The dramatic slowdown in sales peaked in 2024 with the market for these vehicles contracting to a third compared to what it was a decade or so ago.

The restructuring was long in the making with many factors playing a role in the declining sales – less disposable income owing to slow economic growth led to a buying down trend. Add to that the arrival of a number of value-for-money brands from the East influencing buying patterns in general although not as direct competitors to the premium brands.

But the aspirational premium brands are not gonep; they rather consolidated operations to make dealerships viable for owners. With fewer dealerships left, it could come as an inconvenience for customers notwithstanding new incentives for purchasing, servicing and royal treatment at the remaining facilities.

Dealerfloor reported earlier on Volvo with its dealership number going down more than half with a renewed focus on new-energy vehicles for the local market. At the time, Volvo Cars SA stated that the remaining seven dealerships were located in different places across Gauteng, KwaZulu-Natal and the Western Cape. Volvo also said this initial restructuring was necessary, but the situation will be evaluated for further expansion to other locations as the business grows.

Audi said earlier the premium automotive sector faced significant pressures in recent years, marked by a notable buying-down trend driven by high inflation, rising interest rates and exchange rate weakness. In the face of a shifting premium automotive market, Audi South Africa is also currently re-aligning its retail operations according to the new reality.

BMW Group South Africa tells Dealerfloor it has delivered a strong performance in the first quarter of 2025, demonstrating the enduring appeal of its product range and the resilience of its local operations.

BMW Group South Africa significantly outperformed its key premium competitors in passenger vehicle sales during the quarter. Statistics from the Automotive Business Council (naamsa) reveal the brand’s continued dominance in the premium segment with a 40.6% market share.

This success is amplified by MINI achieving a 6.2% market share, and BMW Motorrad attaining a 43.9% overall market share. This collective performance highlights the strength of BMW’s portfolio, exceeding internal targets across BMW, MINI, BMW Motorrad and Customer Support.

“Typically, dealer closures can be attributed to several factors, including consolidation to achieve operating efficiencies, scaling down sales and service retailers to service-only operations, or trading conditions. BMW's focus on sustainability, customer experience, product refinement, digital services and after-sales support, however, sets it apart, and the current retailer network is stable and resilient with no plans for further consolidation,” it states.

“While acknowledging the evolving South African economic landscape, BMW Group South Africa remains focused on delivering exceptional products and services to its local and international customers,” it concludes.

Mercedes-Benz South Africa (MBSA) says it boasts an extensive dealer network, comprising numerous Brand Centres. These are designed to provide an elevated customer experience, from their visual appeal to the quality of customer interactions. Over the years, MBSA, in collaboration with its dealer partners, has made significant strides in prioritising key market areas to ensure customers receive the highest level of service. “We will continue to monitor the development of the different market areas across the country in close and trustful partnership with our dealer partners to constantly optimise our presence.

“In addition, our online store, which is also an option for customers, offers the convenience of purchasing a vehicle from anywhere, be it the office in Johannesburg or the beach while on holiday, making the process simpler and more accessible than ever before,” MBSA tells us.

JLR's (Jaguar and Land Rover) retail strategy, centred on the delivery of a modern luxury client experience through a refined agency model, remains unchanged at this stage, which is all the manufacturer says.