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Home  >>   Daily News  >>   Singapore News  >> Automotive  >> Premium cars make up 70% of S'pore car sales
NEWS UPDATES Asean Affairs   10 September 2013  
Premium cars make up 70% of S'pore car sales

LUXURY and premium brands have crowded out mass-market makes in Singapore's small-car segment.

And imminent changes to the certificate of entitlement (COE) system that seek to give mass-market cars a more equal footing may take time to reverse the trend, if at all.

According to trade figures obtained by The Straits Times, brands like Mercedes-Benz, BMW and Volvo accounted for 70 per cent of new car sales in the up-to-1,600cc segment in the first seven months of the year.

This was up from less than 50 per cent in the same period last year, and less than one per cent five years ago.

The best-selling brand in this segment in the January-July period was Volkswagen, with nearly 1,500 cars.

This was followed by Mercedes-Benz with about 1,200, and BMW with some 500. The numbers excluded parallel imports.

Collectively, the market share of these brands has been growing in recent years on the back of a couple of factors.

First, many brands typically European started making cars with smaller engines about five years ago to meet stricter emission standards in Europe.

Also, COE prices have soared in the last three to four years, allowing sellers with fatter margins typically those representing luxury and premium brands and buyers with deeper pockets to outbid others for COEs.

The COE price for cars up to 1,600cc is now above $77,000, up from $68,000 the same time last year, and $9,500 five years ago.

The upward spiral has been fuelled by a shrinking supply of certificates.

The government is reviewing the COE system to level the playing field for sellers and buyers of bread-and-butter cars such as the Japanese and Korean brands.

When announcing a review earlier this year, Transport Minister Lui Tuck Yew said the Government wants "to make sure Category A (COE for cars up to 1,600cc), which is intended for buyers of smaller, budget cars, retains its original purpose".

The government is expected to announce changes soon.

But motor traders are not holding their breath for any immediate impact. Ron Lim, general manager of Nissan agent Tan Chong Motor, said: "The situation could remain skewed or worsen between the time of announcement of changes and implementation."

He added that many mass-market brands mainly Japanese are also hard pressed to clear existing stock before a new vehicle emission standard comes into effect from January.


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ASEAN  ANALYSIS

This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 


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