Market Trends of Singapore Car Rental Industry
This section covers the major market trends shaping the Singapore Car Rental Market according to our research experts:
Rising Car Prices is Boosting the Market Growth
The cost of owning and maintaining a car is increasing in Singapore, and as a result, there is a growing need for more affordable ways to drive an own vehicle. The availability of cars in the nation has changed significantly as a result of the popularity of car-hailing mobile app services.
In the first three months of 2022, 20.9% of all newly registered cars here were for private hire, an increase from 12.0% during the same period in 2021. The rise in private usage rentals-whether for longer leases that substitute for car purchases or for car-sharing services was the primary factor behind this rise.
The government of Singapore uses a number of quotas and fees to limit traffic growth. These measures have the potential to increase a car's on-road cost to five times its wholesale price in the place of manufacture. The Certificate of Entitlement, which is determined in a twice-monthly auction, carries the highest fee. For ten years, the COE grants permission to operate a car in Singapore. Once it runs out, you must either export the vehicle, junk it, or get a new COE.
Government Initiatives Propelling the Market
Due to the government's regulation of the rental car industry and pricing leadership, which benefits both consumers and service providers, Singapore's car rental market structure is a market dominated by a small number of players. Regardless of the company's market share, the cost of the services remains the same. The introduction of different types of car rental services in Singapore allows clients to select their preferred taxis. Additionally, the government has lessened the likelihood of a monopoly and encourages the players to offer reasonable services. Car rental providers are beginning to understand Singapore's and the Land's alternate transportation system.
The Land Transport Authority (LTA) is assisting in increasing the supply of car rental services to cater to and increase demand, while also ensuring that fares remain competitive. Hence, Car marketplaces provide car rentals ranging from annual plans to renting a car by the minute. Customers can pick and choose the best option for them with the click of a few buttons via online or on the car subscription apps.
Additionally, entrepreneurs receive grants ranging from SGD 5,000 to SGD 600,000 from the government and educational institutions to help them start and/or grow their businesses. There are also numerous incubators and a credible list of Angels and VCs to assist founders in getting their business started in Singapore. Such instances are driving with new entrants entering the market.
