How to Start a Hyundai Dealership in India? A Car that Takes You Far

Cars have become a necessity in our lives. Owning and driving a car has become important as the car provides status to its owner. It gives one person control over the vehicle. The car helps in covering long distances with ease and comfort. In places where public transport facility is not good or available, a car becomes the medium to travel distances. For older people, the car gives them the independence of mobility. For the youth, the car is medium to bring friends together and have fun. Cars make our lives easier in many ways.

The first car hit the Indian road was in the year 1897. Ever since the automotive industry has only grown and evolved in the country. Hyundai Motors came to India in the year 1996. At that time many car brands were already selling in the market. Hyundai was an unknown name in the country. With its first car launch, Hyundai created a name and space for itself in the Indian market.

History of Hyundai

hyundai dealership

Hyundai Motor Company is a car manufacturing company with its head office in Seoul, Soth Korea. The company was founded in the year 1967 by Chung Ju-Yung who previously ran a construction business.  The company slowly started to spread its operation in different parts of the world.

Hyundai Motors entered India in the year 1996. When the brand entered the Indian territories, the company’s name was not known to anyone in the country. Hyundai India’s first car, Hyundai Santro was launched in 1998. The tagline associated with the car “The Sunshine Car” became an instant hit in the public.

Hyundai India is a fully owned subsidiary of Hyundai Motor Company. Hyundai has its headquarters in Chennai, Tamil Nadu. Hyundai has 2 manufacturing units in Kancheepuram and one near Chennai.

The company is making India the base of small car production globally. 

Hyundai Dealership USP

Hyundai India is the second-largest car manufacturer and the number one car exporter in the country. An unknown brand in the country, Hyundai created a place for itself in the hearts of the Indians with the launch of its first car Santro. Hyundai uses the best and safest technology in its cars. The company has become a name that one can rely on. For the last 7 years, Hyundai has remained the country’s top exporter of cars.

In 2013, Hyundai Elantra Won the ‘Best Design and Styling’ Award at ‘Bloomberg UTV Auto Car India 2013’, ‘Saloon Car of the Year’ Award at ‘Bloomberg UTV Auto Car India 2013’, ‘Car of the Year’ Award at ‘Car India & Bike India Awards 2013’, ‘CNB Viewers’ Choice Car of the Year’ award at ‘NDTV Car & Bike Awards 2013’.

Hyundai is currently exporting cars to 88 countries across Africa, Middle East, Latin America, Australia, and the Asia Pacific. The company is rapidly expanding in both name and size. It has become an integral part of the Indian market.

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Benefits of owning a Hyundai Dealership

Brand Name

Hyundai is a Korean company. But over the years, due to company’s work and efforts, Hyundai is assumed to be an Indian company by the people.

Saleable Brand

Hyundai is India’s second most purchased brand in cars.

Car Exporter

Hyundai India is Asian market’s largest car exporter. The company has shown a consistent growth at 10%.

Number of Car Models

Hyundai India manufactures all the cars locally. The company is currently selling 9 different cars in the country.  The cars are Hyundai Santro, Hyundai i10, Hyundai Grand i10, Hyundai Xcent, Hyundai i20 Active, Hyundai 4S Fluidic Verna, Hyundai Elantra, Hyundai Creta and Hyundai Tucson.


Hyundai India is the only car manufacturing company in India which takes it Corporate Social Responsibility very seriously.


Hyundai India is a subsidiary of Hyundai. Hyundai is a Korean company. The cars manufactured by Hyundai have latest technology. All the cars made have to comply with the set international standards.

Global Name

Hyundai is a globally renowned organization. The company sells its cars in countries like South Korea, China, USA, Canada, Mexico, Brazil, Turkey and Japan.

What are the requirements to start a Hyundai Dealership in India?


The total area required to start Hyundai Dealership is 4000 square feet. The area must be located such that it is easily locatable by the customers. It should be easily accessible. The area must accommodate space for a big display area for the cars, working area for the people employed, and parking space for the cars to be sold.

The showroom must have a clean and presentable reception area for the customers. A designated office area is also required. The showroom must be located on the ground floor. The company provides the guidelines to set up the showroom. The showroom must contain a walk in service location. There must be a designated workshop area for all the repairs, storage of spare parts and incoming vehicles for repair. The showroom must be located in a commercial area.

Skills or Experience

The company is looking for franchise partners who have previous experience in the automotive workshop business. The company requires the audited financial records of the franchisee. The franchisee must the standard set by Hyundai all the time.  

Regions of Operation

Hyundai India has 449 dealers and more than 1,150 service stations all across India. Hyundai has its headquarters in Chennai, Tamil Nadu. Hyundai has 2 manufacturing units in Kancheepuram and one near Chennai. Its research and development facility is located in Hyderabad, Telangana. The company wants to expand in the states of Jammu and Kashmir, Delhi, Punjab, Haryana, Uttar Pradesh, Himachal Pradesh and Uttranchal in the northern parts of the country.

In the south, the company is targeting the states of Kerala, Karnataka, Tamil Nadu, and Telangana. In east India the company wants to focus on West Bengal, Bihar, Jharkhand and in the northeast, it wants to expand its network in all the seven sisters. In the west, the company wants to expand in Maharashtra, Goa, Gujarat, and Rajasthan. Madhya Pradesh and Chattisgarh are the targets in central India. The company also plans on expanding in all the Union Territories.


The company provides all the interior designing inputs for the showroom to the dealer. It also provides inputs on the construction. It helps in the site selection. The company gives its full attention to help the franchise partner with marketing and advertising. Proper technical knowledge and training is given to all the employees. Guidelines on administration are set out by the company. Guidance and assistance are always available to the franchise partner. The company also gives full IT support.

Staff Requirement

Manager, Sales Coordinator, sales consultant, technicians, supervisor, workshop manager, service advisor, salespersons, and store in charge are the manpower required to run and manage a dealership showroom. In addition, maintenance staff is also required.

How much does a Hyundai Dealership cost?


Starting a Hyundai dealership in any big city in India will cost around INR 25 crores. INR 12 crores to INR 15 crores is required the cost of brand fees, rent of the dealership showroom and the cost of procurement of vehicles. INR 5 crores will be needed as the cost for interiors, gadgets and any required construction. INR 5 crores is needed to pay salaries to the staff and for maintenance.

All the payment for the procurement of goods is to be fully paid in advance.

Years of bond and profitability

The return on investment is estimated between 3 years to 5 years. The exact percentage cannot be estimated. The number of years on returns depends on factors like location of the store, city, sale strategies and promotion of the showroom. The company signs a standard franchise agreement with the franchisee. The contract can be renewed on expiration. Renewal depends on the discretion of the company.


Owning a car has become important and necessary in today’s world. Cars have become a lifeline for many people. Car not only makes our lives easy but they also make traveling very convenient.

Hyundai Motors, a South Korean company came to India in the year 1996. The company set up its head office in Chennai and started a manufacturing unit near the city of Chennai. In 1998 the company launched its first car, Hyundai Santro. With the launch of this car, the company formally launched itself in the Indian market and the hearts of the people. Every second person wanted to own a Santro. It was the people’s dream car.

The company is still driving the dreams of the people and has been successfully producing and selling cars in the country. Today, Hyundai is India’s second most loved brand in cars. Hyundai India is the largest exporter of cars in the Asian market. Hyundai is currently exporting cars to 88 countries across Africa, Middle East, Latin America, Australia, and the Asia Pacific.

Hyundai enters into franchise deals with people to expand its business. The company wants to be present in every city in the country.

To start a franchise showroom of Hyundai total area of 4000 square feet is required. An initial investment of INR 25 crores is needed. The company helps in setting up the showroom. It trains the staff about all the things related to cars. The return on investment is estimated between 3 years to 5 years. The company signs a standard franchise agreement with the franchisee. The contract can be renewed on expiration.

Hyundai is a reputed name globally and is a company worth investing in.

1 thought on “How to Start a Hyundai Dealership in India? A Car that Takes You Far”

  1. The green light for imports in the 1990s was the moment of landing of the South Korean brand in Brazil. Later, in 1999, Hyundai was managed by the CAOA Group, which envisioned a grand future. The goal was a 10% share of the automotive market, which would establish the brand as one of the big four – Chevrolet, Fiat, Ford and Volkswagen at that time. Check out 5 reasons that certify the reliability of Hyundai cars.

    Presence in Brazil
    The 6 years following the control of the CAOA Group (1999) were marked by a policy of identity reformulation. Much confidence was built with the Brazilian consumer, who would now adopt the brand cars without caveats. Remember that distrust was quite common in the 1990s with brand new brands such as South Korean Hyundai and Kia.

    Opinion of who drives a Hyundai
    Nothing better as a customer satisfaction thermometer than his own opinion. Hyundai makes it clear that it delivers state-of-the-art service when observing, in established forums, the sincere notes and opinions given to its models. As an example, we mention two models that day by day perpetuate the success of the brand in the country: the Crete SUV – 9.2 iCarros and 9.08 CarrosnaWeb – and the hatchet HB20 – 8.4 iCarros and 8.27 CarrosnaWeb.

    Few Defects = Cheap Insurance
    The HB20 is on the list of “10 Cheapest Insurance Cars in Brazil”. Position achieved by ease of maintenance and access to parts. In addition, Hyundai cars are unlikely to be defective. This positively implies when it comes to quoting insurance. The average insurance value of HB20 is calculated at R $ 1,600, which may vary according to the insured’s profile.

    International Rankings
    Hyundai is above all a global brand. Therefore, its recognition in international quality parameters reflects in the products offered here.

    Consumer Reports
    It is an independent US institution that bases its research on subscriber ratings. In the “Most Reliable Automotive Brands of 2017” ranking, Hyundai is in 10th place. Solid position if we consider that two of South Korea’s direct competitors in Brazil – Ford and Volkswagen – occupy the 15th and 16th position respectively.

    J.D. Power
    It is an independent US organization that aims to filter customer satisfaction. Here, Hyundai was ranked first in the “2017 Aftermarket Satisfaction” ranking, beating Toyota, which consecutively led the 2015 and 2016 editions.

    Word of mouth marketing
    This is the quality screen you have probably witnessed. This happens when a friend comments positively on the versatility of the HB20, or the pleasurable handling of Crete. This is because, since the beginning of the millennium, Hyundai has reinvented the way it communicates with the customer. Whether in the bold design that conveys current and status or in the respect and good treatment offered by dealers.

    Achieving 10% in 2016, beating Ford and winning one of the top 4, was the market achievement that crowned Hyundai as a trusted brand, moving away from the shadow of the 1990s.

    It’s really amazing the journey of Hyundai cars in search of consumer respect, don’t you think? Just as in personal life, good repute and hard work made a little known brand win the hearts and garages of Brazilians.

    Are you considering buying a Hyundai? Contact us and request a quote. Fazza will be delighted to help you choose the Hyundai of your dreams.

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