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August 22, 2019 06:30 AM

Renault begins online sales in Russia with Yandex

Nick Gibbs
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    The SUV is the first vehicle offered by Renault and Yandex for sale online.

    Renault has begun selling cars online in Russia in partnership with local tech giant Yandex.

    Renault said the first car sold by its new online sales platform was the Arkana SUV costing 1.5 million rubles (21,200 euros).

    Yandex said the Renault platform was the first such online sales scheme operating in Russia.

    Yandex also works with Renault, Tesla and BMW in Russia taking deposits from customers online for new cars with advance demand, such as the Tesla Model 3 and the BMW X7, but this is the first time the company has taken full payment for vehicles.

    Customers who purchase via the new platform will receive the vehicle delivered to an address of their choice. Customers can also request a test-drive prior to purchase.

    "It is truly innovative as people in Russia have never bought cars online before," a Yandex spokesperson said.

    Customers will have to make their own arrangements to finance the purchase. New cars in Russia are normally bought with a bank loan, Yandex said.

    Automakers across Europe are trialing online sales as part of a push to better connect with customers digitally.

    Mercedes-Benz has said it expects a quarter of its worldwide sales to be online by 2025. "Buying a Mercedes-Benz should become as easy as ordering a book for our customers," sales head Britta Seeger said.

    In February PSA Group CEO Carlos Tavares told investors that he wants online sales within the group to increase to 100,000 by 2021 from 6,000 in 2018.

    The success of online sales is partially linked to the availability of finance on the same platform, which allows customers to shop for cars based on a monthly price.

    Trials operated by automakers including Ford, Hyundai, BMW and Volvo have centered on the UK, which has one of Europe's highest rates of purchase with a finance deal.

    Renault's rollout of online sales in Russia will likely face fewer barriers in terms of acceptability to customers because of its partnership with Yandex, which is often referred to as Russia's Google.

    Renault has also partnered with Yandex to install Yandex.Auto onto its car's infotainment systems, giving customers access to the automaker's sat nav, search engine, Russian-language optimized voice assistance and music.

    Yandex also owns one of Russia's biggest used car websites, Auto.ru, which it bought in 2014.

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