Volkswagen plans to radically overhaul how you can buy a new car

It says the change in the business model – which it calls Future Sales – means potential buyers will be able to seamlessly conduct the entire transaction online, physically purchase the car the traditional way in a showroom, or blend the two routes, which is what happened during Covid when people dealt online with the dealer and only visited the garage near the close of the deal.

In announcing the decision, Volkswagen Group Ireland (VGIE) claims the expansion in the sales format is designed to meet evolving buyer needs.

But it emphasises that following its network reconstruction, future retailers will continue to play a key role under the new sales model.

The Future Sales format will be introduced from 2026 and will be “geared towards customer needs, allowing for the move towards seamless online, physical and blended purchasing experiences”.

The announcement outlined: “This combination of a state-of-the-art digital customer journey and a highly competent retail network will enhance consumer satisfaction and deliver a best-in-class retail experience.”

With the group accounting for more than 25pc of the market share of new-car purchasers each year (27.57pc last year), the decision will be viewed as an important step in the market leader’s drive to streamline the business.

This is being carried out at a time of great upheaval in the market, widespread uncertainty over the fall-off in EV-buying in the short-term and its implications for sellers and buyers in the longer term as well as a ferocious onslaught of lower-cost Chinese brands.

The favourable response to changing ways from customers is obviously calibrated to reflect demand for greater digitalisation in all or part of the sales process. Ultimately, the customer decides which approach suits them.

The approach is, in effect, played out to greater or lesser extent with dealerships, including Volkswagen, all over the country.

The company claims the Future Sales model has a lot of advantages. It says that by digitalising the purchasing process, potential buyers can enjoy maximum convenience while maintaining access to Volkswagen Group’s nationwide network of retailers.

The model allows the group to establish a direct interface with customers so that all their needs are met. They want to have the best retail experience in the industry.

Alicia O’Connor, director of sales transformation and customer experience, said: “In every aspect of life, customers want faster, more convenient and transparent transactions.”

Irish customers are comfortable buying online, she claims, but many still want the tactile experience of going to a showroom, getting into a vehicle and taking it for a test drive.

“With the Future Sales model, they have the best of both worlds,” she said.

Volkswagen added that the model means future retailers will continue to play an integral role in the new vehicle sales process.

“They will hope to be able to take advantage of increased efficiencies and the growth of online sales.”

Pierre Boutin is group managing director and CEO of Volkswagen Group Ireland and, in announcing the Future Sales plan, he said: “I want to express my gratitude to all of our retailers for their dedication and partnership in serving their customers.

“Moving forward, our future retailers will remain a cornerstone of the business.”

He said they recognise the importance of digitalisation for consumers and in creating increased value, convenience and satisfaction for buyers.

The group directly employs more than 140 people in Ireland.

Last year, the group registered 33,736 passenger cars – a market share of 27.57pc. It sold 3,185 commercial vehicles through the network of retailers.