Explained: A new auto sales channel by Mercedes-Benz India takes shape

Carmakers make cars, and car dealers sell these. This has been the practice for as long as one may remember. It makes sense also; a buyer cannot approach the factory gates of a Maruti Suzuki plant in Manesar to buy a car! Mercedes-Benz India, however, thinks direct selling to end-customers is possible. The German luxury carmaker has started Retail of the Future (ROTF), a new format where Mercedes-Benz India will own the entire stock of cars, sell these via franchise partners (existing dealers), invoice new cars to customers directly, process the order, and even fulfil these. The goal is to offer one transparent price and purchasing experience for customers across India. “It’s a smart move by Mercedes-Benz India, because it knows its customer is digitally-savvy; it’s a great way to engage with customers directly,” said Preetam Mohan Singh, senior vice-president, Automotive, Praxis Global Alliance.