Emphasizing on ‘direct to customer’ philosophy, the German carmaker is establishing a franchise-based network and hold control of centralized stock. MB India believes this will allow better financial health of franchise partners (dealerships) due to lower cost structure and zero inventory management expenses.
The customer will be benefitted from a larger pool car, the best prices directly from Mercedes-Benz India without having to negotiate, easier price comparison, seamless and simplified purchase process. The company also claims the process to be complete transparency, and the sale and delivery of cars with facilitated through the franchise partners, savings of time and effort.
Mercedes-Benz India will be responsible for centrally managing the selling price of all new cars, owning and managing the entire stock of new cars and order processing. MB India will directly compensate the franchise partners.
“Franchise Partners continue as brand representatives, maintaining their strong connect with customers and striving to offer the best customer experience in the market,”said Martin Schwenk, Managing Director and CEO, Mercedes-Benz India.
ROTF will be implemented in India from Q4 2021 onwards. A similar business model has been implemented in Sweden by the carmaker. Separate business lines including customer service, pre-owned cars and allied businesses remain unchanged.