Tyre and battery dealers: sizes, warranty claims and fleets

How the trade is structured

Tyre and battery companies appoint dealers, often through distributors for smaller towns. Dealers stock tyres for two-wheelers, cars, commercial vehicles and tractors, and batteries for vehicles and inverters. Many also run a service bay: tyre fitting, wheel balancing and alignment, puncture repair, battery charging and testing. Payment to the company is typically on fixed terms, with schemes linked to volume and to particular product lines.

Customers are private vehicle owners, mechanics and garages, transporters and fleet owners, farmers, and for inverter batteries, households and shops. Fleets and transporters buy in bulk and expect credit; walk-in customers pay on the spot.

Sizes, ratings and stock

A tyre is identified by its size code, construction, load index and speed rating, plus tube-type or tubeless. A battery by its capacity, terminal layout and application. The combinations run into hundreds, and stocking all of them is impossible. Keep the most common sizes for your area deep, hold a few of the rest, and order others from the distributor on demand.

Tyres also age: rubber deteriorates with time even unused, and customers sometimes check the manufacturing date code. Rotate stock so older tyres sell first. Batteries lose charge on the shelf and must be checked and charged periodically. See reorder levels and safety stock for deciding how many of each size to keep.

Inverter batteries and home customers

Inverter batteries and home inverters are a separate line for many battery dealers, sold to households, shops and small offices. Demand rises with summer and in areas with frequent power cuts. These sales often include delivery, installation and a later service visit to top up distilled water or check the charge, and customers call the dealer, not the company, when backup time drops.

Record installation as part of the sale or as a separate service line, keep the customer's address and installation date, and offer a paid maintenance visit after the free period. A household that is looked after well comes back for the replacement battery a few years later, and refers neighbours. For the replacement, the old battery exchange works the same way as for vehicle batteries.

Old battery exchange

Most battery sales involve taking back the old battery, which has a scrap value. The customer gets a discount, and the dealer later sells the scrap batteries to an authorised recycler or returns them under the company's scheme. Lead-acid batteries are covered by specific rules for collection and recycling, so use authorised channels.

Figures are illustrative. Record the old battery as a purchase of scrap at its value, not as a discount, so the scrap stock and its later sale are visible. Ask your accountant how to show the exchange on the bill.

Warranty claims

Batteries carry warranties that typically include a free replacement period and sometimes a pro-rata period, and tyres can be claimed for manufacturing defects after inspection. The dealer receives the failed product, gives a replacement or a claim slip, and waits for the company to inspect and settle. Claims stuck for weeks tie up money and frustrate customers.

• Log every claim with the customer, product, serial or date code, and date received.
• Record when it went to the company and when it was settled.
• Match the company's credit note or replacement against each claim.

See returns and replacements for a register format.

Fleet credit and services

Transporters and fleet owners may buy a full set of tyres for several trucks at once, with fitting and alignment, on 30 to 60 days' credit. Their business is cyclical and payments can slip. Bill each vehicle's job clearly, record the vehicle number on the invoice, and keep fleet accounts on a weekly ageing review. Small services such as balancing, alignment and puncture repair add up; bill every one, even if only ₹200. The guide on credit control applies equally to fleet accounts.

GST points

Tyres, tubes, batteries, inverter batteries and services such as alignment fall under different HSN and SAC codes, and rates have been revised, so check the current rate for each on the GST portal. Old battery buy-back and warranty replacements have specific treatment; settle it with your accountant. This is general information, not tax advice.

Cashflow OS for tyre and battery dealers

Cashflow OS shows your TallyPrime books on the phone: fleet and garage outstanding with ageing, company payables, and daily sales and collections. Service jobs let you record fitting, alignment or battery jobs, add items and charges, close and invoice. Barcodes help with stock counts. Warranty serial numbers stay in Tally if you keep them there; Cashflow OS does not run a separate warranty system. See service jobs.