Audi South Africa is aiming to maintain its second place in the country’s premium market, and also boost its market share, despite challenging times in the automotive industry and a reduction in this segment.

At a media engagement last week, Audi South Africa head Markus Schuster indicated the manufacturer sold 5 350 vehicles last year, enabling it to overtake Mercedes-Benz to become the second biggest German premium market brand in South Africa, at 17%. This was supported by its top selling models – the A1, Q3 and Q5.

Audi South Africa’s first-quarter sales this year sit at 1 200 units, lowering its share to 15%, with part of this decrease attributed to stock and mix imbalances.

Audi South Africa retail, planning and supply chain head Asif Hoosen informed that this is expected to improve from July onwards, with the launch of the new Q3, as well as the launch of the new Q5 in September.

The RS5, slated for the end of the year, is also expected to boost volumes.

He explained that the first quarter’s results were good, given the state of the country’s premium market segment, which had reduced significantly over the past decade, owing to structural changes causing fragmentation.

No material improvements are expected, with the segment anticipated to operate within a now stabilised range of between 30 000 and 35 000 cars a year over the next five years, well below previous highs of about 90 000.

Despite this, Audi South Africa believes its share of this segment allows it to still run a viable and profitable business in the country, especially given that it does not produce locally, Hoosen averred.

The company’s drive to maintain its second-place position is being pursued through a two-pronged approach of ‘loyalty’ and ‘conquest’, entailing a focused product offensive, making premium more accessible, providing a premium customer experience and strengthening the Audi ecosystem. Hoosen explained that Audi South Africa is focused on elements within its control.

The company would also not endeavour to match BMW, which held almost 50% of the market last year, and has competitive advantages including local production.

New products set to launch this year include, as alluded to, the new Q3 and new Q5.

The RS5 would launch towards the end of the year. Schuster acclaimed that Audi South Africa was “very excited about this fantastic car”, which would also be the company’s first plug-in hybrid in the country.

He highlighted that the company would look to launch more plug-in hybrids in South Africa, with this seeing growth in the country in the premium segment, as it accounts for range anxiety, with charging infrastructure still being built up.

In 2027, a new Q7 and Q9 would be launched, as well as the new RS6 Sedan and RS6 Avant models.

The company is also launching the Q6 e-tron. Initially meant to be launched this year, this had been delayed to 2027 to align with significant improvements next year to the product range and battery, Schuster explained. 

On the subject of cheaper Chinese vehicle imports, which had been a topical issue for the industry, Hoosen said the company was not overly worried, but was cognisant of it and monitoring the situation, as this did put pressure on the general market to move faster and improve.