Starting an electric bike dealership can be a lucrative and fulfilling business opportunity. With the increasing demand for electric bikes in the country, this article will guide you through the process of establishing your own electric bike dealership in India.
Steps to Apply for an Electric Bike Dealership in India

- Choose a brand: There are many electric bike manufacturers in India, such as Hero Electric, Mahindra, TVS, Bajaj, and Joy. You can research their products, prices, features, reviews, and customer service to find the best fit for your target market and budget. You can also visit their websites or showrooms to get more information about their dealership requirements and policies.
- Contact the company: Once you have decided on a brand, you can contact the company through their website, phone, email, or social media. You will need to provide some basic details about yourself, such as your name, age, qualification, location, property owned, investment amount, current business turnover, etc. You will also need to agree to their terms and conditions and privacy policy.
- Submit your application: After contacting the company, you will receive an application form that you need to fill out and submit along with the required documents. The documents may include your identity proof, address proof, PAN card, GST registration certificate, bank statement, property papers, etc. The company will verify your application and conduct a background check to assess your suitability for the dealership.
- Get approval: If your application is approved by the company, you will receive a confirmation letter or email from them. You will also need to sign a dealership agreement that outlines the roles and responsibilities of both parties, such as the sales targets, commission rates, warranty terms, marketing support, training programs, etc.
- Set up your showroom: After signing the agreement, you will need to set up your showroom according to the company’s guidelines and specifications. You will need to arrange for a suitable location, infrastructure, equipment, staff, inventory, etc. You will also need to obtain the necessary licenses and permits from the local authorities to operate your business legally.
- Start selling: Once your showroom is ready, you can start selling electric bikes to your customers. You will need to follow the company’s sales policies and procedures and provide excellent customer service. You will also need to maintain a good relationship with the company and report your sales performance regularly.
Benefits of Becoming an Electric Bike Dealer in India
- You can tap into a growing market that has a huge potential for growth and profitability. According to a report by Avendus Capital, the electric two-wheeler market in India is expected to grow at a compound annual growth rate (CAGR) of 44% from 2020 to 2025 and reach 6.3 million units by 2025.
- You can avail of various incentives and subsidies from the government to promote electric mobility in India. The FAME India scheme (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) provides a subsidy of Rs 10,000 per kilowatt-hour of battery capacity for electric two-wheelers. The GST rate for electric vehicles is also lower than that for conventional vehicles at 5%.
- You can offer a wide range of products and services to your customers that cater to different needs and preferences. Electric bikes come in various models,
designs, colors, features, and prices that suit different segments of customers. You can also provide after-sales services such as battery charging stations,
maintenance tips, warranty claims, etc. - You can contribute to environmental sustainability and social responsibility by reducing carbon emissions and noise pollution from transport. Electric bikes are eco-friendly and help in preserving natural resources and improving air quality. Electric bikes also create employment opportunities for local people who can work as mechanics,
technicians, salespersons, etc. - You can enjoy a competitive edge over other dealers who sell conventional two-wheelers by offering innovative and attractive products that appeal to modern customers who are looking for smart and convenient mobility solutions. Electric bikes are easy to use and operate and have advanced features such as digital displays, GPS navigation, remote locking, etc.
Challenges and Opportunities in the Electric Bike Market in India
The electric bike market in India is not without its challenges and opportunities. Some of the major challenges are:
- Lack of awareness: Many customers are not aware of the benefits of electric bikes or how they work. They may have misconceptions about their performance, safety, durability, etc. They may also be reluctant to switch from their traditional two-wheelers due to habit or loyalty. Therefore, dealers need to educate and inform customers about electric bikes and their advantages.
- Lack of infrastructure: The availability and accessibility of charging stations, service centres, spare parts, etc. are still limited in many parts of India. This may pose a problem for customers who want to use electric bikes for long distances or in remote areas. Therefore, dealers need to ensure that they provide adequate and reliable infrastructure and support for their customers.
- High initial cost: The upfront cost of electric bikes is still higher than that of conventional two-wheelers due to the high cost of batteries and other components. This may deter customers who are price-sensitive or have low disposable income. Therefore, dealers need to offer attractive financing options and schemes to make electric bikes more affordable and accessible for customers.
Some of the major opportunities are:
- Government support: The government is actively promoting and supporting the adoption of electric vehicles in India through various policies and initiatives such as the FAME India scheme, the National Electric Mobility Mission Plan, the National Mission on Transformative Mobility and Battery Storage, etc. These policies and initiatives provide various incentives and benefits for electric vehicle manufacturers, dealers, and customers such as subsidies, tax exemptions, loans, grants, etc.
- Customer demand: The demand for electric bikes is increasing among customers who are looking for alternative and sustainable mobility solutions that are convenient, cost-effective, and eco-friendly. Customers are also becoming more aware of the environmental and social impacts of their transport choices and are willing to adopt greener and cleaner modes of transport. Therefore, dealers can capitalize on this growing customer demand and offer products and services that meet their expectations and needs.
- Technological innovation: The technology behind electric bikes is constantly evolving and improving to enhance their performance, efficiency, durability, safety, etc. New features and functionalities are being added to electric bikes to make them more attractive and user-friendly for customers. Therefore, dealers can leverage the latest technological innovations and trends to offer products and services that are innovative and competitive in the market.