BMW may adopt Tesla-like direct-to-consumer sales model

BMW iX5
Image via BMW

Tesla’s way of doing things has often proven to be the best in the industry, even though some of their ideas and tactics have received ridicule from legacy automakers.

One of those ideas was to sell their vehicles directly to consumers, bypassing the dealership network that has been around for decades.

BMW Group is the latest automaker to consider selling directly to consumers like Tesla. The German company is contemplating using the model to sell its MINI and BMW brands.

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The move was revealed by Nicholas Peter, the finance chief of BMW Group, in an interview with German news site Muenchner Merkur. Peter mentioned that his company wants to bypass the dealerships between them and the buyers.

BMW is in talks with its dealer, but the sales system is not finalized. However, the platform may be ready for the MINI by 2024 and for BMW two years later.

Startups like Tesla and Rivian have demonstrated that selling directly to buyers works. However, it is easier for them to implement as they do not have the same baggage of existing dealerships as traditional automakers like BMW and Mercedes-Benz.

The latter may have to keep dealers around while transitioning to direct sales.

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Direct sales is not the only page BMW borrows from Tesla’s playbook. It is also attempting to replicate Tesla’s in-car gaming in 2023.