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Frequently Asked Questions

1. How much deposit is to be paid to the company?
A. GMW takes a refundable deposit of INR 2,00,000 from the dealer.

2. How many days’ credit is given for vehicle stock by the company?
A. GMW will send the vehicle only on advance payment. Credit is not given by the company. However, credit on the stock can be availed from GMW’s banking partners.

3. What is the dealer’s order policy? Will the company supply vehicles without order?
A. GMW will supply vehicles as per dealer’s order only.

4. What is the period of dealership agreement with the company?
A. Dealership Agreement with the company is renewable after every two years.

5. What will be the area of operations for the dealership?
A. Distinct area of operation will be given to the dealership for sales and service related activities. This is called as command area. Cross selling in other dealer’s area is not allowed.

Investment and Returns

6. What is the investment required to start new dealership?
A. Other than land and building, dealer will be required to invest as per the following details:
– Interior (showroom, workshop, equipment) – Rs. 10-13 lakhs
– Vehicles, Spares and Accessories stock – Equivalent to one month’s sale
– Dealership Fee – 7 lakhs

7. Working capital from bank or own funds:
A (Indicated monthly sale potential x Rs.1,20,000) For example, if the indicated monthly sale potential is 100 vehicles per month, then the working capital required will be 100 X Rs.120000 = Rs. 120 Lacs + Spare Parts

Support from company

8. What support will be given by the company to new dealership?
A. – Company will provide all layouts, drawings and interior designs for showroom and workshop which will be as per GMW dealership corporate identity norms
– Company will provide manpower training to workshop technical staff at company’s locations.
– Training to the sales team will be provided on product features, customer handling, sales process.