Swedish carmaker Volvo has announced that it will start selling vehicles online. The company, which competes with other German luxury carmakers, will slowly introduce web sales of its new models and will invest more on digital advertising.
According to Alain Visser, the chief of sales at Volvo, "The plan is to have all our car lines in all our markets offered digitally."
The Swedish carmaker has assured its 2,000 dealers worldwide that this move will not affect its dealers or outlets, like what Tesla did.
Visser said, "If you say the word e-commerce, initially dealers get nervous.We don't see a car distribution network without dealers in the foreseeable future. Vehicles sold online will still pass through the dealer network for delivery."
Almost 80 percent of Volvo customers shop online for many goods. Even research suggests that customers will start shopping online for cars in the future.
Analysts like Stuart Pearson of Exane BNP Paribas are skeptical. Pearson feels that customers will still want to go to dealers if they want to buy a car.