Switch to Euro 6 scales down, strips some car showrooms

Singapore

THE adoption of the new and more stringent Euro 6 emission standard has not only scaled down model lineups at some dealerships but also practically decimated a couple of others, with at least one showroom likely to stay empty until March next year.

The Euro 6 standard for petrol-engined models came into effect on Sept 1, 2017. In the run-up to the change-over, it was seen as one reason for the fluctuation in certificate of entitlement (COE) premiums as dealers rushed to clear stocks of pre-Euro 6 cars.

But now that the new emission standard is in place and COE premiums seem to have settled down, some models are missing from showrooms across the island.

They include the Honda Mobilio, Honda Accord, Nissan Teana and Nissan Almera. While the Accord will return to Singapore next year with a full model change, authorised Honda distributor Kah Motor says the Mobilio seven-seat compact MPV, which is assembled in Thailand, will be dropped.

General manager Nicholas Wong explained that the COE Category A Mobilio will not be Euro 6-compliant as Thailand retains the Euro 4 standard.

However, Kah Motor may re-occupy this segment with a Honda Freed seven-seater or a Honda Shuttle five-seat wagon.

As for the Nissan Teana mid-sized sedan and Almera compact sedan, they may have been affected by the new emission standard, but they were also discontinued partly because authorised distributor Tan Chong Motor Sales is enjoying strong demand in the lucrative SUV/crossover segment.

Over at Suzuki, the Japanese brand best known for its small cars, there is only one model left in the showroom - the Suzuki Vitara compact SUV, a 1.6-litre Cat A model.

This is after the exit of the Suzuki Swift small hatchback and Suzuki S-Cross compact crossover, which are not likely to return until next year.

But that is still one model better than Chevrolet, which will have no Euro 6 alternatives to offer until the first quarter of 2018. That is when the right-hand-drive versions of the new Cruze compact sedan, Trax sub-compact crossover and Equinox large SUV are expected to arrive.

But Alpine Group sales director David Pang is unfazed. Alpine also distributes Opel, and the German brand has seen sales skyrocket this year, so the Chevy sales team was merely reassigned.

In 2016, Opel registered 241 units. From January to September 2017, that number was 582 units, or already up 140 per cent in the first nine months.

Mr Pang said: "Our Chevrolet salesmen are now grouped with Opel because we need a bigger sales force for the growing number of models and for the new Leng Kee Road showroom.''

Alpine, whose main showroom is in Ubi, opened a branch in the main motor belt in August.

While Alpine is able to enjoy economies of scale, smaller operations may not. But one sales manager said the situation was expected and he did not have to cut his team due to the downsized range. "We allowed for natural attrition ahead of the Euro 6 replacement,'' he said.

But he added that what is more worrying is the upcoming VES or Vehicular Emissions Scheme, set to replace the current CEVS or Carbon Emissions-based Vehicle Scheme on Jan 1, 2018.

Because VES is more stringent, some models may have their CEVS rebate of between S$5,000 and S$30,000 not only withdrawn, but also replaced by a VES surcharge.

The sales manager said: "VES will hurt the trade even more. The objective for manufacturers under Euro 6 was to reduce carbon dioxide to a minimum. But they did not tweak their cars for the other four pollutants that VES will also measure.''