According to industry officials on the 19th, Mercedes-Benz Korea will begin fully implementing its direct-sales model, “Retail of the Future” (RoF), starting in April. Under RoF, the Korean unit distributes vehicles directly and runs pricing closer to a fixed-price system. The key feature is that headquarters will manage vehicle prices, inventory and delivery dates, allowing customers to buy at the same price nationwide. To integrate systems, the company has significantly increased staff based in South Korea, while dealers will focus on showroom operations, after-sales service and specialized repairs.
A Mercedes-Benz Korea official said the company communicated steadily with dealers for about two years to address misunderstandings and distrust that could arise early in the rollout, and now believes the groundwork is in place for stable adoption. The official said consumers can expect benefits from removing distribution margins and moving toward fixed pricing, while dealers, as official partners, can concentrate on improving service quality, calling it a win-win.
More imported brands have adopted direct sales in recent years. Tesla Korea has used direct sales since entering the market, and Volvo Korea, Polestar Korea, Honda Korea, Toyota Korea, Stellantis Korea and Cadillac Korea have expanded direct-sales programs over the past five years. These brands allow customers to buy vehicles online and check inventory and delivery timing in real time.
An industry official said the traditional dealer system often forced consumers to shop around because prices, delivery dates and service benefits varied by importer, but direct sales unify pricing and channels, making management easier for headquarters and purchases more convenient for customers.
Dealers, however, say wider adoption of direct sales could limit competition, raise imported-car prices over the long term and lead to negative effects such as fewer service centers. Tesla, which has maintained direct sales, sells about 60,000 vehicles a year in South Korea but has only 16 service locations nationwide.
A dealer official said dealers have helped expand the imported-car ecosystem despite low margins of about 3% to 5% of vehicle prices, taking on inventory purchases, financing interest, large showroom openings and building after-sales networks. The official said that as direct sales expand and sales margins shrink, dealers could face disruptions in operating the large service centers they currently run.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.