Mercedes-Benz introduced its “Retail of the Future” strategy in Korea in April, which standardized vehicle prices nationwide and began selling its entire lineup online.SCREEN CAPTURE
Online car sales are gaining ground in Korea as imported brands look for cheaper ways to reach customers. The shift is also becoming a global trend, with Hyundai Motor expanding online sales beyond the United States.
French automaker Peugeot recently opened a store on Naver, Korea’s dominant online browser and began selling its full Korean lineup online, including its flagship 3008 model.
Peugeot is the first automaker to offer every model in its lineup through Naver's Smart Store. Customers can browse vehicle information and pay a deposit on the platform before being connected with a dealer to complete the purchase and delivery process.
Jeep has also sold select models, including the Wrangler Goldilocks, through Naver's platform.
Cost is one of the main reasons behind the shift. Brands with relatively low sales volumes face a heavy burden when expanding offline sales networks, while online channels offer a cheaper way to reach customers.
Peugeot sold 979 vehicles in Korea last year and 403 through August this year.
“We want to expand our contact with Korean customers through Naver, a shopping platform they are already familiar with, rather than relying on our own platform,” a Peugeot representative said.
Electric vehicle brands led the move toward online car sales in Korea.
Tesla sells cars entirely through a direct-to-consumer online model with no dealers or sales representatives in the middle. Customers handle the entire process themselves, from obtaining a price quote and signing a contract to applying for subsidies, registering the vehicle and receiving the delivery.
Peugeot vehicle listings are shown online on Naver.SCREEN CAPTURE
Swedish EV maker Polestar provides consultations at showrooms but follows the same online sales model as Tesla.
The auto industry once viewed online sales as a double-edged sword. Carmakers could cut costs tied to showrooms and sales staff, but customers uncomfortable with the process could walk away.
Strong sales by Tesla and Polestar, however, have helped demonstrate that online car sales can work in Korea.
Mercedes-Benz Korea also began selling its entire lineup through its own website in April. The company had already introduced online sales in 12 other countries before bringing the system to Korea.
The move is part of its “Retail of the Future” strategy, which offers customers the same prices and services regardless of where they live or which dealer they use.
Tesla Model X displayed at an event in Daegu in 2018.YONHAP
Fixed pricing is also a key condition for online car sales.
Prices and services for imported cars often vary by dealer, but Mercedes-Benz, Peugeot, Tesla and Polestar apply the same discounts regardless of where customers make a purchase.
“Sales dipped slightly at first because some customers were unfamiliar with fixed pricing,” a Mercedes-Benz representative said. “But as the system has settled in, more customers say they like not having to shop around across multiple dealers.”
Other automakers agreed.
“Customers tell us they no longer have to worry that someone else may have bought the same car for less,” a Polestar representative said.
Online car sales are also expanding overseas.
Hyundai Motor's cars are sold online on Amazon Auto.SCREEN CAPTURE
Hyundai Motor and Kia sell vehicles in the United States through Amazon Autos. The two companies also sell cars through their own online platforms in the United Kingdom.
Hyundai Motor announced that it plans to work with Amazon to expand Amazon Autos beyond the United States early next year during its 2026 CEO Investor Day event.
Industry sources see the growth of online car sales as part of a broader shift that gives automakers greater control over customers and pricing.
“Dealers have effectively controlled information about end customers and final prices,” an auto industry source said. “Online sales give automakers a way to manage customer information, pricing and inventory directly.”
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
