Volvo Cars plans to expand its dealership network in South Africa despite the challenges facing the luxury vehicle segment.
Volvo Cars plans to expand its dealership network in South Africa by opening a new location in Century City, Cape Town.
The Century City location is part of the Super Group Dealership family and plans to bring Volvo’s renowned safety and electric-vehicle technology to the city.
The latest location was chosen for its role as a business and retail hub, with the massive Canal Walk shopping centre nearby. The area is also home to several other luxury dealerships.
“Volvo Cars Century City is more than a dealership; it’s a destination for innovation, safety, and sustainability,” said Christopher Diamond, General Manager.
“We look forward to welcoming more customers and strengthening Volvo’s presence in Cape Town.”
Volvo Cars South Africa is also seeking additional opportunities in regions with strong demand for premium vehicles rather than consolidating its footprint.
Despite the struggling economy, Volvo said that the premium market continues to attract new entrants and investment.
The brand said broader vehicle sales are under pressure from rising interest rates and the cost of living, with customers now prioritising service quality and ownership experience over price alone.
“Cape Town’s automotive landscape is undergoing a swift evolution, driven by increasing consumer demand for sustainable luxury and intelligent design,” said Grant Locke, MD of Volvo Cars South Africa.
“Volvo Cars Century City stands at the forefront of this shift, serving as a dedicated haven for motorists seeking progressive Scandinavian engineering.
Locke added that additional sites are currently being assessed in identified growth markets, with further announcements expected when those plans are confirmed.
The Swedish automaker will also continue to work with established dealers, including Super Group Dealerships, who bring local expertise.
Volvo said its strategy will enable the company to expand while upholding its premium standards and service quality.
As Volvo moves aggressively towards its global electrification goals, its Century City dealership will also serve as a catalyst for electric vehicle adoption.
The company said that South Africa remains a priority market, with its continued investment in retail infrastructure demonstrating confidence in local market conditions.
The new announcement from Volvo comes just a year after it announced plans to reduce its dealership network from 19 to just seven in South Africa.
The manufacturer previously said that the reduction in its dealership network was based on a focus on exclusively strategically located, high-performing dealers.
Volvo was one of several luxury automakers that announced plans to reduce its dealership network, which included Audi.
The German manufacturer said the decision to close dealerships was due to a notable buying-down trend driven by high inflation, rising interest rates, and exchange-rate weakness.
“This has intensified both affordability pressures on the consumer side and pricing pressures on the manufacturer side,” said Audi.
“This has prompted buyers to explore alternative options from new brand entrants primarily targeting the price-sensitive volume segment with well-equipped vehicles.”
The luxury German car brand BMW has slowly reduced its dealership network in South Africa amid the struggling consumer.
While luxury European manufacturers are slowly closing dealerships, there has been a noticeable rise in dealerships with Chinese Brands, including Chery, Haval and GWM.
Notably, Geely has also rapidly expanded its dealership network in South Africa, selling highly popular, relatively affordable electric vehicles. Geely is the owner of Volvo Cars.
