Business Plan for Tata Truck Dealership in India

India Truck Industry, also known as Road Goods Transport Industry (RGTI) or Indian trucking industry, has played a major role in the Indian trade and commerce for the decades. Along with railways, Indian truck industry has also played an instrumental role in moving goods form one part of the country to another. From 1950-51 to 1990-91, the truck industry in India has seen a growth rate of 7.2%. Currently, there are more than 1300 trucks per million population, whereas the utilization of trucks is more than 70,000 kms per annum. The reason behind the success of India truck industry is the added advantages of road transport over the railways. Trucks can accept goods in small quantities, can reach rural and hill areas, and also require less time than the rail for loading and unloading of goods. As a result, India truck industry cemented its place in goods transportation. With passage of time, truck industry in India has involved a good number of Indian automobile giants including Tata Motors, Hindustan Motors, Ashok Leyland, Mahindra and Mahindra, Force Motors, Swaraj Mazda, Eicher etc.

Truck dealers play an important intermediary role in the promotion of brand equity and sale of a particular brand of Truck. In the process, they build up the reputation and contribute towards the growth of the company's market share. In India, the role of Truck dealers was limited to a mere selling of Truck that has undergone a substantial change in the recent times with

dealers emerging as an important point of connect between the company and the customers for the Truck. Truck dealers of todays are expected to act as a catalyst to promote the sales of a Truck. At the first instance, Truck dealers are to have a good collection of Truck. Truck dealership depends on availability of the brand new Truck and the location of the showroom. Depending upon the brand and type of Truck, dealer location ensures that the potential customers get the best of strategic advantages. The ambiance and the customer service are equally important. The customer should feel welcome at the Truck dealers place and the more a Truck dealer is able to generate that sort of feelings among his potential customers, the likelihood of Truck sales is to increase.

People: Total staff required is 43 the division is given below:

1.) Sales Staff (10)

2.) Marketing Staff (5)

3.) IT Person (4)

4.) HR Person (2)

5.) Truck Driver (5)

6.) Front Office staff (5)

.7.)Truck Mechanic (6)

8.) Admin (2)

9.) Security Guard (4)

Opportunity:

Truck dealership here means selling or trading of Trucks for profit. It is different from being a salesman or an employee of a particular company and working by commission.

We can become a Truck dealer by owning a local franchise to sell Trucks in your area. As a franchiser you are protected by franchise laws regarding competition with the franchiser and against abuses such as abrupt closure when a Truck manufacturer decides to phase out some models. New Truck dealers don’t get as much cut for the sales they make and so they often extend their income generating potential by repairing and maintaining old Trucks. The industry touts an average of close to $200,000 yearly in profits for selling less than five Trucks a week.

Getting a Truck Distributor License

If you go the other way, you can enter into this trade by selling or brokering the sale of used Trucks. Usually, independent Truck dealers start as sales people for a Truck dealer. Then they rent a lot to display used Trucks for sale. The most discussed subject in this area is obtaining a Truck dealer license. A dealer license allows the holder to buy used Trucks in wholesale or new Trucks with closed bids. You can find plenty of resources in the Internet to help you get a Truck dealer license. To ensure you are getting the right information, go to the Web site of your state Department of Motor Vehicles.

Context:

Website Context

Contextually relevant advertisements can help automotive dealers to better target the potential customers as they are willingly showing interest by viewing specific themed areas. Automotive dealers can effectively target those customers searching for new cars, pre-owned cars etc on Internet by positioning advertisement based on website context. Also, the website viewers are likely to respond positively or pay more attention to such theme related advertisements.

Effectively Target Customers

One of the key benefits of online display advertisements is that automotive dealers can effectively target potential customers within their advertisement budget. Display advertisements provide a better coverage and effective targeting of potential customers as they can be based on website context, geographic location of buyer, variety of demographic information, and user behavioral information.

Provides Good ROI

Apart from targeting specific segment of customers, online display advertising increases online traffic and increases the chances of sale thereby provides a good Returns On Investment (ROI). Also, display advertisement effectively targets desired customer segment thereby reducing the ad spend wasted due to

unwanted and ineffective impressions thus maximizing the ROI. Display advertisement facilitates tracking of display advertisement campaign by automotive dealers through metrics like clicks and conversions, impressions to better calculate the ROI.

Risk Involved:

Risk:

Different Competitors with different pricing strategy involved in Similar Business.

More Credit in Market then product.

ROI is less.

Market Risk involved with Banks:

First some Truck dealerships have relationships with banks. The Truck dealership either owns the bank or vice versa. In some cases we just find that they deal with only ten banks. In any of the cases listed you will find that it may benefit you to look for your own loan through a bank first before approaching the dealer. The dealership can always give you an estimate for a Truck loan through them and you can compare the offers. You don't have to sign for any Truck loan until you have actually done all of the research that makes you comfortable.

For instance you may find due to the relationship with the Truck dealership the interest rate is actually a little lower for their customers. In some cases you may find that your bank offers a better interest rate because you have banked with them for over ten years. The idea behind Truck financing for any company is to calculate the risk the customer poses for that loan. In other words if you are someone with a short credit history, but it is in excellent shape you are going to pose a certain amount of risk based on the lack of data in the banks mind for both the direct loan and the Truck dealership loan. On the other hand if you have worked really hard on your credit score to make sure it is always in excellent shape you will have a lower interest rate overall because the risk you pose is deemed lower.

Really it is not an argument of which place you should get your loan through such as a bank or going through the Truck dealership, but what is going to be the fairest deal. You have to do a lot of research to make sure you are getting the best deals based on your credit scores, income, and other factors. You will find that some places such as online Truck financing are not always truthful about your actual credit scores. In fact some may fudge the numbers a little. It is important to know your own data first before ever speaking with an individual or company about a loan. This way you can have the best Truck financing that is possible for you and not for the bank.