Mercedes-Benz India announced on Wednesday that the way they buy luxury cars in the country will undergo a fundamental change, which may benefit not only buyers but also dealers. Mercedes-Benz implements a direct-to-customer model (D2C) through its established franchise network and official online sales platform.
The automaker said that the first step taken in India will help Mercedes buyers make informed decisions. From the complete product list, but also strive for a smoother checkout process. Through the “retail future” model, Mercedes-Benz customers in India can view a large number of vehicles for Mercedes-Benz dealer evaluation, saving time and effort. According to Mercedes, since the company directly offers the best prices, there is no need to negotiate.
In addition, absolute transparency is guaranteed, because buyers can also compare prices throughout the month. According to the automaker, Mercedes-Benz India CEO and CEO Martin Schwenk believes that the new business model of new cars will attract buyers, but will also consider Mercedes dealers Inside. Our franchise partners are working on this transformation to significantly reduce financial and operational risks, resulting in a profitable and sustainable business model.
Most importantly, the centralized operation is now owned by Mercedes-Benz India, and a centralized ordering system has been launched. Due to the lower cost structure and zero inventory, the system may ensure a better financial situation for partner dealers. The reason this may be a blow to Mercedes dealers is that during the lock-ups and restrictions caused by Covid-19, these dealers are now more likely to receive fewer beats than before. Mercedes also emphasized that this may mean better customer relations.
However, the future retail business model is only applicable to new car sales, and there will be no changes in individual business areas such as customer service, used cars, and accessories.