In June 2021, Mercedes-Benz India gave us an overview of how it plans to revolutionise its retail business and step forward from a traditional setup. And it tagged the new model as ‘Retail of the Future’ (ROTF). Now, however, the brand has completed the transition after a beta testing phase.

Mercedes-Benz India highlights several plusses of ROTF. But from a broader perspective, it will help buyers and franchise partners in various ways. In essence, the carmaker will sell cars directly to customers. It has created a national inventory database, which is visible to all potential buyers across the country. What that also means is the brand will set the best price. In other words, customers won’t have to speak to multiple retail outlets to strike the best possible deal.

Even for franchise partners (dealers), ROTF ushers in a sigh of relief. They won’t have to worry about ageing stocks or working capital. Also, the double-edged sword of high fixed costs and steep interest rates goes away, leaving dealers to concentrate on customer experience. For instance, at the time of delivery, there will be a ceremony, a full tank of fuel and the option of taking delivery on a flatbed (on a chargeable basis). However, if the customer is within a 100 km radius of the car, there will be no delivery charges.

Also, the company promises an entirely transparent buying process. So, when a customer wants to pay for a car, the net price will go to Mercedes-Benz India. On the other hand, the costs related to Insurance, Registration and additional government charges will go to the selected franchise partner. As standard, the brand will rope in the Star Protect Gold insurance plan. But customers will have the option to downgrade or upgrade to a different tier.

For Mercedes-Benz, India is the first CKD country where the ROTF model has been implemented. On a global scale, India ranks fourth after Sweden, Austria and South Africa. In its beta phase, ROTF has brought in over 1,700 bookings for Mercedes-Benz India. That’s a promising start for something that attracted over 1,00,000 working hours, more than 175 people from around the country and an investment of Rs 60 crore. And, the brand took 24 months to get things in place for a successful rollout.