Mercedes-Benz to sell cars directly to customers under new model

Mercedes-Benz India will sell cars directly to customers by using online methods which the luxury carmaker promises will be ‘hassle-free and transparent.

The Pune-based company will commence the ‘direct to customer’ model called ‘retail of the future in the October-December quarter of this year. Such a sales and distribution model is seen for the first time by a luxury carmaker in India. Online booking for Mercedes-Benz is 15-20 percent at present.

Martin Schwenk, MD & CEO, Mercedes-Benz India said, “This long-term strategic move will strengthen our customer focus by introducing a fundamental transition in the retail business in the market. It will also deliver a win-win solution for both customers and franchise partners. The advent of a new sales channel has brought sweeping changes in customers’ aspirations and requirements, and we have adapted our current business models to meet our customers’ aspirations and needs.”

According to this new business model, Mercedes-Benz India will own the entire stock of cars, sell them via appointed franchise partners, invoice the new cars to the customers directly, process the order, and fulfill them, offering one transparent price and purchasing experience for customers.

Besides a simplified purchase process, Mercedes-Benz claimed that the customer can avail the best price directly from Mercedes-Benz and benefit from transparent price comparison across the product range. This model will do away with different pricing structure in different cities. Prices will be the same in any part of the country.

Mercedes-Benz however further clarified that cars will continue to be sold through the 100 dealerships who will also be tasked to develop and maintain customer relationship. The existing showroom infrastructure will continue to remain the same. Customer services, pre-owned cars and accessories will continue to operate as usual.

The primary roles and responsibilities of the Mercedes-Benz franchise partners include establishing and maintaining customer contacts, developing of the market, and facilitating the sale of Mercedes-Benz cars.

Mercedes-Benz India has promised to launch 15 models in 2021 including the GLS Maybach which will be launch next.