AUDI is defying the Western Australian car slump by announcing a second Perth dealership, investing $13 million to establish one of its distinctive “terminals” in a busy retail automotive district.

To be owned and operated by the existing north-of-the-river Audi Centre Perth principals, David Collins and Peter James, the second centre last week received council approval in Melville, a car dealership hub south of the Swan River.

Audi currently has one Perth outlet compared with Mercedes-Benz and BMW, which each have two. AHG owns the two Mercedes showrooms and the Regent Group owns the two BMW outlets.

In detailing plans for the new Audi dealership, Mr Collins said: “It’s time.

“We were market leaders last month, outselling BMW and Mercedes-Benz’s non-commercial range.

“We have a lot of customers south of the river and expect that the new dealership will increase new-car sales for us by 20 per cent.”

The new terminal will be smaller than the flagship complex in Osborne Park, built in 2012, which has room for 21 new vehicles. The Melville terminal will have space for 16 new vehicles.

“It will have 15 service bays and will employ 40 people,” Mr Collins said.

The new terminal will start construction early next year and is expected to be completed in the first quarter of 2017.

“The Melville council has been very supportive of our move into the area. We initially looked at a site on the main Leach Highway thoroughfare but because of the very heavy traffic, were concerned about access by our customers,” Mr Collins said.

“So we chose a site on North Lake Road, which is not as busy and easier for customers to access.”

Audi has sold 1329 passenger cars and SUVs in WA for the year to October 31. This compares with BMW in WA at 1322 and Mercedes-Benz at 1620 noncommercial vehicles.

For the month of October, Audi in WA sold 143 passenger cars and SUVs against BMW (120) and Mercedes-Benz (115).

Part of the strength of Audi has come from its SUV range. Audi in WA has this year sold 547 SUVs compared with BMW (522) and Mercedes-Benz (353).

“As a brand, Audi has had a lot of success in niche products,” Mr Collins said.

“The range is also spread out in terms of pricing, from $29,990 for an Audi A1 through to $465,000 for an R8.”

By Neil Dowling