Import car manufacturers that manage vehicle inventories directly and unify selling prices are on the rise. This is due to the determination that the current system, where dealers and manufacturers forgo revenue to compete, is not sustainable. From the consumer's perspective, there is the advantage of not having to search for dealers that offer the lowest prices; however, there are concerns that reduced competition may lead to fewer price benefits.
According to Stellantis Korea, the 'All-New 3008 Peugeot Hybrid' released on the 3rd has implemented a consignment sales method. Unlike the previous method where dealers purchased vehicles wholesale, managed their inventories, and arbitrarily set prices, Stellantis Korea now directly holds the inventory and only entrusts sales to dealers. Dealers cannot intervene in pricing and must sell at the prices set by Stellantis Korea. Stellantis Korea adopted this method starting with the Peugeot '308 Smart Hybrid' introduced in May.
Currently, Stellantis Korea dealers receive a commission for each car sold. It is rumored that this system was initially requested by the dealers. A representative from Stellantis Korea said, "When prices are unified, customers will not need to seek out multiple dealers, and dealers will be able to escape the bleeding competition," and added, "However, there are still customers who expect prices to decrease if they wait, so an adjustment period is still necessary."
Mercedes-Benz Korea is also expected to end its current sales system, which relies solely on dealers, around next year. The key point is to implement an online and offline hybrid sales system, with inventory managed by Benz Korea. Vehicles can be purchased offline, but prices will be the same at any dealership.
A representative from Benz Korea stated, "Customers will take vehicles from the entire inventory that Benz Korea has and will receive the same promotional benefits anywhere in the country," adding, "This has already been implemented in the UK, Turkey, and Malaysia, and we are discussing a structure optimized for the Korean market with dealer companies." BMW, Volvo, and Honda are also conducting partial or fully online sales in the Korean market.
Recently, as demand for imported cars has decreased, dealer margins have also been declining. If inventory builds up, they could face bankruptcy in the worst-case scenario. If that happens, manufacturers will lose their sales networks. An industry insider noted, "If the bleeding competition becomes excessive, there are cases where revenue decreases even if sales volume increases," and added, "Right now, all manufacturers and dealers are engaging in a self-defeating operation."
BMW Korea and Benz Korea, which rank 1st and 2nd in the imported car market, sold 73,754 units and 66,400 units, respectively, last year. This reflects a decrease of 4.7% and 13.4%, compared to one year ago. Their operating profits decreased by 36.2% and 34.6%, respectively. The increase in advertising and promotion expenses by 8.3% and 12.9% significantly impacted this.
There are also concerns that reduced competition between dealers and manufacturers due to the proliferation of direct and consignment sales may lead to fewer consumer benefits. In response, an industry insider stated, "Currently, there are customers who cannot receive discounts due to the large disparity in market information," and added, "It is not that discount promotions are disappearing, but they aim to provide the same benefits to all customers."