FADA welcomes shift in Mercedes retail structure. But a word of caution

Mercedes has introduced a direct to customer model, a first in India, and will own the stock of new vehicles.Mercedes says customers can have a much w
...
File photo of a Mercedes India dealership in Surat.
File photo of a Mercedes India dealership in Surat.

Mercedes-Benz India on Wednesday announced a change in its retail structure in the country by opting to have a direct to customer model under which it would own the entire stock of new vehicles for sale. While promising transparency and best prices to customers, Mercedes highlights it would improve the financial health of dealer partners due to lower cost structure and zero inventory. The Federation Of Automobile Dealers Associations (FADA) has largely welcomed the move while also choosing to highlight that the viability of such a model for mass-market players would remain to be seen.

Also check these Vehicles

Find more Cars
Mercedes-benz Gle (HT Auto photo)
Engine Icon2999 cc FuelType IconMultiple
₹96.40 Lakhs - 1.15 Cr
Compare
View Offers
Mercedes-benz Glb (HT Auto photo)
Engine Icon1950.0 cc FuelType IconMultiple
₹ 63.80 - 69.80 Lakhs
Compare
View Offers
Mercedes-benz Eqb (HT Auto photo)
BatteryCapacity Icon66.4kWh Range Icon423 km
₹ 74.50 Lakhs
Compare
View Offers
Mercedes-benz Eqc (HT Auto photo)
BatteryCapacity Icon80 kWh Range Icon471 Km
₹ 1.07 Cr
Compare
Mercedes-benz Glc (HT Auto photo)
Engine Icon1999 cc FuelType IconPetrol
₹ 73.50 - 74.50 Lakhs
Compare
View Offers
Mercedes-benz Amg E53 (HT Auto photo)
Engine Icon2999.0 cc FuelType IconPetrol
₹ 1.02 Cr
Compare

Mercedes has introduced its Retail of Future business model with a view of enhancing car-buying experience while promising better financial stability of dealer partners in Covid-19 times. The company would own the entire stock of new vehicles and a customer can walk into any showroom in any part of the country and make choice from all the available options from the car maker, not just those available at the dealer. This model is a first in India but Mercedes had previously adopted this in Sweden and South Africa.

FADA President Vinkesh Gulati is of the opinion that it could help Mercedes dealers but also added that it could be something specific to the luxury vehicle space. "The agency model introduced by Mercedes India will be an out of the box thinking by the company. Even though the model has tested waters internationally, India is a unique market where customer physic is very different as they change dealers and even brands on any additional discount," he explained. "Even though on the face of it, this model looks beneficial for the dealer community dealing in Premium Brands with low Volume but we will need to see if this model can work with mass market brands so that every dealer can benefit out of it."

The shift to a direct to customer model from Mercedes is perhaps the second biggest move in Covid times related to how cars are sold. This after almost every auto company shifted to either establish or enhance online retail channels in the country last year.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.

First Published Date: 02 Jun 2021, 16:17 PM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city
Select a dealer

Want to get the best price for your existing car?

Powered by: Spinny Logo
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.