Volkswagen Group is reevaluating its direct-to-customer sales approach, citing challenges posed by the automotive market’s transition to electric mobility. The German automaker recently announced a joint review with its retail and wholesale partners in select European markets to assess its current sales models and determine the best path forward.
In a statement, Volkswagen reiterated its commitment to the direct-to-customer model as a long-term goal but acknowledged that adjustments may be needed. “Due to the slower transition to electric mobility across the industry, two sales models for private customers would need to be operated in parallel longer than originally anticipated: The Agency model for all-electric vehicles (BEVs) and the indirect sales model for vehicles with other drivetrains,” the company explained.
The complexity of operating dual sales models has prompted Volkswagen to consider a temporary return to an indirect approach for BEVs in the short- to mid-term. “We are conducting a joint review with wholesale and retail organizations to determine whether adjustments are necessary,” the automaker stated, adding that the review would aim to balance operational efficiency with delivering an optimal customer experience.
Volkswagen plans to continue using the direct-to-customer Agency model in specific areas. The company highlighted its established Fleet Agency, which it plans to scale and optimize, and confirmed the implementation of a Full Agency model for all drivetrains in Ireland and Sweden. Additionally, CUPRA will maintain its role as the Group’s pioneer in selling BEVs through the Agency model.
The results of Volkswagen’s review are expected by the first quarter of 2025. The findings will influence the company’s strategy as it navigates the challenges of electric mobility while striving to meet market demands and customer expectations.
