Queenstown Motor Group, driven by Otago brothers and businessmen Ken and Pat Cummings, will be in a brand new showroom directly opposite New World Wakatipu.
Managing director of the group, Ken Cummings has more than 38 years' experience in the motor industry in Dunedin and Invercargill.
He is looking forward to increasing the Queenstown client base.
The dealership would sell brands such as Audi, Volkswagen and Subaru, he said.
"These cars are very familiar and popular throughout this region because they are well suited to the outdoors lifestyle, the climatic conditions and mountain roads."
Pat Cummings said they were delighted with the high-profile site.
"It's highly visible and Remarkables Park town centre is an ideal location for this business. We've enjoyed a good working relationship with Remarkables Park Ltd."
He said the company's decision to make the multimillion-dollar investment in Queenstown was in response to huge growth in the region and demand for a local dealership.
"This showroom has been some years in the making. We've been watching the market and looking for the right position and right time. We expect this dealership to serve the motoring needs of the wider Southern Lakes community."
The showroom was designed by local architect David Stringer, of David Stringer Architects Ltd.
Rilean Construction will start construction on the showroom within the next few days.
The new showroom is expected to be open by Christmas this year.
