Mercedes-Benz announces online sales

Mercedes-Benz Australia-Pacific has announced direct online sales for its first electric vehicle, the Mercedes-Benz EQC 400 4MATIC. And, it is only the first – the company will include all future EQ models and eventually extend online sales to other vehicles.

Mercedes-Benz rolled out its online sales strategy in other markets in recent months and expects 25 per cent of its global sales to be online by 2030. For now, Australia is the only market in which the online platform is electric only.

Mercedes-Benz Australia (MBAu) says the groundbreaking retail strategy for its first EV is designed to improve its customer experience. It said the new online model, in which customers will order online and purchase vehicles from it directly, is in response to research that shows many buyers dislike the negotiation process with dealers.

As such, the Mercedes-Benz EQC 400 4MATIC comes with a non-negotiable price of $137,900 plus on-road costs. It will be available to purchase online and view or drive at just nine EQ showrooms from December 9.

First customer deliveries will be in early 2020.

Australia’s nine Mercedes-Benz EQ agents are located in Sydney, Parramatta, Melbourne, Waverley, Brisbane, Gold Coast, Adelaide, Perth and Canberra. MBAu says their locations, including two in each of Australia’s two biggest cities, are where the majority of EQC demand exists.

It says the online sales launch coincides with the launch of the Mercedes-Benz EQC because demand exceeds supply. Mercedes-Benz received more than 3000 Australian registrations of interest within a week of announcing a sub-$150K indicative price for the EQC when it made its world debut in September 2018.

The company will not confirm how many EQCs have already been ordered or allocated to Australia, but all 25 examples of the special Edition 1 version are already spoken for. Customers who order now will have to wait until the second half of next year (2020) for delivery.

Using the online process, customers will choose their vehicle’s colour, options and final specifications, receive its drive-away price, choose to purchase outright or via finance, pay a $3000 credit card deposit via their Mercedes Me account, receive confirmation of their order and select their EQ agent for delivery.

Mercedes-Benz says customers will have access to a wider national stock pool but precise delivery timing is not confirmed until the end of the process.

“There is a desire by consumers to purchase everything online, including even cars, so that’s what we’re offering,” said MBAu network development and customer management director, Jason Nomikos.

“The online channel is not a replacement for the emotional connection between dealers and customers. It’s simply an option for those that want it.”

MBAu says its “set” pricing strategy creates transparency and speeds up the purchasing process. It says it does not violate Australian Competition and Consumer Commission laws because they apply to wholesalers and their retail networks and in this case it is a retailer.

It admits many Mercedes-Benz dealers are unhappy with the online EQ sales model and said many more than nine of its 54 Australian dealers applied to be an EQ agent.

“In all honesty some [dealers] said they’re not comfortable. It’s a big change,” said Nomikos.

Under the new business model, Mercedes-Benz Cars Australia retains ownership of vehicles throughout the sales process and picks up many of the administrative functions typically handled at retailer level.

All nine EQ agents will be supplied two EQC vehicles – one demonstrator and one for display. EQC owners can have their vehicle serviced at any of 26 metropolitan Mercedes-Benz service centres.

Additional service centres will be announced but major mechanical procedures must be carried out at a specialist service department within the EQ network. Servicing is either via a discounted up-front package or a capped-price pay-as-you-go structure.

Strict protocols will apply to dealers that are not EQ agents.

One Mercedes-Benz dealer principal we spoke to said: “We can’t even print the word EQ in our newsletter”.

Additional EQ agents will be appointed as part of a “wave two” EQ brand expansion when EQC production ramps up and when further dedicated new Mercedes-Benz EV models are released. Mercedes has committed to release seven EQ-branded full-EVs Down Under by 2023 (three of the 10 promised by Daimler by 2022 will be smart EVs not sold here).

These will include mini, small and large SUVs to straddle the mid-size EQC — dubbed EQA, EQB and perhaps EQE respectively — and the range-topping EQS based on a dedicated new EV platform that will also spawn a large sedan around the size of an E-Class.

MBAu CEO and managing director Horst von Sanden said: “We consider the new business model to be an opportunity for our authorised retailers to be able to help shape the future challenges within the automotive industry.

“It will allow us to offer our customers an improved experience and gives us the possibility to better recognise the customer’s needs and respond faster to them.”

However, von Sanden warned dealers may not necessarily be part of the purchase process at all in future.

“If a customer is serious about avoiding a dealership completely we would offer that in future, but it’s not part of our initial offer,” he said.

Nomikos said existing Mercedes-Benz models including plug-in hybrid and 48-volt mild-hybrid versions (dubbed EQ Power and EQ Boost respectively) would likely also be sold directly online in the future.

“We’re considering the entire range, but obviously the EQC was the ideal car to launch with,” he said.