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Dealer Faq

FAQ

01. What are Electric Scooters? What are the different types of Electric Scooters?

An electric motorcycle is powered by an electric motor instead of a petrol engine. The electric motorcycle uses energy stored in its batteries, which are recharged by common household electricity.

There are two variants of electric motorcycles available:

  1. Low-speed variants: The low-speed variant of electric motorcycles have a maximum speed of 25 kmph. Most vehicles currently available in India fall under this category.
  2. High-speed variants: The high-speed variant of electric motorcycles have a top speed of more than 25 kmph and can go up to 80 kmph.

02. Is there a market for Electric vehicles in India?

Yes, there is a growing demand for electric vehicles in the ever-growing middle class population of India. At the urbanization rate of 26.7% and a population of 1.3 Billion, the urban population is growing by the day and there is a great demand for two vehicles for daily commute.

Further, most of India’s oil demands are fulfilled by imports. This increases India’s dependency on other nations for mobility. There is an immediate requirement to decrease the dependency on oil and the best way to move In this direction is the adoption of Electric Vehicles.

 

The per capita GDP of India is $2100, which makes it a country more suitable for two-wheelers rather than four-wheelers. The rapid urbanisation is another factor for the need of a low-cost and reliable vehicle for daily commute.The per kilometre cost of operating and maintaining an Electric Vehicle is far more economical than its traditional counterparts.

 

Vehicles running on fossil fuels have a deep negative impact on the environment. Reversing climate change is the need of the hour and adoption to EVs is a significant step in this direction.

03. What is the current state of the Electric Scooter industry in India?

Manufacturers in India have two options:

Either they assemble vehicles from parts manufactured in bulk or they invest in developing and sourcing high quality parts to build superior vehicles.

 

In the first category of vehicles the price is on the lower end of the spectrum but the quality is compromised, however in the latter case, the product is of superior quality, but the increased cost make it unaffordable for the daily commuter.

 

A few manufacturers of fuel-based vehicles have ventured into the EV market and are in the process of evolving home-grown EV products and shaping the industry.

04. What type of manufaturer is Dao?

There is a small set of companies who fall into another category of EV manufacturers. These are the companies striving to find a balance between the cost of the vehicle and delivering a premium quality product.

 

Dao is one such manufacturer. We achieve the balance between cost and quality by bringing together the best in technology, R&D, service and manufacturing, from around the globe.

 

China leads the world in electronics manufacturing and production, USA leads the world in innovation, R&D and service, and India proudly leads the world in software industry and core components of vehicles like chassis and rims.

 

Dao brings together these three verticals together to deliver the best products to the Indian consumer. The result is an advanced, high quality, smart mobility solution which also makes the Earth a greener place.

 

Here is a look at our first Electric Scooter:

05.Can you elaborate on DAO?

Dao is an Indian tech startup based out of Pune. We are a global team of experts with vast experience and knowledge in different segments from multiple countries. We have come together to bring Indian customers the best products and services, foster entrepreneurship and to mature the EV ecosystem in India.

Dao is backed by over 20 years of industrial experience in producing Electric Vehicles from China along with innovation, R&D and customer service from USA. Dao doesn’t just import critical components from China, but also the expertise that comes with it.

With our technology and services infrastructure, we possess the capacity to provide a reliable product and excellent customer satisfaction for the long-term.

06.How does one choose the right Dealership brand for electric two-wheelers?

Before deciding the electric two-wheeler company for which you want to get a dealership, find out about the product they are offering and see if it fits in with the kind of product you are looking for.

Most EV manufacturers (around 70% OEMs) make low-speed products that are mass-produced and sourced from China. As such companies do not spend on R&D, it results in a market filled with similar products. The government regulations (from agencies like ARAI and ICAT) for low-speed vehicles is very liberal.

Here is a checklist of questions that will help in selecting the right brand to partner with.

  • For high-speed vehicles (over 25 kmph), does the Company provide vehicles with a top speed of over 70 kmph, and a range of over 100 kms?
  • Does the OEM have their internal R&D department?
  • Where does the vehicle Manufacturer source their battery from?
  • What kind of Warranty is being provided on the battery and vehicles?
  • What kind of certifications and external reports are presented by the manufacturer to back their claims of range, speed and warranty?
  • What kind of services does the EV Manufacturer providing to the customer?
  • Does the OEM provide Technical and Marketing services to their dealers?
  • Does the EV Manufacturer provide CRM services and employee training programs for the dealer?

07.What is the process for applying for a dealership at DAO?

We follow very easy and simple procedures to welcome members to Dao Dealers family.

  1. Preliminary Application Form : To begin the process, Dealers have to fill up a form with personal details, educational background and work experience among other things. This will help us know you better before we proceed further.
  2. Visit the Flagship store (For Tier 1 cities)or the nearest venue for the upcoming event (For Tier 2 and 3 cities) in your city for a test-ride and get to experience the product. You can also find out about details on ROI, investment and customer experience.
  3. Make a visit to the Factory along with other potential Dealers.
  4. Identify a suitable location for your future Dao Dealership.
  5. Once the location is finalised, due diligence is carried out by Dao and applicants need to await approval from the different verticals (Finance, Legal, Operations, Marketing).
  6. Dao design team guides and inspects the Showroom and Workshop readiness as per SI guidebook.
  7. Dealers are required to submit working capital for vehicles, spares, kits etc.
  8. Once the Showroom is ready and stocked with products and other equipment, a dealership agreement is issued.
  9. CRM personnel, Technicians and Customer service experts from Dao provide training to the Sales and Service staff. Sales KPIs are defined.
  10. Dealership operations commence.

Our Dealer support team will in touch with you during the entire process.

 

08.How does one choose Dealership location and how do we work with Dao on store interior decoration?

We understand that selecting a location for your dealership is a difficult and time consuming. Store traffic and sales are heavily affected by the store location. In order to optimise your dealership and ensure an abundance of buyers, our team of analysts and market research specialists will do a feasibility study at your preferred location in the city or locality.

We have documented a very detailed SI guidebook to help you follow the design aesthetics that ensure that the Showroom looks exactly like the Guidebook, down to the last detail.

For Dealers who wish to delegate the design process, we also have a provision of providing the entire interior design and decoration done by our contractors as per the SI guidebook.

09.What is the expected ROI and in how many years can the inverstment be recouped?

Most automakers provide a lower margin, this makes Dealers dependent on income from service and repair costs which means it takes a longer time to recoup  investment.

On the other hand, Dao provides a higher margin which ensures a quick ROI and smaller time to recoup the investment (around 2 – 3 years*). In the unlikely situation of the Dealer not being able to sell the products within 6 months, Dao will buy it back at purchase price.

Interest will be provided on the business deposit after 3 years.

10.How many Dealers will there be in a town?

At Dao, we believe in creating strong lasting relations with our Dealers. In order to do so, we ensure that they maintain good sales figures throughout the year.
We also want to make sure that our customers can locate a dealership in proximty  to their residence.

Being data driven and technology driven, we use data-driven research to undertand the requirements of a city/locality when it comes to the number of Dealers needed and their ideal location.

11.What kind of support program does Dao offer Dealers?

Our Dealer-centric sales approach shows that we provide a robust support program to all our Dealers.

Unlike other OEMs in the market, we don’t only provide an Area Manager for assistance, instead we have an entire team of Tech and Marketing experts who support all your requirements.

We believe in optimising every step of the process to get the best results for our Dealers. The Dao Entrust program is a combination of tools, methodologies and processes, which make it easier to implement every stage of the process with a much smaller workforce without compromising on efficiency.

Dao Entrust decreases the reliability on a team of managers for every department. This, in turn lowers the operational  cost of the Dealership. We developed Dao Entrust while keeping in mind that some Dealers would want to continue with their main commitments and would want a reliable system which runs smoothly in their absence.

We equip our dealers with world class CRM software and train Dealership personnel to be well-versed in it with the support of experts in customer service.

Our dealer handbook and FAQs bank comes in handy for clearing any questions that might arise. However, if your questions remain unanswered, we have a Dealer support team at our corporate offices who will be happy to help.

12.What kind advertising and brand building support does Dao offer?

At Dao, we have a team of expert marketers in-house who help build Dao as a brand and promote Dealerships in their communities. Right from the store branding and interior to the Dealership’s online presence and local advertising campaigns (online and offline) we will make sure that they are executed properly as per guidelines, so that you can grow your sales.

We will also be investing in smart ATL advertisement placements in OTTs and relevant locations  to capture the attention of prospective customers and thus build a 360 degree brand presence throughout India.

Most of our Marketing efforts will be towards targeted placements and Digital Advertising. We are a company of the future and all our strategies correspond to that objective.

The CRM software provided by Dao will be a huge contributor in maintaining lasting customer relationships.

13.What is the OEM financial support provided?

Fintech in India is evolving rapidly and we are working closely with our FinTech partner Zestmoney to provide Dealers with required financial support.

How is this different from other loan application processes?

  1. You don’t have to spend hours just to apply for a loan and check eligibility, it will be done in minutes.
  2. The entire process is digital, which means it can be done from the comfort of your sofa.
  3. The loan disbursal is faster than traditional methods.
  4. Traditional banks review fixed assets for collateral against loans, but modern Fintech companies consider cash-flow of your business and turnaround time.
  5. The interest rates and payment timelines are very liberal for modern Fintech as compared to traditional banks.

14.Does Dao have a technical support program and will technicians be trained?

Dao provides training across all the verticals in a Dealership. Our expert technicians from China will train the service team and the customer support team will be trained by the experts from USA.

15.Can Dao dealers manage co-brand stores and co-sales with other brands?

No, we do not prefer our Dealers to manage co-brand stores. We want to work with exclusivity. Every detail in the SI guidebook is designed around our products and any other product might hamper the aesthetics that we expect from a Dao dealership.

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