Toyota Dealership Model

1 average sales witnessed by a Toyota dealer

Number of units sold /
Sr. No. Models Month Price
1 Pradoo 1 3,000,000
2 Fortunerr 12 2,200,000
3 Camryy 1 2,000,000
4 Corollaa 10 1,200,000
5 Innovaa 50 1,000,000
6 Etioss 50 700,000
7 sales growth per annum
8 No. of months in a financial year

2. Space Requirement
1 Showroom Sq.ft. 15000
2 Godown Sq.ft. 30000

3. Rent for space

1 showroom rent Sq.ft./month 150
2 Month deposit require for showroom No. of months 6
3 Godown rent Sq.ft./month 30
4 Month deposit require for godown No. of months 6
5 Expenses for renovating the premise 2500000
6 Annual maintenance expenses on revenue 15%

4. Staff requirement
Sr. No. Staff Nos Salaries per month
1 Manager 1 35000
2 Sales personnel 3 25000
3 Admin 2 20000
4 Godown 3 12000
5 annual increments on staff salaries 10%

1 Debt equity ratio provided by bank 1

2 Equity 0.5
3 Debt 0.5
4 Loan repayment period years 5
5 Rate of interest on loan p.a. 13%
6 tax on profit 35%
7 Alternative dealership investment return 20%

Scenario 1
sales growth 7%
8%
 9%
10%
11%
12%
13%
Commission (%)
4%
4%
4%
3%
3%
2.50%
10%
12
 Working of expense forec
1. Annual sales forecast in units
Sr. No. Model Year 1
1 Pradoo units 12
2 Fortuner units 144
3 Camryy units 12
4 Corollaa units 120
5 Innovaa units 600
6 Etioss units 600

2. Annual sales forecast in value

Sr. No. Model Price/unit Year 1
1 Pradoo 3,000,000 ₹ 36,000,000
2 Fortuner 2,200,000 ₹ 316,800,000
3 Camryy 2,000,000 ₹ 24,000,000
4 Corollaa 1,200,000 ₹ 144,000,000
5 Innovaa 1,000,000 ₹ 600,000,000
6 Etioss 700,000 ₹ 420,000,000
7 Total sales value of the year ₹ 1,540,800,000

3. Commision forecast
Sr. No. Model Commision in % Year 1
1 Pradoo 4% ₹ 1,440,000
2 Fortuner 4% ₹ 12,672,000
3 Camryy 4% ₹ 960,000
4 Corollaa 3% ₹ 4,320,000
5 Innovaa 3% ₹ 18,000,000
6 Etioss 2.5% ₹ 10,500,000
Total commision receive
7 (Gross revenue) ₹ 47,892,000

4. Rental annual expense forecast

Sr. No. Particulars Rs./Sq.ft. Year 1
1 Showroom 150 ₹ 27,000,000
2 Godown 30 ₹ 10,800,000
3 Total rental expense for the year ₹ 37,800,000

5. Annual Maintenance expense forecast

Sr. No. Particulars % on revenue Year 1
1 Maintenance charges 15% ₹ 7,183,800

6. Staff expense forecast

Sr. No. Particulars Year 1
1 Manager ₹ 420,000
2 Sales personnel ₹ 900,000
3 Admin ₹ 480,000
4 Godown ₹ 432,000
5 Total staff expenses ₹ 2,232,000

7. One time investment in the initial year

Sr. No. Particulars Year 1
1 Deposit for showroom ₹ 13,500,000
2 Deposit for Godown ₹ 5,400,000
3 Intial renovation expenses ₹ 2,500,000
4 Total Initial investment required ₹ 21,400,000
5 Own funding ₹ 10,700,000
6 Debt funding ₹ 10,700,000
7 Total ₹ 21,400,000
8 Interest on debt funding ₹ 1,391,000
expense forecast

Year 2 Year 3 Year 4 Year 5

13 15 16 18
158 174 192 211
13 15 16 18
132 145 160 176
660 726 799 878
660 726 799 878

Year 2 Year 3 Year 4 Year 5

₹ 39,600,000 ₹ 43,560,000 ₹ 47,916,000 ₹ 52,707,600
₹ 348,480,000 ₹ 383,328,000 ₹ 421,660,800 ₹ 463,826,880
₹ 26,400,000 ₹ 29,040,000 ₹ 31,944,000 ₹ 35,138,400
₹ 158,400,000 ₹ 174,240,000 ₹ 191,664,000 ₹ 210,830,400
₹ 660,000,000 ₹ 726,000,000 ₹ 798,600,000 ₹ 878,460,000
₹ 462,000,000 ₹ 508,200,000 ₹ 559,020,000 ₹ 614,922,000
₹ 1,694,880,000 ₹ 1,864,368,000 ₹ 2,050,804,800 ₹ 2,255,885,280

Year 2 Year 3 Year 4 Year 5

₹ 1,584,000 ₹ 1,742,400 ₹ 1,916,640 ₹ 2,108,304
₹ 13,939,200 ₹ 15,333,120 ₹ 16,866,432 ₹ 18,553,075
₹ 1,056,000 ₹ 1,161,600 ₹ 1,277,760 ₹ 1,405,536
₹ 4,752,000 ₹ 5,227,200 ₹ 5,749,920 ₹ 6,324,912
₹ 19,800,000 ₹ 21,780,000 ₹ 23,958,000 ₹ 26,353,800
₹ 11,550,000 ₹ 12,705,000 ₹ 13,975,500 ₹ 15,373,050

₹ 52,681,200 ₹ 57,949,320 ₹ 63,744,252 ₹ 70,118,677

Year 2 Year 3 Year 4 Year 5

₹ 27,000,000 ₹ 27,000,000 ₹ 27,000,000 ₹ 27,000,000
₹ 10,800,000 ₹ 10,800,000 ₹ 10,800,000 ₹ 10,800,000
₹ 37,800,000 ₹ 37,800,000 ₹ 37,800,000 ₹ 37,800,000

Year 2 Year 3 Year 4 Year 5

₹ 7,902,180 ₹ 8,692,398 ₹ 9,561,638 ₹ 10,517,802
 Year 2 Year 3 Year 4 Year 5
₹ 462,000 ₹ 508,200 ₹ 559,020 ₹ 614,922
₹ 990,000 ₹ 1,089,000 ₹ 1,197,900 ₹ 1,317,690
₹ 528,000 ₹ 580,800 ₹ 638,880 ₹ 702,768
₹ 475,200 ₹ 522,720 ₹ 574,992 ₹ 632,491
₹ 2,455,200 ₹ 2,700,720 ₹ 2,970,792 ₹ 3,267,871

Year 2 Year 3 Year 4 Year 5

₹ 1,391,000 ₹ 1,391,000 ₹ 1,391,000 ₹ 1,391,000

 Franchise model of Toyota dealers
1. Profit & Loss account
Sr. No. Particulars Year 1
1 Income
2 Revenue ₹ 47,892,000
3 Expenditure
4 Rent - Showroom ₹ 27,000,000
5 Rent - Godown ₹ 10,800,000
6 Staff salaries ₹ 2,232,000
7 operational maintenance ₹ 7,183,800
8 Total operating Cost ₹ 47,215,800
9 Operating Profit (EBIT) ₹ 676,200
10 Interest expense ₹ 1,391,000
11 EBT ₹ -714,800
12 Tax @ 35% ₹0
13 EAT ₹ -714,800

2. Cash flow statement

Sr. No. Particulars Year 1
1 Inflows:
2 Debt borrowings ₹ 10,700,000
3 Equity funding ₹ 10,700,000
4 Profit of the year ₹ -714,800
5 Refund of Deposits (end of 5 years)
6 Total inflow ₹ -714,800
7 Outflows:
8 Deposit for showroom ₹ 13,500,000
9 Deposit for godown ₹ 5,400,000
10 Initial renovation expenses ₹ 2,500,000
11 Repayment of loan
12 Total outflow ₹ 21,400,000 ₹0
13 Invesment vs return ₹ -10,700,000 ₹ -714,800
14 IRR on investment 30%
ACCEPTED
model of Toyota dealership

Year 2 Year 3 Year 4 Year 5

₹ 52,681,200 ₹ 57,949,320 ₹ 63,744,252 ₹ 70,118,677

₹ 27,000,000 ₹ 27,000,000 ₹ 27,000,000 ₹ 27,000,000

₹ 10,800,000 ₹ 10,800,000 ₹ 10,800,000 ₹ 10,800,000
₹ 2,455,200 ₹ 2,700,720 ₹ 2,970,792 ₹ 3,267,871
₹ 7,902,180 ₹ 8,692,398 ₹ 9,561,638 ₹ 10,517,802
₹ 48,157,380 ₹ 49,193,118 ₹ 50,332,430 ₹ 51,585,673
₹ 4,523,820 ₹ 8,756,202 ₹ 13,411,822 ₹ 18,533,004
₹ 1,391,000 ₹ 1,391,000 ₹ 1,391,000 ₹ 1,391,000
₹ 3,132,820 ₹ 7,365,202 ₹ 12,020,822 ₹ 17,142,004
₹ 1,096,487 ₹ 2,577,821 ₹ 4,207,288 ₹ 5,999,702
₹ 2,036,333 ₹ 4,787,381 ₹ 7,813,534 ₹ 11,142,303

Year 2 Year 3 Year 4 Year 5

₹ 2,036,333 ₹ 4,787,381 ₹ 7,813,534 ₹ 11,142,303

₹ 18,900,000
₹ 2,036,333 ₹ 4,787,381 ₹ 7,813,534 ₹ 30,042,303

₹ 10,700,000
₹0 ₹0 ₹0 ₹ 10,700,000
₹ 2,036,333 ₹ 4,787,381 ₹ 7,813,534 ₹ 19,342,303