Market Trends of Singapore Used Car Industry
Organized Segment Expected to Hold Significant Share in the Market
- The market share of the organized segment of Singapore's used car market is expected to increase over time as more brands plan to enter the OEM pre-owned certified space. The growth of this segment is likely to be further driven by the emergence of online auto-portals and classified platforms such as Carousel and DBS Car Marketplaces, which aim to provide increased visibility and credibility to customer-to-customer transactions.
- Singapore is one of the emerging markets where the organized sector is gaining momentum as major OEMs have notable proliferation. Toyota has the highest brand prominence, followed by Japanese brands such as Mitsubishi, Hyundai, Nissan, etc., which capture a high proportion of the total market as well. This growth is supported by a proliferated network of multi-brand dealers who offer prominent models like Toyota, Nissan, and others.
- The organized segment is likely to accommodate the increased number of dealers spread across the country as more and more organized players are likely to enter the market.
- For instance, in June 2023, Jardine Cycle & Carriage and Carro announced a strategic partnership that aims to redefine the used car and aftersales segments of automotive retailing. The partnership combines the capabilities of an established regional automotive player and a leading used car tech platform.
- Buying used cars from organized players comes with the added advantage of availing of maximum value-added services, which unorganized players do not provide. Thus, consumers are expected to prefer organized dealers over their counterparts in the coming years. Such developments indicate a positive outlook for the market during the forecast period.
Understand The Key Trends Shaping This Market
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SUVs Likely to Witness Key Growth During the Forecast Period
- The SUV segment of Singapore's used car market is expected to witness decent growth during the forecast period. SUVs have become increasingly popular among Singaporean used car buyers in recent years. Consumers are always interested in the latest SUV models, while dealers compete to offer new SUVs for this growing market. The SUV trend among youngsters may be the driving force for the SUV segment among domestic buyers.
- In this situation, SUVs with luxurious and sporty looks generally cater to the higher class while still providing a reasonable level of comfort. SUVs offer greater deals to customers who have these concerns. Even for a low budget, there are low-cost SUVs that give the image of a robust and latest vehicle. The low-cost SUV sector is good value for money in the middle-class economy.
- The emergence of the sub-compact SUVs also offers many possibilities to dealers as these models come with both performance and budget. Some of the top-selling SUV models include Toyota RAV4 Hybrid, MG HS, Skoda Karoq, Toyota Harrier, Honda BR-V, Suzuki SX4 S-Cross, Daihatsu Terios, Toyota Rush, Chevrolet Trax, DFSK Glory 580, and others. The BMW X-series, Audi Q-series, Mercedes G-series, and Volvo XC-series are among the most popular SUVs in the luxury and premium classes, with the BMW X-series, Audi Q-series, Mercedes G-series, and Volvo XC-series among the most popular.
- During the forecast period, used car sales are anticipated to shift from cars capable of transporting many passengers, like multi-purpose vehicles (MPV), to sport utility vehicles (SUVs). This shift is attributed to improved road infrastructure, which has led to a preference among consumers for SUVs when traveling to different places. Such developments are projected to positively influence the outlook for the market.
