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Years ago, when a major new electric vehicle manufacturer began selling its automobiles, it pioneered a new direct-to-consumer sales strategy that removed the independent dealer network from the equation. Consumers could shop, configure and order their vehicles online as well as apply for and arrange financing. No salespeople or showrooms were needed as the price paid online was the final price.&nbsp;

Initially rebuked by the auto industry, what is known today as the direct-to-consumer (D2C) sales model has proven to be a successful strategy. Many within the industry consider it a better business model with considerable financial advantages.

It&rsquo;s now well known that the leading EV manufacturer realizes significantly higher operating margins due in part to the D2C sales model they employ. They can strategically lower their prices and still cultivate higher profits. &nbsp;&nbsp;
Traditional automakers have noticed this, and many plan to adopt a D2C model in some form to reduce costs and stay competitive with newer EV companies. Some also realize that it will be a challenging transition, especially within the U.S. In many states, laws governing that automakers sell through franchised dealerships reduce the opportunity to sell direct, which most of the newer EV companies have been able to get around.

A few significant automakers have already established plans to sell specific select models directly to consumers.

One major automaker is rolling out a new digital sales platform that will allow customers to buy its products either entirely online, in dealerships or a combination of both.

Another prominent company is introducing a &ldquo;build-to-order&rdquo; model where customers can build and pre-order their vehicle online and pick it up when it&rsquo;s finished.

D2C is steering the course