Cupra joins VW Group brands with pause on agency model

Cupra has confirmed it will now join the rest of Volkswagen Group's brands with a pause on operating on an agency sales model.

The decision has been made to reduce complexity for dealers within VW Group that are operating two different sales models.

A spokesperson for Cupra told AM: "Cupra has decided to migrate retail sales of its BEV products (Born and Tavascan) from the agency to the wholesale model in Europe, including for the UK.

"This is to reduce complexity for Volkswagen Group multibrand dealers operating under a dual distribution model (for ICE and BEV products).

"Cupra will continue to operate under the non-genuine agency model in markets with full range established.

"The full transition to the indirect sales model in Europe is expected to be completed in 2026."

VW Group announced back in January that its brands, other than Cupra, would pause plans to switch to an agency model and return to a tradtional franchised dealer model for the short to medium term.

VW Group is still planning to move to an agency model in the UK "in the coming years", while pushing ahead with the model in Sweden and Ireland as continued test case markets.

A recent survey revealed that seven out of 10 dealers (71%) believe an industry wide shift to the agency sales model is “effectively over”.

Startline Finance, which commissioned the survey said that while some dealers who work under agency have been moderately happy to do so, generally speaking, the motor retail sector "has been doubtful about the idea from the start and now appears to believe the strategy is unlikely to deliver the revolution that was once promised".

AM's in-depth agency model feature explored the concept and what is driving car brands to pause or abandon their agency model plans.

While the path to agency is proving even more challenging than expected, the motivation to change the way new cars are sold and distributed in the UK remains the same. OEMs are looking to claw back higher margins as they struggle to make a profit from producing new electric vehicles (EVs).

The other driving factor is the need to deliver an omnichannel experience that delivers, for new car buyers, transparent pricing and a consistent journey online and in the showroom.