Mercedes-Benz intends to follow Tesla, plans to shift to direct sales

Mercedes-Benz appears to be trying to replicate a similar business model successfully adopted by Tesla. The German luxury automaker is planning to shift to a direct to customer sales method instead of the conventional sales process the auto industry follows. The automaker is currently overhauling its sales network in Germany and in the rest of Europe as well, reports Auto News.

By: HT Auto Desk
| Updated on: 24 May 2022, 15:52 PM
Follow us on:
Follow us on:
Mercedes-Benz aims a transition to a direct sales method. (REUTERS)
Mercedes-Benz aims a transition to a direct sales method.

Also Read : BMW introduces M3, M4 Edition 50 Jahre BMW M, celebrates 50 years of M division

Mercedes-Benz Chief Financial Officer Harald Wilhelmn indicated that the automaker is aiming to be in closer proximity to the customer in order to have better control of the pricing of vehicles. For this, the car brand is moving from its current dealership model, said Wilhelmn. The automaker is reportedly cutting 15-20 per cent of its dealerships in Germany and around 10 per cent globally. This strategy comes as part of the plan to hit 25 per cent online sales by 2025. Also, the iconic luxury car brand is aiming to secure 80 per cent of European sales through its direct sales or agency model by 2025.

Mercedes-Benz Vice President of Communications and Marketing Bettina Fetzer has said that reduction of its German dealership footprint will take place by 2028 while cuts to its global footprint will take place by 2025. “We need fewer large showrooms in mature markets," Fetzer said. The report also claims that Mercedes-Benz is moving away from large showrooms in order to shit to the direct sales method. This strategy is claimed to give the auto company a competitive advantage.

Also check these Cars

Find more Cars
Mercedes-benz Gls (HT Auto photo)
₹ 1.05 - 1.09 Cr* *Ex-showroom price
Add to compare
Check latest offers
Explore your Vehicle
Mercedes-benz Maybach Gls (HT Auto photo)
₹ 2.43 Cr* *Ex-showroom price
Add to compare
Tesla Model S (HT Auto photo)
₹70 Lakhs - 1 Cr* *Expected Price
View Details
Mercedes-benz G-class (HT Auto photo)
₹ 2.55 Cr* *Ex-showroom price
Add to compare
Check latest offers
Mahindra Thar (HT Auto photo)
₹ 10.98 - 16.94 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Tata Nexon (HT Auto photo)
₹ 8.10 - 13 Lakhs* *Ex-showroom price
Add to compare
Check latest offers

Mercedes-Benz currently operates approximately 6,500 sales and service outlets around the world and around 1000 of them are located in Germany. As part of its new sales strategy of direct sales, the automaker is aiming to launch dedicated outlets for its different brands such as AMG, and Maybach. This strategy will see the automaker itself owning dealer stock and invoice the customers directly. Dealerships will be tasked with delivering vehicles and receive a commission on each model sold. Apart from that, the dealerships will also churn out revenue through aftersales services.

First Published Date: 24 May 2022, 15:52 PM IST
Shopping Bag Shop Now
74% OFF
Microfiber Car Cleaning Soft Brush Ideal as Mop Duster, Washing Brush with Long Handle, Dust Cleaner Car Wash Brush with Handle, Soft Brush Scratch Free, Cleaning Dashboard Curved Design - Grey
Rs. 389 Rs. 1,499
64% OFF
Antson Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable, Portable,Rechargeable Vacuum (2 in 1)
Rs. 699 Rs. 1,939
73% OFF
IDELLA Car Duster, Extendable Long Handle Microfiber Car Duster Exterior Scratch Free Car Cleaning Tool, Car Dust Brush for Truck, Pickup, SUV, RV, Motorcycle, Vehicles Cleaning,(Multicolor)
Rs. 239 Rs. 899
1% OFF
GOODAIR Clear Car Windshield Enhancer | Classic |12 Tablets
Rs. 295 Rs. 299

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
Powered by: Acko Logo
Please be noted that any information provided herein above will be received by Acko General Insurance Limited (“Acko”). By mentioning the above information, you agree to provide these details and information to Acko.
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.