With TOGG, on October 29, Turkey officially took its place among the players in the industry. There are even those who have already put their vehicle up for sale for TOGG, which was well received after the first car rolled off the assembly line. One of the most curious issues of TOGG, which will be fully launched in March 2023, has been its sales policy. According to experts, the industry will experience a serious transformation, and traders operating in large areas will not be there in the new era. In the near future, vehicles that are dropped in malls or street shops are expected to be sold online.
TOGG STATEMENT BY ERDOĞAN
President Recep Tayyip Erdoğan said in his recent statement on the matter: “Let’s come to one last point; In the marketing process, in terms of marketing techniques, something like that might be conceivable, but it’s not an issue that has been discussed yet. Of course, after all the cost analysis and so on, they have a certain roadmap. According to this roadmap, in what time and with what numbers we should bring it to market, if these prices are subject to change, we will announce them after these studies.”
DEALERS BECOME COMMISSIONERS
Indeed, some details of the brand’s sales strategy, revealed at the Togg ceremony on October 29, herald the shift in the industry. According to TRT news, journalist Emre Özpeynirci believes it is wrong to reduce the transformation of the automotive market only to the development of technologies and changing shopping habits. In his opinion, the main problem is that the current order is not very sustainable.
Özpeynirci, who mentioned that storage costs have risen too high, underscored the factors such as supply problem and storage load that have increased with the pandemic. According to Özpeynirci, who mentioned that dealers in serious financial difficulties bought many vehicles to display in their showrooms, a structure is envisaged in which dealers will essentially be “brokers” in the new era.
ANY UNSOLD VEHICLE LOSS
Özpeynirci explained that in the current system, every day there is a “loss” for the vehicles that the dealers cannot sell: “The goal is to remove all these burdens in the new system that turns dealers into brokers. In the new period, dealers will have a structure that receives a commission from the sale of the vehicle, plays a role in delivering the vehicle to you, and plays a role in after-sales service.
CARS ARE ALSO BUYED ON THE INTERNET
Emre Özpeynirci also mentions that we live in a time where almost every product can be bought online and he speaks of the expectation that cars will be bought this way in the near future. Anyone who wants to buy a vehicle in Turkey has a few habits… going to the dealership, getting behind the wheel of the vehicle, examining every part carefully and even taking a test drive there if possible.
One of the details that became clear at TOGG’s October 29 ceremony was the information that the brand would be conducting these processes through “points of contact”. Of course, this situation “Won’t it be possible to examine cars in the way we used to want?” brought the question.
CONTACT POINTS WILL BE ESTABLISHED
Özpeynirci further explains that the vehicles can be examined in detail in the new system:
“This is exactly what the contact points will be for … Yes, in large areas it will not be possible to examine several vehicles at once. But we will see the few vehicles that are at the touchpoint up close. We’ll get into it, look at the driving position, feel the quality of the interior materials, take a closer look at the exterior. The contact points to be set up for this business can be in the shopping center or in a street shop. Under the current conditions, car dealerships are usually located just outside the city. But in the new era, even in a very busy place like Istiklal Street, we will be able to encounter a brand’s touchpoint. As before, anyone who wants a test drive can make an appointment and experience the vehicle in an area that the brand deems appropriate.”
WHAT WILL THE DELIVERY PROCESS BE LIKE?
Özpeynirci “The dealer will give you a date and you will receive the vehicle from a point that is yet to be determined.” says. The other option is to receive the vehicle directly at your home or place of work for a certain fee.
THE FIRST POINT OF CONTACT WILL BE IN ISTANBUL
It is known that TOGG will adopt a different strategy during this time when the merchant system is changing. The brand will initially set up 20 “points of contact” across Turkey. Here it will be possible to drive a limited number of vehicles and personally experience their technology. Özpeynirci mentions that contact points can take on different tasks in the post-sales process:
“TOGG’s first contact point will be set up in a shopping mall in Istanbul. 19 more points are expected to open by the end of 2023. There is no sale here. Everything will go online. Deliveries are also made via these 20 points we have mentioned. The contact points are also used for after-sales. If you need service for your vehicle, come here and benefit from after-sales services. In any case, electric cars do not need to be serviced as frequently as internal combustion engines. It will mainly be a software update. Most of this can be done online. Therefore, TOGG follows a very correct strategy. I think other brands will follow suit.”
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