Parallel imports treble on COE, Vezel boom

Singapore

REGISTRATIONS of parallel-imported (PI) cars trebled in the first six months of this year, outpacing the rest of the auto market with explosive growth.

The number of PI cars registered between January and June was 10,082, a 210 per cent jump from the 3,256 units in the corresponding period last year.

By contrast, the total industry volume - all new cars put on the road in the first half of 2016 - climbed only 68 per cent to 43,423 units.

The H1 surge in the grey market was driven mainly by the Honda Vezel's immense popularity, as the PI industry rode on steadily expanding quotas of certificates of entitlement (COEs).

From January to June 2016, a total of 5,550 Vezels (see table) were registered collectively by parallel importers across the island, enabling the Honda brand to widen the gap from its closest PI competitor, Toyota. This means every other PI car sold so far this year was a Vezel.

The Vezel's sales strength also made this compact Honda SUV the top model in Singapore.

Among authorised distributors, the Toyota Corolla Altis sold by official importer Borneo Motors Singapore was the No 1 model in H1, with 2,816 units registered.

The Vezel is Japan's domestic version of the HR-V, which is the export model offered by authorised Honda distributor Kah Motor.

Vincent Tan, managing director of parallel importer VinCar, said: "Parallel imports have become more popular this year mainly because of the Vezel."

He attributes the strong demand to the Vezel's perfect combination of "price, shape, size and engine".

At an affordable price of about S$109,000 with COE currently, it is an attractive option for the majority of replacement buyers.

The seven-seat Toyota Sienta climbed one position from Q1 to No. 3 in H1 (see table) in this price-driven segment. The compact MPV is now listed at about S$108,000 with COE.

But the biggest mover in Q2 has been the Honda Shuttle five-seater station wagon. The successor to the Honda Airwave jumped four places to No. 4, solely on the basis of its low S$100,000 price.

The other two models in the Top 5 are familiar nameplates that cost more - the Toyota Harrier mid-size SUV and the Toyota Alphard and Vellfire full-size MPVs.

Further down the rankings, the Toyota Estima is No. 6 with 287 units, followed by the Toyota Wish (282), down two places from No. 5 in Q1. The Toyota Axio (257) is No. 8, and the Honda Odyssey (101), No. 9.

The only non-Japanese model in the Top 10 is the Mercedes-Benz C-Class with 85 units.

Looking ahead, the Vezel will face competition from the HR-V, which is now being sourced from Japan. Previously, Kah Motor's HR-V came from Thailand, where it was assembled by Honda for the rest of South-east Asia.

When asked if this would affect Vezel sales, a parallel importer who did not want to be named replied: "Definitely."

He said the HR-V was now more attractive to prospective buyers because it is made in Japan. "Even though it will be more expensive, some people prefer to buy from the agent."