What’s Auto Dealer Profit Margin in India?

[ilango[speed thirst]]

Any idea about the profit , that the car dealer make with us?

ok , How much profit does a innova top model give to the dealer.

I'll answer after a week.(This is after a discussion with a sales executive of toyota here)

 

[raj_5004]

hmmm, maybe 25-50k per car.

 

[vijay]

well it differs from company to company, brand to brand and segment to segment, like a maruti dealer wont be getting same profit on maruti cars as to what a honda and toyota dealer would be getting.

 

[RSM]

I think there will be some percentage, which dealer would be getting.

I believe, it should be in range of 10-15% of the ex-showroom price. So assuming toyota price to ~10L, they must be making 1-1.5L??

 

[vijay]

well nearly to that.I know on WagonR, a dealer earn around 30 to 45K's, anywhere in between these figures.so calculate.

 

[cooldhaya]

As Vijay mentioned the profit varies depending on the company and segment!


And i guess top model will be fetching more profit than the base model!

 

[Aditya]

I am sure the dealer is not making more than 10K off a car in the segment of the Wagon R or the i10.
Even from that, he will be giving some back to the customer in the form of SOPs.
They mostly will be making money from accessories, service, and volume bonuses.

 

[ilango[speed thirst]]

Among the above post only one is correct.

Yeah it differs to companies. But almost the same.
I'll answer about the innova after i come home from bangalore expo

 

[raj_5004]

hey guys, i agree it varies with respect to company & model, but here is asking about the innova as a reference.

Any idea about the profit , that the car dealer make with us?

ok , How much profit does a innova top model give to the dealer.

I'll answer after a week.(This is after a discussion with a sales executive of toyota here)

 

[350Z]

Of course the margin varies per model; one can not expect to charge on a Maruti 800 as of a Honda City, Just an instance. As of about Innova top-end V variant, which Ilango asked, My guess is Rs. 50,000 to a Lakh?

Drive Safe,
350Z

 

[RSM]

How much dealer makes profit on servicing, specially in free servicing?

 

[P3T3R]

How much dealer makes profit on servicing, specially in free servicing?

The company pays the dealer to do the servicing. Same for warranty repairs.

Of course the margin varies per model; one can not expect to charge on a Maruti 800 as of a Honda City, Just an instance. As of about Innova top-end V variant, which Ilango asked, My guess is Rs. 50,000 to a Lakh?

My +1 to that/

 

[vijay]

I am sure the dealer is not making more than 10K off a car in the segment of the Wagon R or the i10.
Even from that, he will be giving some back to the customer in the form of SOPs.
They mostly will be making money from accessories, service, and volume bonuses.

oops yeah, sorry my mistake, yeah on a model like WagonR, a dealer earns around 10K on one car, and i am very much sure for this amount, as one of my dealer friend of maruti had an inccident where one WagonR went missing/stolen and he did told me that to re-earn that one car he would have to sell 35+ wagonR to get his investment back on that stolen car.
For Innova top end, where the thread starter asked, dealer earns around 65 to 90K's + incentives.Toyota dealer earns more then other companies dealer as they have one dealer policy per city atleast herein Gujarat so he does earns more.

 

[RSM]

I am wondering who pays for test drive vehicles? Delaer or manufacturer?

 

[Aditya]

I am wondering who pays for test drive vehicles? Delaer or manufacturer?

My understanding is that the base vehicle price is borne by the dealer, customizations and decals etc. are done by the manufacturer to ensure a harmony across the various dealerships.