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Singapore vehicle sales expected to grow fastest in Asean: BMI
SINGAPORE will see the fastest rise in vehicle sales in Asean with an average annual growth rate of 20 per cent till 2016.
The country is now in the process of replacing vehicles due for deregistration after seven years of decline between 2007 and 2013, which would result in an average annual sales growth of 30 per cent from 2015 till 2019, said BMI Research in a report. "This will make Singapore the standout growth market in the Asean region," it said.
Mass brands will do better this year as more COEs become available in the smaller "A" category, and premium models get placed in the next band.
Japanese cars will also gain a price advantage with the weak yen, said BMI. Already, they have dominated car sales in the first four months of 2015, with four out of five top brands being Japanese.
Toyota Motor took the lead with over 800 units, while Honda Motor, Mazda Motor and Nissan Motor were placed third to fifth. Mercedes-Benz was placed second, having benefited from some of its models being small enough to remain in Category A.
The sunny prospects for Singapore's vehicle market contrast with the weaker markets of Indonesia and Malaysia. High interest rates and stricter regulations have weighed down sales growth in Indonesia, while a subdued economic outlook and the introduction of a new goods and service tax (GST) have resulted in lower growth in Malaysia.