How do Ampere (Greaves) franchisees make money?
Franchisees earn margin on electric two-wheeler sales above the parent's wholesale cost, plus higher-margin revenue from after-sales service (maintenance, repairs, diagnostics) and genuine spare parts sales. The dealership model carries no royalty on sales, so margin is retained by the franchisee subject to parent wholesale pricing and local competitive dynamics.
What is the Ampere (Greaves) franchise cost?
Minimum capex is Rs 25 lakh and franchise fee is Rs 3 lakh. The dealership requires approximately 2000 square feet of space. There is no ongoing royalty on sales.
What revenue streams does an Ampere (Greaves) franchisee have?
Electric two-wheeler vehicle sales (primary), after-sales service and maintenance (secondary), and genuine spare parts and accessories sales (secondary).
Is Ampere (Greaves) franchise revenue seasonal or steady?
Electric two-wheeler sales are weather and festival-sensitive, with peaks during monsoon and post-monsoon months and seasonal buying tied to bonus and harvest cycles. Service revenue is steadier if the franchisee builds strong customer retention. Overall revenue is subject to category growth cycles and local market saturation rather than being predictably steady.
How many Ampere (Greaves) dealerships are currently operating in India?
Ampere (Greaves) operates approximately 400 dealerships across India, spanning Tier-1, Tier-2, and Tier-3 cities. This network reflects the brand's presence since 2008, when Greaves Cotton entered the electric two-wheeler market ahead of major subsidy cycles. The dealership density varies by region based on urban penetration and local EV adoption rates.
What is the total investment required to open an Ampere (Greaves) dealership?
Total minimum investment for an Ampere (Greaves) dealership is ₹35 lakh, comprising ₹25 lakh capex (showroom fit-out, equipment, signage) and ₹10 lakh working capital for initial inventory and operational expenses. The franchise fee is ₹3 lakh. This total positions Ampere (Greaves) as a relatively lean entry point for automotive retail compared to conventional two-wheeler or four-wheeler dealerships.
Does Ampere (Greaves) charge royalty on franchise sales?
No, Ampere (Greaves) charges 0% royalty on sales. Franchisees retain the full margin on each vehicle sold and service transaction completed, subject to parent-set wholesale pricing. This royalty-free structure is unusual in franchise automotive and reflects Greaves' focus on building EV ecosystem density and capturing long-term service and parts revenue rather than extracting upfront franchise fees.
How much space is required for an Ampere (Greaves) dealership?
An Ampere (Greaves) dealership requires a minimum of 2,000 square feet. This space accommodates a modest showroom for vehicle display, a service bay for maintenance and repairs, and customer waiting area. The compact footprint relative to four-wheeler dealerships reflects the smaller vehicle size and lower inventory density typical of two-wheeler retail.
What training does Ampere (Greaves) provide to new franchisees?
Ampere (Greaves) provides 5 days of initial training covering vehicle specifications, sales techniques, service protocols, parts management, and customer support systems. The training equips franchisees and their sales and service teams with product knowledge and operational procedures aligned with brand standards. Ongoing support is available through the parent's dealer network and technical teams.
What is the owner involvement level required for an Ampere (Greaves) dealership?
Owner involvement is high. As an authorized dealer, you are responsible for day-to-day operations including sales management, service delivery, inventory control, customer relationships, and financial performance. Unlike some franchise models, the owner or a dedicated manager must oversee the dealership actively to manage cash flow, staff, and local market dynamics effectively.
Can I source spare parts independently for an Ampere (Greaves) dealership?
No, genuine spare parts and service consumables must be sourced through Ampere (Greaves)' authorized distribution network at parent-set wholesale margins. Independent sourcing is not permitted for warranty-covered service work. This centralized supply chain ensures quality control and warranty validity, but concentrates margin control and inventory purchasing power with the parent company.
What vehicle margin can Ampere (Greaves) franchisees expect?
Ampere (Greaves) franchisees typically earn 10–15% margin on electric two-wheeler sales above the parent's wholesale cost. The actual margin depends on local retail pricing power, competitive intensity, and wholesale cost set by Greaves. After-sales service and genuine parts carry higher margins and serve as a secondary revenue buffer, particularly as the customer base matures.
Is the Ampere (Greaves) dealership model suited for first-time franchise operators?
Yes, but with caveats. The 0% royalty and lean ₹25 lakh capex reduce financial entry barriers, and 5 days of training provide foundational knowledge. However, automotive retail requires active owner involvement, capital discipline in inventory management, and local market understanding. Success depends more on your ability to execute sales and service operations than on brand leverage alone, as dealer profitability is determined by wholesale pricing, local competition, and customer retention.
What is the franchise agreement term for an Ampere (Greaves) dealership?
The franchise agreement has a 3-year expiry policy. This term is standard for automotive dealership relationships in India and allows both parties to review performance, market conditions, and strategic alignment at renewal. Renewal terms, performance conditions, and territory adjustments are negotiated at expiry.
How does seasonality affect Ampere (Greaves) franchise revenue?
Electric two-wheeler sales follow seasonal patterns: urban commuting demand peaks during monsoon and post-monsoon months, while rural markets see spikes tied to harvest cycles and bonus seasons. Service revenue is steadier if the franchisee builds strong customer ownership density and retention. New-vehicle sales carry higher volatility, so franchisees should plan working capital to absorb seasonal cash flow swings, particularly in the first 12–18 months.
Are there any licensed professionals required to operate an Ampere (Greaves) dealership?
No specific licensed professional is mandated to operate an Ampere (Greaves) dealership. However, you must employ qualified service technicians for vehicle maintenance and repairs, and your sales staff should have basic product knowledge and sales compliance training. Greaves provides training frameworks, but operational hiring and team management are your responsibility as owner.
