On exactly how many dealerships would eventually be affected, Audi did not want to speculate, but it did emphasise that the optimised footprint strategy has started and should ensure retail presence and long-term partner viability.

The initiative is collaboratively agreed, supported and implemented together with the brand’s investors and retail partners. Scaled retail concepts and increased digital integration should support dealer partners in managing costs.

A pivotal development in the business transformation is the relocation in June this year of Audi Centre Sandton to an exceptional new location. It will serve as Audi’s new flagship store and stand as a reflection of the company’s strategy alignment.

Audi says the premium automotive sector has faced significant pressures in recent years, marked by a notable buying-down trend driven by high inflation, rising interest rates and exchange rate weakness. These factors have intensified both affordability pressures on the consumer side and pricing pressures on the manufacturer side.

This has prompted buyers to explore alternative options from new brand entrants, primarily targeting the price-sensitive volume segment with well-equipped vehicles, despite these brands often having a limited track record potentially affecting residual values and consumer experience.

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

Audi says it remains committed to its strategy of adapting to market conditions while ensuring premium service delivery to its customers with different initiatives.

This includes:

• Audi Freeway Plan Extensions: Offering up to 15 years and 300 000km of coverage.
• Special Editions: Introducing bespoke model trim lines, such as the Black Edition and Urban Edition, with popular options as standard.
• Enhanced Audi Assured offerings: Providing guaranteed residual value options for all models, including Black and Urban Edition variants, allowing customers flexible contract durations, mileage options and end-of-term choices such as returning, renewing or repurchasing.

In cases where adjustments have been or will be made to specific areas within the retail network, concerned customers can contact the Audi Customer Interaction Centre on 0869-434-838 to receive support and assistance with redirecting them to the closest Audi partner. A complete list of Audi South Africa dealers and their contact details are available on www.audi.co.za