The Direct-to-Customer model allows brands to invoice the cars directly to the customers.
Taking a leaf out of Mercedes’ books, Volvo Cars India has become the second carmaker to adopt the ‘Direct-to-Customer’ retail sales model.
According to Jyoti Malhotra, Managing Director, Volvo Cars India, the company opted for a D2C sales model for the XC40, which proved to be a success. The carmaker has decided to adopt the same for the upcoming C40 Recharge electric SUV.
The Direct-to-Customer model allows brands to invoice the cars directly to the customers. Volvo will own the entire stock of cars and sell them via appointed franchise partners. It is said that this retail sales model will bring transparency and improve customer convenience.
This, however, does not mean Volvo will no longer have showrooms. The D2C model is a parallel retail strategy to the existing dealer network. There are other benefits such as reduced expenses, better efficiency, helping manage delivery timelines and maintaining a one-price strategy across the country.
Source: ET Auto
Keyword: Volvo India to adopt 'Direct-to-Customer' retail sales model