Audi South Africa looks set to shrink its dealer network

Audi looks set to join other premium car brands in shutting some dealerships in South Africa due to the segment’s declining sales.

In a press release on Wednesday, Audi SA said it had started to implement an “optimised footprint strategy that balances meaningful customer experiences with operational efficiency”.

This was to reinforce its retail presence and ensure long-term partner viability in the wake of significant pressure faced by the premium automotive sector in recent years, marked by a buying-down trend driven by high inflation, rising interest rates and exchange rate weakness.

“Scaled retail concepts and increased digital integration will support dealer partners in managing costs while maintaining high service standards for consumers,” it said.

The release didn’t say whether this meant Audi was reducing its dealer footprint but seemed to strongly suggest it. Audi SA said it had no further comment.

It stated Audi Centre Sandton would move to an unnamed new location in June and serve as Audi’s new flagship.

The premium vehicle sector has contracted to nearly a third of its size compared with a decade ago, with 2024 marking the lowest level yet. Local consumers were increasingly moving to new brand entrants, many of them Chinese, primarily targeting the price-sensitive volume segment with well-equipped vehicles.

Audi said buyers were exploring alternative options despite these brands often having a limited track record which potentially affected residual values and consumer experience.

“Compounding these challenges is the absence of a regulatory framework and incentive support schemes by the government — such as those available for battery electric vehicles in other industrialised nations — further accelerating market trajectories.

“The need exists for a comprehensive automotive strategy as well as decisive action and support from government to ease the burden on all automotive players invested in the country. While the automotive sector is a critical contributor to the South African economy, the industry continues to face hurdles such as slow and inconsistent policy implementation and insufficient infrastructure investment.”

Other premium brands have reduced their dealer footprints, with BusinessTech reporting BMW shrunk from 55 sites in 2015 to 46 at the end of 2024. Swedish brand Volvo recently announced it is reducing its South African dealer network from 19 to seven facilities.

Audi said customers affected by the changes have been contacted and informed of their alternatives and warranty, service and maintenance policies remain intact.

The Audi Customer Interaction Centre can be contacted on 0860-434-838 and a list of Audi SA dealers and their contact details are available on www.audi.co.za.

Audi has sold 1,266 new cars in South Africa so far this year, with the A1 hatchback and Q1 SUV its two most popular models.