Europe: Skoda to introduce direct-sales agency from 2024

Skoda will conduct an audit to decide the set-up of its future dealer network in Europe by the end of the year.

According to media reports, Skoda will follow in the footsteps of Stellantis & Mercedes-Benz by introducing a direct sales agency in Europe.

The new direct-sales agency model is set to be adopted in 2024, starting with the brand's upcoming Elroq SUV. The new sales model will soon expand to include its EV range, along with private and fleet offerings. As per the new sales model, Skoda dealerships will sell vehicles on behalf of the manufacturer but can expect to make similar returns as the current model.

Jan-Hendrik Huelsmann, Skoda's German head, stated, "The planned remuneration allows partners to achieve a similar return as in previous years, if we disregard the past two years." Reports also stated that to avoid cannibalisation across its brands, VW Group will offer remuneration of around 6.5% under the new model.

Thomas Peckruhn, President of Skoda's Dealer Association, added, "The launch of the agency model with the introduction of the Elroq and the gradual expansion to new models is in line with our negotiating position."

Skoda will conduct an audit to decide the set-up of its future dealer network in Europe by the end of the year.

Source: CarScoops