BMW Group, which transitioned Mini to the agency sales model in 2024, had planned to introduce the same system for its core BMW brand at the beginning of 2026. However, the automaker is now facing delays. Unlike Volkswagen, which recently reversed its decision on agency sales, BMW remains committed to the transition.
What is the Agency Model?
The agency sales model has sparked debate within the automotive industry. Traditionally, new vehicles have been sold through dealerships, where the dealer acts as the direct seller to the customer. The agency model shifts this structure, making the automaker itself the contractual partner for buyers.
Under this approach, dealerships function only as intermediaries or sales agents. Instead of negotiating individual prices, they receive a fixed commission for each vehicle sold. This change is intended to give manufacturers direct access to customers, ensure uniform pricing, and reduce the financial risks for dealers—though it also limits their profit margins.
BMW’s Gradual Rollout and the Delay
BMW first announced its transition to the agency model in October 2023, rolling it out initially for Mini. The process began on January 1, 2024, in Italy, Poland, and Sweden, with Germany joining on October 1, 2024.
From the start, BMW planned to extend this model to its main brand in early 2026, launching it simultaneously in several European markets, including Germany. However, according to Automobilwoche, this timeline is now being revised. A BMW spokesperson confirmed that the company is making “minor adjustments to the schedule for the market launches” to “ensure the best possible implementation of processes while maintaining the highest quality standards.” Despite this, BMW has not provided a new official launch date for the model.
Commitment to the Agency Model Despite Industry Uncertainty
Despite the delay, BMW insists that the agency model is the future of vehicle sales in Europe. “The true agency model is the sales model of the future for Europe,” a company spokesperson stated.
This firm stance comes at a time when uncertainty is growing in the industry. In December 2024, Volkswagen announced plans to phase out its agency sales model in early 2026, just six years after introducing it in April 2020. However, VW had only applied the model to its electric vehicles, while other powertrains continued under the traditional dealership system. This dual approach led to confusion and frustration among dealers, as they had to manage two separate sales structures—one for electric models and another for conventional vehicles.
Why is BMW Delaying the Transition?
BMW’s delay appears to be a precautionary measure to avoid the issues that arose during Mini’s transition to the agency model. Reports indicate that the Mini rollout faced significant challenges, primarily due to technical and process-related difficulties. Some IT systems were not fully equipped to handle all purchase scenarios, leading to disruptions in sales operations. As a result, BMW had to make continuous adjustments while the new system was already in use.
Given that BMW’s core brand accounts for seven times as many new registrations as Mini, the company is taking extra steps to ensure a seamless transition. Additionally, BMW vehicles generally have higher price points than Mini models, making any sales disruptions more financially significant.
By taking more time to refine its processes and IT systems, BMW aims to prevent similar setbacks when implementing the agency model for its flagship brand. While the exact timeline remains uncertain, the automaker remains firm in its commitment to shifting away from traditional dealership sales.
