Volvo Car SA (VCSA) is consolidating its Pretoria footprint with the relocation of CMH Volvo Cars Hatfield and CMH Volvo Cars Silverlakes to a new flagship facility in Menlyn.
The decision comes after the Swedish brand cut its dealership network from 19 to seven earlier this year, leaving it represented only in the major hubs of Gauteng, Durban and Cape Town. Like other premium brands, Volvo has experienced declining local sales as consumers move toward more affordable vehicles.
VCSA’s new MD, Grant Locke, said the brand needed to rightsize the network after reviewing dealer profitability, but planned to grow Volvo's presence outside of the main centres by opening facilities in Gqeberha, Mbombela and Bloemfontein. The new full-service dealership in Gqeberha is set to open on October 1 at Moffett Retail Park.
The new CMH Volvo Cars Menlyn will serve Pretoria-based customers with a premium, full-service dealership in a central and strategic location, said Locke.
It is a busy period for Volvo Cars with the recent introduction of the EX30 Cross Country electric SUV and the upcoming launches of the facelifted XC60 and XC90, and the luxurious ES90, all of which join the brand’s growing electrified lineup.
While new-vehicle sales are growing, premium brands such as Volvo, Audi and Mercedes-Benz have lost market share as motorists continue to face budget constraints. Consumers are shifting to more budget-friendly options from brands such as Suzuki and Chinese manufacturers, which offer competitive pricing and advanced technology.
The premium vehicle sector has contracted to nearly a third of its size compared with a decade ago, with 2024 marking the lowest level yet.
To adapt to falling sales, premium car brands, including Volvo and Audi, have begun consolidating dealerships and restructuring their networks.
In April, Audi SA announced it was implementing an optimised footprint strategy in the wake of pressures faced by the premium automotive sector in recent years, marked by a buying-down trend driven by high inflation and exchange rate weakness.
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