Audi SA aims to play to its strengths to retain volume in a premium market that has contracted sharply.
During a recent briefing held at the marque’s flagship showroom in Sandton, executives shared what they believe is an uncomplicated strategy to hold second position in local premium passenger car sales.
Widening the gap ahead of Mercedes-Benz is the brand’s target, a more plausible ambition than vying for the volumes achieved by premium market leader BMW.
Audi SA’s leaders spoke of efforts to keep existing owners within the brand, as well as conquest sales through new products and financing options that play to affordability.
While its direct German rivals have the competitive advantage of manufacturing locally, Audi’s range is fully imported.
“We sold 5,350 cars in 2025, a premium market share of 17%. We managed to overtake Mercedes-Benz as the second position brand; in this year we are holding on to that number two position,” said MD Markus Schuster.
Schuster said that as of end March, Audi had 1,500 sales, representing a market share of 15%. He said the Audi Sport division, comprising S and RS models, remained a particularly successful offering — with SA being the third biggest RS market in the world.
The plug-in hybrid segment in SA shows the biggest growth potential in the premium market. It makes sense because there are certain challenges to battery electric vehicles in the SA market
— MD Markus Schuster
“The plug-in hybrid segment in SA shows the biggest growth potential in the premium market. It makes sense because there are certain challenges to battery electric vehicles in the SA market.”
While Schuster trumpeted Audi’s edge over Mercedes-Benz in 2025, figures from automotive business council Naamsa indicates the three-pointed star brand had the upper-hand recently. But both firms see a considerable sales gap between BMW.
Last month BMW sold 1,588 units (reported inclusive of Mini); Mercedes-Benz recorded 506 vehicles and Audi sold 450 units.
In February, Audi sold 319 cars, Mercedes-Benz reported 459 units and BMW led with 1,237 sales.
As noted by Naamsa, the figures supplied for BMW and Mercedes-Benz in January and February are estimates.
According to Asif Hoosen, head of retail, planning and supply chain, the phasing-out of the current Q3 and Q5 models means “stock and mix imbalances” will result in a lower share in the first half of the year. When the new iterations of both models arrive in July and September respectively, an uptick is anticipated.
Following these additions, Audi will release the new RS5 sedan and Avant, which will be its first plug-in hybrid offering locally.
The all-electric RS E-Tron GT Performance, which was recently updated, will be made available on an order-only basis.
In 2027 the brand plans to introduce the RS3 Competition Limited, A6 Allroad, the all-new Q7 and Q9. The electric E-Tron range will expand with the A6 Avant and Q6.
Hoosen remarked on the significant decline of the total premium market over the past decade.
“In 2020 it came to a level of 31,000 cars but has pretty much stayed flat; we don’t see that fundamentally changing in the long term. The industry has undergone structural change in terms of the number of brands in the market and number of models on offer — it is highly fragmented,” he said.
“We as a brand are good for a corridor of 20% to 25% market share, given we don’t produce locally. If you do 20% of 32,000 that’s 6,500 cars — we could range anywhere from there to 7,500 cars. With that, we can run a very good business in SA, a viable and profitable one, for ourselves and our dealers.”
Hoosen noted that the Covid-19 pandemic scuppered the brand’s projected growth plan.
“In 2020 we were unlucky in a way — we had the freshest portfolio at the time, but unfortunately Covid happened and we lost the benefit of that. Then the portfolio began ageing, the other brands had newer cars and at the same time, the influx of models from the Far East.”
He acknowledged the arrival of Chinese brands but did not view them as direct competitors.
“We are watching the Chinese brands and what they are doing, but success in the motor industry is not only dependent on selling a new car — it is dependent on the service, parts supply, residual values. You have to be established in that space over time to be successful in the motor industry.
“Customers at the end of the day will vote with their wallets, the ability to offer financial products based on residual values — these are the strengths legacy brands have because they have been established over time.”
Reduced volumes were also as a result of Audi’s changing portfolio. This included an entry-level A4 model that was more accessible to the wider market.
The brand’s head of aftersales and dealer network management, Ashley Reddy, said in 2013 the premium car market in SA accounted for as many as 90,000 units — and Audi’s dealership network reflected this activity.
In 2013 Audi had as many as 45 dealerships and sold almost 20,000 cars with a market share of 24%.
Last year it rationalised its network. It now has 33 dealers, of which 24 are full function, offering new cars, used cars, service and parts. Three are pre-owned and service dealers. And six are service dealers exclusively.
Reddy said some retailers will adopt a multi-franchise approach with Volkswagen and the group’s motorcycle brand Ducati.
Some dealership franchisees have both Audi and other premium brands like Mercedes-Benz within their portfolio.
“What we would never allow is the sale of different brands from the Audi showroom.”
Reddy punted the brand’s Freeway Plan service and maintenance packages, which offer extensions as long as 15 years or 300,000km. She said in 2025 the company sold 10,000 extensions.
“Customers are telling us that instead of buying into other brands, they are choosing to stay with Audi.”
Currently overseeing Audi SA’s marketing activities, Tashta Bhana said the brand’s Open Haus campaign launched in March translated into a 70% increase in customer test drives.
A competition tied in with Audi’s F1 entrance will see one winner given the chance to attend a live race.
Separately, the brand continues to offer its Audi Experience driver training programme at Kyalami. Buyers of RS models get complimentary attendance to the full-day session, while other enthusiasts pay R16,100 for a ticket.
“The big differentiation between our programme and others’ is that ours is completely self-driven, led by an instructor in a car at the front,” said Bhana.
The brand plans to overhaul its digital touchpoints in 2026, including a revised website and enhanced smartphone app.
TimesLIVE
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