Auto, Business, Royal Enfield, Technology, Eicher Motors

In the case of Mercedes-Benz, its dealers will not go out of business once the direct-to- customer plan takes effect.

The concept of selling vehicles directly to customers may be gathering steam in India with Royal Enfield now contemplating a relook at its distribution strategy.

The maker of leisure bikes acknowledged that customers increasingly want to buy vehicles from the manufacturer and get it home delivered.

Last week, luxury car market leader Mercedes-Benz said it will start selling vehicles directly to customers before the end of this year.

This will allow the German automobile giant to dictate product prices and a better management of its inventory. No automotive company in India has tried selling vehicles directly to customers yet.

“Slowly but surely there is a change that is happening where the people want to buy directly from the company, delivered straight to home. So, in the long run I have to say we will need to relook at our distribution strategy overall,” said Vinod Dasari, CEO, Royal Enfield speaking to analysts.

Eicher Motors-owned Royal Enfield has a network of 2,056 dealerships across 1,750 locations, as at the end of FY21, according to disclosures made by the company.

These include 1,025 regular stores and 1,031 small format stores called ‘studio stores.’

In comparison, Mercedes-Benz has around 100 dealerships in India.

With such a wide national reach, Royal Enfield stated that it has already achieved the network expansion planned for. “Other than one state, we are practically covered with the network expansion plan we had,” Dasari added.

Over the last one year, Royal Enfield, which makes motorcycles under the brands Classic, Himalayan, Interceptor, Continental GT and Meteor, accelerated its digital engagement with its target customers where it launched a mobile application and also allowed buyers to heavily customise their motorcycles of choice.

“Last year, we focused on fast-tracking digital projects and invested in building a hassle-free and engaging digital ecosystem to unlock enhanced brand experience with the swipe of a screen. We built the Royal Enfield App facilitating easy discovery, purchase, ownership, and services of motorcycles, as well as Make-it-Yours, a first- of-its-kind motorcycle personalization experience,” Dasari told Moneycontrol.

Because of constant advancements in technology, automakers can adapt to changing consumer preferences and manage their production and inventory in a much better way than before.

Companies can withdraw and launch new colours and engine and fuel variants of vehicles faster than before.

“We are constantly working on integrating our in-store and online experiences and will continue to have a judicious mix of physical and digital brand touchpoints for our customers,” Dasari explained.

In the case of Mercedes-Benz, its dealers will not go out of business once the direct-to- customer plan takes effect.

In fact, as per the German luxury brand, the engagement of its dealer partners in the vehicle sale process will be more streamlined as their primary task would be customer acquisition and brand promotion.


Japan travel news, japan travel guides, japan holiday destinations and japan reviews

LATEST NEWS

NEWS RELATED

More than half of new Mercedes-Benz S-Class, costing Rs 2.17 crore, sold even before launch

Mercedes-Benz S-Klasse, 2020, Outdoor, Fahraufnahme, Exterieur: Hightechsilber Mercedes-Benz S-Class, 2020, outdoor, driving shot, exterior: hightech silver More than 75 units of the fully imported Mercedes-Benz S-Class have been sold even before its official launch on June 17. The Pune-based luxury car maker has priced its flagship limousine at Rs 2.17…

Read more: More than half of new Mercedes-Benz S-Class, costing Rs 2.17 crore, sold even before launch

COVID-19 to further fuel used car sales, volumes expected to hit 8 million by FY25

India’s used car market is expected to expand to 8.2 million units by FY25 from an estimated 3.8 million in the last fiscal, helped by increasing preference for personal mobility and higher supply of new cars in the market. According to the ‘Indian pre-owned car market’ study commissioned by Volkswagen…

Read more: COVID-19 to further fuel used car sales, volumes expected to hit 8 million by FY25

JLR drives in new Range Rover Velar in India tagged at Rs 79.87 lakh

Jaguar Land Rover (JLR) India on Wednesday said it has launched an updated version of Range Rover Velar with price starting at Rs 79.87 lakh (ex-showroom). The new Velar is available in the R-Dynamic S trim with 2-litre petrol and diesel powertrains. The model now comes with various new features…

Read more: JLR drives in new Range Rover Velar in India tagged at Rs 79.87 lakh

HMSI drives in 2021 Gold Wing Tour, price starts at Rs 37.2 lakh

Honda Motorcycle & Scooter India (HMSI) on Wednesday said it has launched an updated version of its superbike Gold Wing Tour in the country. The new version of the bike makes its way to the Indian market through the CBU (completely built-up) route from Japan. The 1,833cc 2021 Gold Wing…

Read more: HMSI drives in 2021 Gold Wing Tour, price starts at Rs 37.2 lakh

Electric two-wheeler makers cut prices; Ather, TVS, Ampere issue revised prices

Two days after the government raised demand incentives, manufacturers of electric two-wheelers issued a revised price list of all models that qualify for the new subsidy. The cut in prices of a maximum Rs 14,500 have made these battery-powered two-wheelers close the gap further with their petrol counterparts, and, in…

Read more: Electric two-wheeler makers cut prices; Ather, TVS, Ampere issue revised prices

BMW S 1000 R motorcycle launched in India at Rs 17.9 lakh

German luxury automotive group BMW on Tuesday launched the all-new BMW S 1000 R motorcycle model in India with price starting at Rs 17.9 lakh (ex-showroom). The second generation BMW S 1000 R is being imported as a completely built-up unit (CBU) and can be booked at all BMW Motorrad…

Read more: BMW S 1000 R motorcycle launched in India at Rs 17.9 lakh

Toyota Kirloskar Motor resumes production at Bidadi plants

Source: Reuters Toyota Kirloskar Motor (TKM) on Tuesday said it has partially resumed production at its Bidadi-based manufacturing plants in Karnataka. The company noted that it has commenced operations at two facilities with the prescribed workforce strength of 50 percent. The automaker, which sells models like Innova Crysta and Fortuner…

Read more: Toyota Kirloskar Motor resumes production at Bidadi plants

Semiconductor shortages will hit Q2 volumes also: JLR guidance

Shortage of semiconductors is expected to spill over to Q2 and impact the quarter’s production of Jaguar Land Rover going against the earlier guidance given by it of improvement in the availability of the chips. “The automotive industry has been experiencing a global shortage in the supply of semiconductors, primarily…

Read more: Semiconductor shortages will hit Q2 volumes also: JLR guidance

Electric Vehicles: FAME II scheme for may get 2-year extension till March 2024

Exclusive | Tiger in talks to back Spinny, valuation zooms to $800 million 

Carlos Ghosn pledges lengthy fight to clear his name

Why an electric scooter is the need of the hour

Tata Motors to raise up to Rs 500 crore via securities

We do not plan to catch up, we plan to lead: JLR CEO Thierry Bollore

Current fiscal may see highest number of model launches: Royal Enfield

Undeterred by pandemic, Skoda Auto eyes going past all-time peak sales volume next year

OTHER NEWS