South Africa’s premium car market is in turmoil. This has compelled Audi, BMW, and Volvo to overhaul their dealership networks. Sales have dropped 68% from 74,015 units in 2014 to 23,881 in 2024. Coupled with economic pressures and shifting consumer preferences, this is driving changes that have impacted dealers, employees, and customers.
Audi South Africa is adopting an optimised footprint strategy to navigate the market’s historic low.
Focused on viability
“We are committed to ensuring long-term viability through collaboration with retail partners and increased digital integration,” an Audi spokesperson stated.
At least four dealerships could close, though the exact number is yet to be disclosed. But Audi assures customers that warranties and service maintenance remain unaffected because alternative facilities will be available. The brand has urged the government to support electric vehicles (EVs).
BMW, with a 40.6% market share in Q1 of 2025, has cut its dealerships by 16% since 2015, from 55 to 46. “Consolidation reflects challenging economic conditions and a focus on operational efficiency,” a BMW representative noted.
Asian brands gaining market traction
The locally built X3 SUV sustains BMW’s lead, but affordability concerns are pushing buyers toward cheaper Asian brands like Chery and Haval, which offer comparable technology at lower prices.
Volvo Cars South Africa (VCSA) is slashing its network from 19 to seven dealerships, focusing on Gauteng, KwaZulu-Natal, and Western Cape. “This restructuring aligns with our global electrification and digitalisation goals,” VCSA’s leadership explained.
However, the move has drawn fire from the Motor Industry Staff Association and unions for bypassing labour protocols.
Customers in remote areas fear reduced service access, despite Volvo’s EV leadership with models like the EX30. “We remain fully committed to South Africa’s market,” VCSA affirmed, emphasising its sustainable vision.
Customers are price-conscious
Economic challenges high inflation, weak exchange rates, and absent EV incentives, are squeezing premium brands. Consumers are buying down to affordable vehicles, with Chinese brands gaining ground.
Thirteen Chinese manufacturers operate locally. Seven more were expected to arrive in March, but their lack of local assembly raises concerns about job creation.
The restructuring underscores a critical moment for premium automakers. Balancing cost-cutting with customer loyalty and innovation is essential. As South Africa’s automotive landscape shifts, Audi, BMW, and Volvo must adapt to economic realities and consumer demands to secure their foothold in a fiercely competitive market.
Visit SW YouTube Channel for our video content
