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Amid declining sales, Audi closes several service centers in Korea

아주경제 Kim Dong-young 수습기자
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Amid declining sales, Audi closes several service centers in Korea

서울맑음 / -3.9 °
This photo shows German carmaker Audi's e-tron GT quattro. Captured from Audi Korea website

This photo shows German carmaker Audi's e-tron GT quattro. Captured from Audi Korea website




SEOUL, Sept. 4 (AJP) - German luxury automaker Audi is grappling with declining sales in Korea, leading to the closure of several local service centers.

Audi's new vehicle registrations in Korea from January to July this year totaled 4,524 units, marking a 59.4 percent decrease compared to the same period last year, according to data from the Korea Automobile Importers & Distributors Association (KAIDA).

In July, Audi registered 921 vehicles, placing seventh among imported car brands. This ranked it behind Swedish carmaker Volvo Cars (1,411 units), Toyota's luxury brand Lexus (1,108 units), and fellow German manufacturer Porsche (1,012 units).

The number of Audi service centers nationwide has dropped from 40 at the end of last year to 35 as of July, with several closures in Seoul, including the prominent Yeongdeungpo service center, which ceased operations on Sept. 1.

Dealers attribute the downturn to Audi Korea's aggressive sales targets set last year. "Due to misguided sales policies, dealerships engaged in excessive discount competitions, resulting in significant losses," said one car dealer.

Audi Korea initially set an annual sales target of 31,950 units early last year, later revising it down to 21,500 units in September 2023. However, actual sales reached only 17,868 units, with dealers estimating a total loss of about 116.3 billion won ($86.6 million).


"The termination of some centers is being pursued by the respective dealerships as a means of improving management efficiency and is proceeding based on each dealership's decision,” the company said.
Kim Dong-young 수습기자 davekim0807@ajupress.com

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