Singapore Used Car Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Singapore Used Car market is segmented by Vehicle Type (Hatchback, Sedan, and Sports Utility Vehicle (SUV) and Multi-Purpose Vehicles (MPVs)), Fuel Type (Gasoline, Diesel, and Others), Booking type (Online and Offline), and Vendor type (Organized and Unorganized). The report offers market size and forecast for Vietnam Used Car market in Value (USD billion) for all the above segments.

Market Snapshot

Singapore Used Car Market
Study Period: 2018-2027
Base Year: 2021
CAGR: >4 %

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Market Overview

The Singapore used car market was valued at USD 40.03 billion in 2021 and is expected to reach USD 51.43 billion by 2027 registering a CAGR of above 4% during the forecast period (2022 - 2027).

The COVID-19 pandemic had a mixed impact on the market, during 2020 due to lockdowns and restrictions the demand in the market halted. However, the pandemic influenced consumer behavior positively towards owning a vehicle over public transport indicating an increase in potential customers of the used cars market. By first half of 2021, the demand for used cars started picking up pace as majority of these people who could not afford a new car in the first place, started inclining towards the most optimal solution available, that is, purchasing pre-owned vehicles.

Over the medium term, factors such as increasing purchasing power and easy availability of finance are expected to contribute positively to the market's growth. Further, rising digitalization, internet penetration, and an increase in online players are likely to act as critical factors in boosting used cars sales as they have made the overall process of selling and buying used cars quite convenient and prompt.

However, recent incidences like surge in prices of used cars across the country in wake of rising along certificate of entitlement (COE) premiums and large cars COEs breached the USD 100,000 mark indicate signs of weakening market. Such instances are forcing dealers to uphold prices on cars they had bought when the market price was high, these factors if prolonged estimated to act as potential challenges.

Furthermore, the rise in the value-added service offering and variety of finance providers offering credit for used cars will also contribute to the growth of the used car market in the region. However, the higher interest rates might turn around some potential customers hampering the market’s growth.Another major factor aiding the market growth is emergence of various Non-Banking Finance Companies offering low-interest rate compared to banks and flexible installment options.

Central Singapore followed by North East and North West community development council expected to see positive growth during the forecast period. The demand expected to be driven by high net worth individuals and consumers inclination towards immersive purchase experiences provided by several used car dealers operating across these regions in the country.

Scope of the Report

A used car, a pre-owned vehicle, or a secondhand car, is a vehicle that has previously had one or more retail owners. Used cars are sold through various outlets, including franchise and independent car dealers, rental car companies, buy here pay here dealerships, leasing offices, auctions, and private party sales. The scope of the report covers details on the latest technologies, trends, and developments in the market.

The Singapore Used Car Market is segmented by Vehicle type, Fuel type, Booking type, and Vendor type. By Booking type, the market is segmented into Hatchback, Sedan, and Sports Utility Vehicle (SUV) and Multi-Purpose Vehicles (MPVs)). By Fuel Type, the market is segmented into Gasoline, Diesel, and Others.

By Booking type, the market is segmented into Online and Offline. By Vendor type, the market is segmented into Organized and Unorganized. For each segment, market sizing and forecast have been done on basis of a value (USD billion).

By Vehicle Type
Hatchbacks
Sedans
Sports Utility Vehicles (SUV) and Multi-Purpose Vehicles (MPVs)
By Vendor Type
Organized
UnOrganized
By Booking Type
Online
Offline
By Fuel Type
Gasoline
Diesel
Others

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Key Market Trends

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 are planning 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 at providing increased visibility and credibility to customer-to-customer transactions.

Singapore is one of the emerging markets across the European region where the organized sector is gaining momentum as major OEMs have notable proliferation in the market. Toyota has the highest brand prominence followed by Japanese brands such as Mitsubishi, Hyundai, Nissan, etc., capturing a high proportion of the total market as well. Further, 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 2021 Borneo Motors has officially announced its pre-owned/used car retail operations for Toyota and Lexus – Toyota Certified Pre-Owned and Lexus Certified Pre-Owned, for each car brand respectively. Inchcape Certified Pre-Owned and Toyota and Lexus Certified Pre-Owned claim to bring brand-name reliability for a better experience to pre-owned car purchases in Singapore.

Moreover, as buying used cars from organized players comes with the added advantage of availing maximum value-added services which are not provided by the unorganized players, the consumers tend to prefer organized dealers over their counterparts in coming years. Such developments indicate a positive outlook for the market during the forecast period.

Singapore Used Car Market_trend 1

SUV segment of the Market Likely to Play Key role During 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 Singapore used car buyers in recent years. Consumers are always interested in looking at the current SUV models on the market, while dealers compete to offer new SUVs for this growing market. The SUV trend in the youth may be the driving force for the SUV segment among domestic buyers.

In this situation, the existence of SUVs with luxurious and sporty looks generally cater to the higher class while yet providing a reasonable level of comfort. SUVs offer greater deals to customers who have these concerns. Even for a low budget, there is a low-cost SUV that nonetheless gives the image of a robust and latest vehicle. This SUV sector is a good value for money in the middle-class economy.

The emergence of the sub-compact SUVs also has offered 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.

In the forecast period, used car sales are anticipated to shift from a car 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 in the market projected to poise positive outlook for the market during the forecast period. 

Singapore Used Car Market_trend 2

Competitive Landscape

The Singapore Used Car Market is moderately fragmented owing to its competitive nature and the presence of a large number of regional and domestic players operating across the country. while some prominent players focused on fleet expansion and collaborations, etc. the new entrants ate focused on widening their customer base by adopting varying strategies. For instance,

  • In June 2021, Singapore-based start-up Carro announced that it has raised USD 360 million in a Series C funding round led by Softbank's Vision Fund. The start-up operates an online marketplace where users can buy, sell or lease pre-owned and new cars. It also sells financing options, insurance, and maintenance services for those vehicles.
  • In July 2021, Tanglin Cars Pte. Ltd., an authorized reseller of, among others, used BMW and Ford cars in Singapore, sold its 40% shareholding in Performance Premium Selection Ltd (“PPSL”) to Performance Motors Limited (part of the Sime Darby Motors Group). The parties have completed the agreement in November 2021, making Sime Darby Motors the sole owner of PPSL after completion.

Recent Developments

  • In February 2022, A consortium led by Toyota Financial Services Singapore purchased sgCarMart from Singapore Press Holdings for a total of $150 million. The all-cash deal also includes SGCM's intellectual property and its subsidiaries, Quotz Pte Ltd, Singapore's leading consumer-to-business online car auction platform, and Quotz (Taiwan) Pte Ltd, but will exclude its financial services arm. The consortium is made up of three companies, led by majority shareholder TFFSG, which will hold 76% of the shares in SGCM.
  • In March 2022, used car platform Carsome announced that it has acquired a 51 percent stake in Car Times Group, a Singapore-based used car dealer and parallel importer. The company further stated that investing in Car Times could also help Car some to compete with its rival Carro, another Southeast Asian used car platform headquartered in Singapore.
  • In May 2022, Eurokars Group and Porsche have announced the formation of Porsche Singapore Pte Ltd, a new venture with a focus to explore emerging automotive retail concepts that will continue to create customer-centric experiences in Singapore.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size in Value USD billion)

    1. 5.1 By Vehicle Type

      1. 5.1.1 Hatchbacks

      2. 5.1.2 Sedans

      3. 5.1.3 Sports Utility Vehicles (SUV) and Multi-Purpose Vehicles (MPVs)

    2. 5.2 By Vendor Type

      1. 5.2.1 Organized

      2. 5.2.2 UnOrganized

    3. 5.3 By Booking Type

      1. 5.3.1 Online

      2. 5.3.2 Offline

    4. 5.4 By Fuel Type

      1. 5.4.1 Gasoline

      2. 5.4.2 Diesel

      3. 5.4.3 Others

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 Otopac Motors Pte Ltd

      2. 6.2.2 Directcars Pte Ltd

      3. 6.2.3 Carsome Singapore Pte Ltd

      4. 6.2.4 Trusty Cars Pte Ltd (Carro)

      5. 6.2.5 Merchant logo Cosmo Automobiles Pte Ltd

      6. 6.2.6 CarTimes Pte Ltd.

      7. 6.2.7 Motorist Singapore

      8. 6.2.8 SgCarMart singapore

      9. 6.2.9 Vincar Pte Ltd

      10. 6.2.10 Eurokars Group of Companies

      11. 6.2.11 Performance Motors Ltd

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Frequently Asked Questions

The Singapore Used Car Market market is studied from 2018 - 2027.

The Singapore Used Car Market is growing at a CAGR of >4% over the next 5 years.

The Singapore Used Car Market is valued at 40 Billion USD in 2018.

The Singapore Used Car Market is valued at 51 Billion USD in 2027.

Direct Cars Pte Ltd, Otopac Motors Pte Ltd, SgCarMart singapore, Trusty Cars Pte Ltd (Carro), Carsome Singapore Pte Ltd are the major companies operating in Singapore Used Car Market .

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