A rising variety of imported carmakers are shifting to direct on-line gross sales, a technique that helps construct buyer belief in pricing and reduces operational prices, business officers stated Tuesday.
Tesla has set a profitable instance underneath its new gross sales paradigm by promoting completely on-line, avoiding the prices of dealership affiliations. This stands in sharp distinction to the standard dealership-reliant methods utilized by most different international automakers, together with Mercedes-Benz Korea and BMW Korea.
Tesla, which has no dealership community in Korea, operates just a few showrooms for offline promotional functions. However, its Mannequin Y electrical SUV ranked because the nation’s best-selling electrical automobile (EV) through the first 9 months of this yr, outselling rival fashions from Hyundai Motor and Kia by a large margin.
One of many key benefits of direct on-line gross sales is that carmakers can enhance worth transparency. Below the present dealership mannequin, clients usually pay completely different costs for a similar automobile, relying on every seller’s promotions.
The outside of Mercedes-Maybach’s showroom in Seoul / Courtesy of Mercedes-Benz
This does little to boost their model worth or construct long-term belief with clients.
Mercedes-Benz Korea, one of many two most beloved luxurious carmakers together with BMW Korea, can also be shifting to introduce direct on-line gross sales subsequent yr.
The choice is predicted to have a significant influence on the nation’s imported automotive market, as extra automakers are prone to observe swimsuit given Mercedes-Benz’s robust model presence in Korea.
“The web direct gross sales include a number of benefits for each carmakers and clients,” an auto business official stated. “Carmakers can exert a stronger affect within the retail system of their autos, and clients may also buy imported vehicles at an inexpensive and reliable worth as a result of fixed-price on-line direct gross sales.”
Polestar, a premium EV producer, additionally makes use of direct on-line gross sales for Korean clients.
Honda Korea has seen stable gross sales development since adopting direct on-line gross sales in 2023. The Japanese automaker offered 1,385 autos that yr, and the determine almost doubled to 2,507 in 2024, only a yr after introducing the brand new gross sales system.
“Nevertheless, the brand new auto gross sales paradigm will come as a significant survival threat to most dealerships, as their position will probably be steadily diminished with the rise of on-line direct gross sales,” one other official from the auto business stated.
