India is the fourth country after South Africa, Sweden, and Austria where Mercedes Benz India is rolling out its new retail format called the Retail of the Future

The new retail format, where the German company will sell cars directly to its customers instead of through dealerships, has improved customer satisfaction in the markets where implemented. That in turn was leveraged to increase sales.

Mercedes Benz India processed 1,700 orders in the last couple of weeks in this new retail format, said Martin Schwenk, MD and CEO of Mercedes Benz India Ltd at the launch on Friday.

“The retail format was first launched in South Africa about four years ago. Thereafter, it was introduced in Sweden. India is the first country with CKD production which will have the new retail structure. So whenever we face difficulties, we can fall back on the experience of our counterparts in these two countries,” said Schwenk.

When asked what were the tangible benefits of the new way of selling cars, Schwenk said: “It improved the financial position of Mercedes Benz. With customers directly purchasing from the company, a lot of incidental charges like handling charges are done away with.

“The customer can see the entire stock position and there is complete transparancy in the sales process. Mercedes-Benz India will retain the ownership of the entire stock of cars and retail them via appointed Franchise Partners, by invoicing them directly to the customers.”