Audi opens Singapore CBD retail location in pivot to direct sales
German luxury brand now sells to consumers online and in person, not through dealers
AUDI opened its new flagship showroom in Singapore on Wednesday (Feb 12) evening, completing its shift to selling cars directly to consumers in the Republic – the first place in the world where it is doing so.
Audi Singapore managing director Markus Schuster said: “Singapore is the first Audi market globally to fully switch to a direct-to-consumer business model, affirming the strategic importance of the Singaporean market for the brand.”
Porsche completed a similar move in early 2024, taking over retail business from its then-dealer Eurokars and setting up its own lifestyle-heavy location at Guoco Midtown.
But the majority of car sales in Singapore are still done through the traditional franchise dealership model.
At the crossroads
Located at Cross Street Exchange in the Central Business District, the Audi House of Progress opens to the public on Feb 15.
Audi declined to comment on the cost of developing the approximately 10,000-square-foot space.
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At the opening, Audi debuted a new version of its A5 saloon, with six other models also on display.
With the opening of this showroom, the German luxury brand has completed the process of taking over retail sales in Singapore from former authorised dealer Premium Automobiles. It now offers its cars for sale online and through this permanent physical retail outlet.
Audi began its shift towards direct sales in the second half of 2024, beginning with direct online sales of the Q4 e-tron electric vehicle (EV) last October. This was followed by offline sales of a limited range of models from a temporary retail space in Aperia Mall in Kallang.
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Premium Automobiles, owned by businessman Hadi Tanaga, remains Audi’s partner in aftersales and servicing. It had been the brand’s authorised dealer since 1999, but this status expired on Jan 1, 2025.
Industry sources disclosed that Premium began clearing its remaining stock of Audi cars in the third quarter of 2024, and ceased new Audi sales by that date.
Audi’s former showroom, a 32,903-square-foot facility at 281 Alexandra Road, opened in 2012. It is now a showroom for Premium’s recently acquired China EV brands Deepal and XPeng.
Audi’s service centre run by Premium, at 55 Ubi Road 1, continues operating.
Getting in touch
In an interview on the TransportBT podcast in October, Schuster said that Audi’s new approach will enable the brand to interact with its customers more effectively and drive sales.
Through talking to customers, Audi found that the combination of an online direct sales platform and a physical experience centre was “crucial” for future customer expectations, he said.
He added that having more elements – such as sports, dining and lifestyle – in the showroom would improve customer experience and enable the brand to interact with both potential and existing customers.
In addition to sales consultation areas with interactive displays and a themed showcase of high-performance and historic cars, the new showroom includes a bar and cafe managed by the Burnt Ends Hospitality Group, and an area where customers can play on a golf simulator from Trackman.
This year, Audi will introduce new or updated versions of 16 models, including six EVs. But it has faced flagging sales in recent years, both in Singapore and around the world.
In 2024, its total sales dropped 11.8 per cent to 1.7 million cars, due to factors such as ageing models, increased competition, challenging economic conditions and supply issues.
In Singapore, its registrations dropped to 596 in 2024, having trended down from a high of 2,941 in 2018.
When asked if the direct-to-consumer approach could be used in other Asia-Pacific markets, Schuster did not respond directly, but said that the move is a “critical pilot initiative amid a rapidly-evolving global automotive landscape”, and stressed that there were “highly individualised and specific” conditions across the region.
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