BERLIN — Audi, one of the largest brands within the Volkswagen AG group, has announced that its new electric vehicles will soon be sold via the agency model. The popular German car manufacturer hinted at a complete shift in their retail policy as the company enters a new stage of automotive development.
The spokesperson from Audi explained that the agency model is more in line with the company’s future sales strategy. Audi is the latest car manufacturers to research direct sales, as opposed to using the more traditional authorized dealership network.
A New Kind of Car Buyer
The industry-wide shift towards the agency model comes as no surprise to those familiar with the tech world. EVs are attracting a new kind of buyer — tech-oriented drivers who approach buying EVs the same way they buy electronics. Audi and other manufacturers are facing a generation of customers who do all their research independently online. To many of them, going to an authorized dealer becomes an unnecessary hurdle.
The spokesperson from Audi noted that VW is planning to shift away from dealerships in phases. Audi will test their direct sales approach in key European markets of France, Great Britain, Germany, Poland, Ireland, Italy, Spain, and Sweden. Potential buyers from these markets will be able to purchase their own Audi EV online starting 2023. The results of this trial could trigger a widespread application of the same model across other markets, and VW Group brands.
Agency Model — The End of Authorized Dealership Networks?
When the news of Audi moving to an agency model was first broken by Automobilwoche, the VW group already had a strained relationship with its dealership network. However, despite a change in their retail policy, Audi insists that dealerships are the core of this company’s sales strategy.
However, these words of encouragement are falling short. The already concerned authorized dealers are looking at Wolfsburg for answers. Many are raising questions about price transparency and how future sales will affect their businesses.
