Mercedes-Benz India introduces ‘Retail of the Future’ programme: Paradigm shift in selling process

Mercedes-Benz will now directly be drawing invoices to the consumers by keeping the dealership away from the sales channel. Also, the final prices and discounts will be controlled by the carmaker itself.

By:October 22, 2021 6:44 PM
Mercedes-Benz ROTF


Mercedes-Benz India has today announced that it will now retail its vehicles directly to the consumers. The German marque has opted for a paradigm shift from the traditional way of selling cars. The company has re-jigged its sales channel, as the consumers will now get the vehicle directly from the carmaker and not through a dealership. The brand started testing this sales model in June this year. However, today the beta testing comes to an end, during which it garnered over 1,700 orders. The new sales model is called Retail of the Future. The company has made an investment of more than Rs 60 crore for the implementation of the new ROTF scheme.

Under this sales model, the company will be drawing invoices for the consumers directly. Also, Mercedes-Benz revealed that India is the first CKD market where it has implemented the new ROTF sales model. Furthermore, it is the fourth market across the world where the German marque has introduced the ROTF sales channel after Sweden, South Africa, and Australia. However, with the new model implemented, dealerships will remain as is. They will take care of vehicle delivery and after-sales & service. The ROTF will not control the sales of pre-owned vehicles.

For those who are always keen on negotiating with dealers for the final on-road price, there is not-so-good news. The prices will be centrally controlled by the brand itself, and Mercedes-Benz will take care of the discounts and final quotation of the preferred model. Hence, the deals will remain uniform throughout the country. With the deliveries and purchase experience being supervised by the manufacturer itself, a reduction in the waiting period is anticipated. Besides, to make the process transparent, consumers will receive VIN (Vehicle Identification Number) details the moment they order a vehicle.

Martin Schwenk, Managing Director and CEO, Mercedes-Benz India said, “With ROTF, we have created a completely unified customer journey experience with many industry-first initiatives to its credit. For the first time in India, there are no incidental or extra charges for the customers. Customers now have a direct access to Mercedes-Benz India’s national stock with a wide variety of inventory choices. ROTF is a step in the right direction in getting closer to our customers, and a result of listening to their wishes and evolving requirements. As the most trusted luxury brand in the country, we have set a new standard in customer centricity, a new benchmark in Franchise Partners’ profitability and introduced a new culture of competing only for the best customer experience.”

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