Market Trends of Singapore Used Car Industry
This section covers the major market trends shaping the Singapore Used Car Market according to our research experts:
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.
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.
