awareness and also to give direction to our garage
• Position our signage/flexi banners at strategic places around Mumbai – Maharashtra, India
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage in roadshows within our neighborhood to create awareness for our car garage
• List our business and products on yellow pages’ ads (local directories)
• Leverage on the internet to promote our business
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

In spite of the fact that our car dealership garage is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our car dealership garage. Raj Ravi Khan® Car Dealership, Inc. has a long-term plan of opening our car garages in various locations all around key cities in India which is why we will deliberately build our brand to be well accepted in Mumbai – Maharashtra before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Raj Ravi Khan® Car Dealership, Inc.;

• Place adverts on community based auto newspapers, radio and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Mumbai – Maharashtra
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Advertise our cars dealership business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and trucks and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

We are aware of the pricing trend in the car dealership industry which is why we have decided to build robust business relationship with car manufacturers in India so as to enable us get cars at good prices and also sell at good prices.

In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our cars are sold a little bit below the average price of various car brands in India. We have put in place business strategies that will help us run on low profit for a period of 6 months; it is a way of encouraging people to buy into our car dealership brand.

We know we don’t have the capacity to compete with big players in the car dealership industry but we will ensure that the prices and quality of all the cars that are available in our garage are competitive with what is obtainable amongst car garages within our level.

• Payment Options

The payment policy adopted by Raj Ravi Khan® Car Dealership, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of India.

Here are the payment options that Raj Ravi Khan® Car Dealership, Inc. will make available to her clients;

• Payment via bank transfer
• Payment via credit cards / Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for our cars without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our cars.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard and highly competitive car dealership business in Mumbai – Maharashtra, India and here are the key areas where we will spend our startup capital;

• The total fee for registering the business in India – INRs. 9,200
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – INRs. 15,700.
• Marketing promotion expenses for the grand opening of Raj Ravi Khan® Car Dealership, Inc. in the amount of INRs. 13,000 and as well as flyer printing (2,000 flyers at INRs. 1.00 per copy) for the total amount of INRs. 8,980.
• The cost for hiring business consultant – INRs. 4,000
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – INRs. 15,000
• The cost for payment of rent for 12 months at INRs. 6.00 per square feet in the total amount of INRs. 200,000
• The cost for garage remodeling – INRs. 50,000.
• Other start-up expenses including stationery (INRs. 3,000) and phone and utility deposits ( INRs. 11,000 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – INRs. 260,000
• The cost for start-up inventory (stocking with a wide range of brand new and used cars from different manufacturing brands) – INRs. 12 Million
• The cost for store equipment (cash register, security, ventilation, signage) – INRs. 23,750
• The cost of purchase and installation of CCTVs: INRs. 10,000
• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): INRs. 50,000.
• The cost of launching a website: INRs. 7,000
• The cost for our opening party: INRs. 29,000
• Miscellaneous: INRs. 10,000

We would need an estimate of INRs. 12.5 million to successfully set up our standard car dealership garage in Mumbai – India.

Generating Startup Capital for Raj Ravi Khan® Car Dealership, Inc.

Raj Ravi Khan® Car Dealership, Inc. is a private registered business that is solely owned and financed by Raj Ravi Khan and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the bank

N.B: We have been able to generate about INRs. 2.5 million (Personal savings INRs. 2 million and soft loan from family members INRs. 500,000 ) and we are at the final stages of obtaining a loan facility of INRs. 10 million from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Raj Ravi Khan® Car Dealership, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to retail our wide range of cars a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Raj Ravi Khan® Car Dealership, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the garage: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party planning: In Progress
• Compilation of list of cars available in our garage: Car Dealership Business Plan
• Establishing business relationships with manufacturers of cars in India and abroad, used car auction houses in India and abroad and other car dealership garages in and around Mumbai – Maharashtra, India: In Progress

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