Singapore Autos Report Q1 2013
We believe the latest strength in COE prices showcases the strong demand for vehicles, a trend which we expect to continue. With the number of motor vehicle registrations crossing the one million mark earlier this year, Singapore's fleet size has grown about 30% since 2005. However, neither the high prices of COEs nor the greater congestion on roads has deterred consumers from wanting to purchase a car.
While the Land Transport Authority (LTA) has used various measures to encourage citizens to use public transport instead of purchasing cars, it has not been successful in reducing demand for cars. BMI believes Singaporeans view cars as an aspirational item. Although the city boasts an excellent public transport infrastructure, Singaporeans prefer to own cars due to the convenience and status they provide. November 2012 prices for Certificates of Entitlement (COE) saw yet another surge in the latest bidding exercise. However, this time small cars (below 1600cc) COEs saw the biggest hike of 8.7% month-onmonth (m-o-m), ending at SGD77,201. Premiums for big cars (above 1600cc) on the other hand jumped by about 7.7% m-o-m, from SGD 85,801 in October to SGD 92,400 in the current bidding. This was rather unusual as during the previous months in the year, the percentage increases in premium car COE prices mostly outperformed those for small cars.
We do not find it surprising that the largest COE price increase came from the small car segment in the latest bidding. With prices of COEs constantly rising, many consumers have been holding off on their new vehicle purchases and waiting for a correction which would create pent-up demand. However, there has been no respite in prices over the last few years and, eventually, consumers will throw in the towel and purchase a new car.
Table of contents
Chapter - BMI Industry View
Chapter - SWOT Analysis
Auto Industry SWOT
Chapter - Global Industry Overview
Global Industry Overview
Table: Passenger Car Sales 8M12
Incentive Boom For Japan, US Powers On
UK Leads As Germany Falters
Russia And Brazil Go From Strength To Strength
Chapter - Regional Overview
Chapter - Industry Risk Reward Ratings
Industry Risk Reward Ratings
Table: Business Environment Ratings -- Auto Industry Asia Pacific
Chapter - Industry Forecast
Table: Singapore Automotive Sector Registered Vehicles: Historical Data And Forecasts (CBUs)
Chapter - Company Profile
Chapter - Demographic Forecast
Table: Singapore's Population By Age Group, 1990-2020 ('000)
Table: Singapore's Population By Age Group, 1990-2020 (% of total)
Table: Singapore's Key Population Ratios, 1990-2020
Table: Singapore's Rural And Urban Population, 1990-2020
Chapter - Methodology
How We Generate Our Industry Forecasts
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