Volvo Cars India has recently followed in Mercedes’ footsteps. They are adopting the “Direct-to-Customer” (D2C) retail sales model. Thus making them the second automaker in India to do so. Volvo decided to implement the D2C model after witnessing its success with the XC40. They will now extend this approach to the upcoming C40 Recharge electric SUV.
Under the D2C model, Volvo will directly invoice cars to customers. The company will maintain ownership of the entire stock of vehicles and sell them through selected franchise partners. This retail strategy aims to enhance transparency and improve convenience for customers. Importantly, Volvo will continue to maintain its physical showrooms alongside the D2C model. The D2C approach will run parallel to the existing dealer network and offer several advantages, such as cost reduction, increased efficiency, streamlined delivery timelines, and consistent pricing nationwide.
In summary, Volvo Cars India has embraced the D2C retail sales model, inspired by Mercedes. By directly invoicing customers, owning the entire vehicle stock, and collaborating with franchise partners, Volvo aims to enhance transparency and convenience for customers while maintaining physical showrooms. The D2C model offers benefits such as cost reduction, improved efficiency, and consistent pricing throughout the country.
Volvo Cars India remains committed to its plan of launching one electric vehicle annually until 2025. And the EV market is an evolving ecosystem with an increase in sales. The direct-to-consumer sales model, which began with the XC40, has gained popularity among Volvo buyers. Thus we expect it to gain further momentum with the introduction of the C40.
Regarding the current demand environment, Volvo acknowledges the strong uptake in the market, particularly in the luxury car segment. Thus, that the Indian luxury car market will reach a new peak in 2023. Volvo Cars India aims to surpass the sales figure of 2,600 units achieved in 2018.