Mercedes-Benz has invested Rs 1,700 crore in India as it’s making a shift in the way it sells automobiles within the nation. From October 22, Mercedes-Benz India’s sellers won’t maintain any stock of recent fashions.
Mercedes-Benz India, the nation’s largest luxurious automobile maker, has invested Rs 1,700 crore within the India enterprise because it makes a shift in the way it sells automobiles within the nation. From October 22, the carmaker’s sellers won’t maintain any stock of recent fashions.
Martin Schwenk, managing director and CEO, Mercedes-Benz India, stated the final of the Mercedes-Benz car was shipped off to dealerships earlier this month.
Schwenk stated they’ve determined in opposition to debt to fund the enterprise and most popular to take the fairness capital route for this, and have elevated fairness accordingly. “Early within the 12 months we had a `1,700 crore injection into our capital and we’re utilizing fairness to do this,” he stated. The corporate is utilizing its personal sources.
“We take all of the stock on our steadiness sheet,” Schwenk stated. The corporate has labored with dealerships within the final 15 months on this transition.
“It’s a viable mannequin within the eyes of the sellers,” Schwenk stated. Mercedes has the most important dealership community for luxurious automobiles within the nation.
Below the brand new mannequin, known as ‘Retail of the Future’ (ROTF), the corporate will perform centralised ordering and fulfilment. It can personal all the inventory of automobiles and promote it by way of appointed franchise companions. Mercedes-Benz will bill the brand new automobiles to the shoppers straight, course of the orders and fulfil them, and provide one clear worth and buying expertise for patrons.
For the corporate, it will imply direct entry to buyer perception, worth stability and quantity scalability. The purchasers will get a bigger pool of automobiles to pick out from. The corporate will even offer uniform pricing for its automobiles throughout the nation.
For dealerships, monetary burden will scale back significantly as they must pay excessive curiosity value to accumulate stock. Because the centralised inventory will now be owned by Mercedes-Benz India, it should remove operational and capital dangers for sellers.
Sellers will now change into franchise companions, carry zero stock and can face zero market danger in order that they’ll deal with native market improvement and development. The present showroom infrastructure will proceed to stay the identical.
They are going to be answerable for establishing and sustaining buyer contacts, lead era and administration, improvement of the market and facilitating the sale of Mercedes-Benz automobiles. Dealerships will focus extra on the client expertise.