Mercedes-Benz Malaysia deploys dealer model – direct sales to consumers, “dealers” enjoy commissions

Mercedes-Benz Malaysia has begun work on rolling out the dealership model for Mercedes-Benz dealers in Malaysia, as evidenced by Hap Seng Consolidated Berhad having informed Bursa Malaysia that it has signed a Memorandum of Understanding with Mercedes-Benz Malaysia to negotiate on the new model.

According to Mercedes-Benz, the dealership model has already been rolled out in Europe and it is expected that by the end of 2023, more than half of the new Mercedes-Benz models will be sold under the new dealership model.

What exactly is the agency model and how is it different from the agency model? In the proposed Mercedes-Benz dealer model, the sales contract with the customer would be with Mercedes-Benz, not the dealer. The agent will only act as an agent and be paid a commission for their sales service.

According to Mercedes-Benz, this will allow for a smoother transition to online sales and allow greater control over transaction prices.

Hap Seng Star dealer of Hap Seng Consolidated Berhad is not the only dealer that Mercedes-Benz Malaysia is negotiating to convert to dealership model. Incidentally, Hap Seng is publicly listed so it has to be announced. Cycle & Carriage Bintang was once listed on Bursa but was delisted and made private in September 2022.