Your Ultimate Guide to start a Kia Dealership – Cost, Profit

By Startup Authority May 5

The automotive industry in India is the fourth-largest by production in the world as per reports from 2021 statistics. The numbers keep rising each day with every new type of vehicle being launched in the Indian market by both Indian brands and as well as foreign players.

Tata being one of the major players in the market is really doing great when it comes to safety whereas other foreign brands like Kia is offering hi-tech features in its car models which is becoming one of the major attractions among the consumers in India

Entrepreneurs those who wish to start an automobile dealership business in India can go for several brands Kia being one of them. Kia is a brand that has earned quite the reputation for delivering hi-tech stylish looking vehicles and the brand designs one of the most attractive-looking vehicles today. Considering Kia’s dealership franchise today could be one of the most beneficial options if you wish to start an automobile dealership in India.

How To Get a Kia Dealership?

Kia is a South Korean automobile company which is owned by Hyundai Motor Group. The brand had entered the Indian market on May 2017 following an announcement of the construction of a new 536-acre manufacturing facility in Andhra Pradesh. Indians were looking for an ideal compact SUV and this is where Kia rolled out its Seltos which became a popular car among Indians.

Getting Kia dealership may not be for regular people because the investment required and all other things about its eligibility seems to be quite strict and must be met. However, if you are eligible for its dealership then you can first start by filling out an application form. Go to the search engine and search for ‘Kia Dealership Application Form’ and the very first website that appears on top of the page is the official website to register for the dealership program.

Make sure you go through the terms and conditions, requirements, investment required, and all other crucial details thoroughly before applying for the dealership. Since the investment is a huge amount you should inquire about any hidden charges or fees beforehand.

Different Types Of Kia Dealership Stores

Kia Motors offer different types of dealership to interested entrepreneurs and partners those who wish to be a part of its dealership. Being one of the most heavily invested automobile brand in India, Kia would look to give out its franchise to the most eligible and capable entrepreneurs in India. However, let us have a look at the types of Kia dealership offered by the company.

Kia Car Agency

In this type of dealership interested entrepreneurs can start the sale purchase business of Kia Motors. It is one of the most common type of dealerships that most entrepreneurs look for. But, since the company is offering different options of dealerships it would be wise to check them out too.

Spare Part Dealership

Kia Motors offer its spare part dealership program as well where entrepreneurs can start spare part dealership business of Kia. it is one of the most important and a crucial part of the automobile industry and if you are interested to open one then you may partner up with Kia Motors. The spare part dealership requires much less investment than car agency dealership.

Authorised Service Center

Kia Motors offer dealerships for its service centres as well. The company is truly giving freedom to interested entrepreneurs to open any type of the above depending on their interest and the amount of investment that they are ready to invest. In case an entrepreneur has got enough investment to start all of the above types of business then they can do that as well.

Investment Required to start a Kia Dealership

Kia has become a massive brand in the automobile industry today and it is also obvious that taking its dealership would be a huge amount. The total investment would depend on various factors like the type of franchise/dealership that you wish to take. Also, if you have got your own land at a prime location with parking space and all other things then the investment would be different when compared to purchasing a land and then starting a Kia dealership program.

In major cities the cost of land could be around INR 15 crores to INR 20 crores excluding the showroom’s setup cost. Agency building cost would be around INR 30 lacs to INR 40 lacs. The company also charge a security fee from its franchise owners which could be around INR 10 lacs to INR 20 lacs. Miscellaneous costs like salary of staff would be around INR 5 lacs to INR 10 lacs. The stock cost would come to around INR 1 crore to INR 1.5 crore.

The total investment amount is expected to be around INR 20 crores to INR 30 crores if you wish to start by purchasing your own land at a prime location. If you wish to know more in detail about such financial details then it would be a wise option to directly get in touch with the company.

Services Offered At A Kia Dealership Store

Kia will offer you with support from every aspect if you wish to take its dealership. The company would want experienced and knowledgeable entrepreneurs to be a part of their dealership program because the goodwill of the company will be attached with you for a long period of time after the deal is made.

There will be a lot of interviews and meetings be held between you and the company personnel where you will understand the support and services that you will be receiving from the company as soon as you are given the greenlight for its dealership program.

However, a local Kia dealer will provide different kinds of services like roadside assistance, accessories, navigation updates, and many more. The official website of the company reveals all the services that a Kia dealer will be offering to their customers. If you are visiting a Kia dealer store as a partner then they might urge you to talk to a senior person or fill out a form online.

You will be receiving services and support from the company only if the company has decided to get you onboard as their dealership program. Therefore, it would be a wise option to directly get in touch with the company to know such details.

Documents Required before starting a Kia Dealership

Personal documents (ID Proof documents): Aadhaar card, Voter Card, PAN Card
Address proof: Ration Card, Electricity bill,
Bank account details with Passbook details
Passport size photographs
Email ID
Phone number
Property documents (complete property documents with title and address)
Lease agreement (if any)
All types of NOC
GST Number and GST Certificate
Trade Licence

Manpower Required to run a Kia Dealership

If you have visited any automobile showroom nearby then you may have noticed that there are many professional workers and as well as normal staff members working at the store. Therefore, with a similar scenario your store should also have the required manpower after you have setup the dealer and want to start your business immediately. Professionals like salesperson, help desk employee/receptionist, staff members like peon, and helpers, hygiene and maintenance staff, security guards and many more.

The total manpower required would be around 10-15 people at a Kia dealership store. Customers visiting the store must feel welcomed and they must be treated with extreme professionalism and salesperson should be knowledgeable and must know how to handle customers with respect. If wrong employees are hired then it could prove fatal for your business and as well as the overall goodwill of the company.

Area Required to start a Kia Dealership

The area required for opening a Kia store would be huge because a lot of space would be required for parking, sitting area for customers, office space, advertising, and such. The land should be on road and should not have any kind of objection from the government.

The area required for office could be around 400 sq ft to 500 sq ft.
Space required for the showroom could be around 1000 sq ft to 1500 sq ft.
Space for car parking could be around 1500 sq ft to 2000 sq ft.
Store space of 500 sq ft to 1000 sq ft.
Workshop space 800 sq ft to 1200 sq ft
Total space/area required: 6000 sq ft to 7000 sq ft

Average Profit Margin from a Kia Dealership

A dealership of Kia can earn a good amount of profit considering the fact that the company has become one of the most reputed brands in India. Kia has been actively and effectively spending a large amount of money on their marketing and advertising campaign ever since it has entered the Indian market which is why most people already have the preconceived notion that whenever they wish to buy a car they consider Kia Motors.

Kia Motors also introduces new products which are able to catch the market quite easily because of the features and overall look and design. This is one of the advantageous point for a dealership because it will automatically attract new car buyers.

The company offers different kinds of profit margin on its product type like the model of the car and selling spare parts would have different profit margin. If you want to know about the profit margin then you can directly contact the company.

Is Kia Dealership profitable?

Kia sold close to 10,000 cars of its Sonet model in the year 2023 which is quite a huge number. However, the other models are also receiving quite the name and fame in the Indian market and has proved to be profitable for the company.

The company’s reputation and goodwill has become strong over the past couple of years and has built a strong customer base and therefore it would be justified to say that Kia dealership when opened in a prime location could be a profitable business.

FAQ

Is Kia dealership a good option to start business?

Ans: Kia dealership is the best option to start an automobile dealership business in India. If you have the required amount of investment ready then you can go for Kia franchise or dealership in India.

How many Kia outlet dealerships are there in India?

Ans: According to Cardekho.com Kia has got 333 car showrooms across 225 cities in India. If you wish to take its dealership then you can apply for it online.