Special report | Direct drive

Car firms are trying out new ways to sell mobility

The days when cars were sold at arm’s length through dealerships is ending

Image: Israel G. Vargas/Getty Images

Tesla pioneered direct online sales because it wanted to establish a relationship with customers on whose data it relies to develop autonomous driving, and also to keep control of pricing and to reap more profits. Aside from America, where restrictive franchise laws forbid it, many carmakers are now adopting the “agency model” of direct sales. Cutting out haggling with a dealer, widely cited by customers as the worst feature of car buying, is one advantage. Selling directly also allows carmakers to set (higher) fixed prices. Most important, it builds relationships with customers that allow carmakers to pull data from vehicles and so sell them other services.

This article appeared in the Special report section of the print edition under the headline “Direct drive”

From the April 22nd 2023 edition

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