2013-03-23 08:26:26 - New Transportation market report from Business Monitor International: "Singapore Autos Report Q2 2013"

We believe the latest strength in Certificate of Entitlement (COE) prices showcases the strong demand for vehicles, a trend which we expect to continue. With the number of motor vehicle registrations crossing the 1mn 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 COE saw yet another surge in the latest bidding exercise. However, this time small cars (below 1,600cc) COEs saw the biggest hike of 8.7% month-on-month (m-o-m), ending at SGD77,201. Premiums for big cars (above 1,600cc) 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.


Full Report Details at
- www.fastmr.com/prod/552399_singapore_autos_report_q2_2013.aspx


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 past few years and, eventually, consumers will throw in the towel and purchase a new car.

Report Table of Contents:

BMI Industry View
SWOT Analysis
- Autos SWOT
- Political
- Economic
- Business Environment
Global Industry Overview
- Table: Passenger Car Sales, Units, 2012
- Japan To Contract, But US Safe (For Now)
- Europe Over The Worst?
- Even Russia Will Hit The Brakes
Industry Risk/Reward Ratings
- Singapore Industry Risk Reward Ratings
- Table: Business Environment Ratings - Auto Industry Asia Pacific
Regional Overview
- Asia Overview
- Thailand: Sales And Production Will Continue Posting Healthy Increases
- Malaysia: Sales To Grow And Production Finally More Stable
- Sales
- Australia: Sales To Contract Due To Tough Macroeconomic Conditions
- Japan: Bearish On Sales, Production To Remain Subdued
- China: Rebalancing Story To Favour Passenger Cars
- India: Government Regulatory Risks In Play
Macroeconomic Forecast
- Economic Analysis
- Table: Singapore - Economic Activity
Industry Forecast
- Table: Singapore Automotive Sector Registered Vehicles: Historical Data And Forecasts (CBUs)
- Table: 2012 Sales Of Top Ranked Models (Units)
Company Profile
- Company Monitor
- BMW
- Toyota
Demographic Forecast
- Demographic Outlook
- 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
Methodology
- Automobile Industry
- Sources

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