Calculate the total capital required to start any dealership in India — showroom deposit, opening stock, working capital, staff costs, and projected monthly ROI.
Dealership Investment Breakdown
Most aspiring dealers underestimate costs by 30–40% because they only account for the security deposit and initial stock, missing working capital and ramp-up costs.
Dealership Type
Setup Cost
Dealer Margin
Typical ROI
Two-Wheeler Auto
₹30–80L
4–7%
15–22%
Four-Wheeler Auto
₹2–10Cr
2–5%
12–18%
FMCG / Consumer
₹5–20L
8–15%
20–35%
Electronics / Appliances
₹15–50L
6–12%
18–28%
Industrial Equipment
₹25–75L
10–20%
20–35%
Dealership Investment FAQs
A dealership typically sells a brand's products directly to end consumers (e.g., car dealership, electronics store) and often requires a showroom. A distributorship sells to retailers/businesses in a territory. Dealers usually require higher investment but get better margins and brand support. Distributors need lower investment but handle logistics and retailer credit.
Dealership ROI = (Annual Net Profit / Total Investment) × 100. Net profit includes: dealer margin on primary sales + service/aftersales revenue + accessories sales − staff costs − rent − overheads. Automobile dealers earn a blended margin since vehicle sales margin is low (2–5%) but service revenue is high-margin (30–50%).
Working capital for a dealership = opening stock value + 60-day receivables (if you extend credit to institutional buyers) + 3 months of operating expenses. For most dealerships, working capital is 40–60% of total investment. Use our Working Capital Calculator for a detailed breakdown.