Passenger car and utility vehicle dealerships can boost profitability by shoring up their workshop revenues, an analysis of over 100 such small and medium enterprises rated by CRISIL indicates.
Commission on showroom sales from original equipment manufacturers or OEMs (i.e. car-makers) and workshop revenues are the two main revenue streams for these dealerships. Showroom sales commission includes dealer commission on vehicle sales, finance payouts, insurance and registration commissions, while the workshop revenues comprise general servicing and sale of accessories/ spare parts.