Surge in sales of continental cars

[Garlic]

Source: http://breaking.sg/story.php?title=surge-i...ontinental-cars

European and some US makes garnered 24% of new car sales up to Oct - highest since 1990s

 

By Christopher Tan, Senior Correspondent

 

CONTINENTAL cars are making a comeback here. Strong sales this year could see the dealerships corner a quarter of the trade - their highest market share in a decade.

 

According to Land Transport Authority figures, European brands and a handful of American makes have garnered 24 per cent of new car sales up to October this year, the highest since the 1990s.

 

Aggressive marketing, a slew of new models, technological innovations and cost savings have helped them surge ahead.

 

But in a recession year, their competitive prices have been the main lure, helped in no small measure by the strong yen, which has appreciated by 30 per cent against the Singapore dollar since a year ago. The euro has not risen by as much.

 

While the Japanese makes still have the lion's share of the market, they are feeling the heat from brands like Volkswagen (VW) and Audi, which were niche players just a few years ago.

 

The market share of Japanese cars stands at 57.2 per cent, down from 75.2 per cent last year.

 

Mr Glenn Tan, chief executive of Subaru agent MotorImage, said: 'Our biggest problem now is competition from the continentals.

 

'Their prices are so competitive now... some of their OMVs are lower than those for some Japanese cars,' he added, referring to the Open Market Value, or the cost of cars before taxes.

 

For instance, the 1.6-litre VW Jetta sedan's OMV is as low as $17,269 - lower than the Toyota Corolla 1.6's $17,850. After taxes, the Toyota costs just under $71,000 and the VW $72,800.

 

Volkswagen OMVs have dipped by around 15 per cent since the German manufacturer removed the middleman and took over retail operations here in 2007.

 

Last month, Volkswagen launched the new Polo hatchback at $63,300 - the lowest for a new VW model in recent memory.

 

Up to October this year, Volkswagen sold a record 2,131 cars, rising to the top 10 bestsellers' list here for the first time.

 

Bank executive Nigel Lim was shopping for a seven-seater car two months ago when he decided on a VW Touran over the ubiquitous Japanese multi-purpose vehicle (MPV).

 

'It has a 1.4-litre engine that is supercharged and turbocharged, so it is small and yet powerful. I save a lot on road tax,' the 37-year-old said, comparing it with the 1.8 and 2-litre Japanese picks.

 

Road tax in Singapore is pegged to vehicle engine sizes. The bigger the capacity, the higher the tax.

 

Mr Lim added that his VW Touran averages 11km per litre of fuel, which is comparable to the traditionally frugal Japanese choices. He paid about $99,000 for the car, versus $85,000 to $92,000 for a Japanese MPV of a similar size.

 

Another European brand that is setting records is Audi, helped by several new models - 11 launches this year - and a sizeable advertising and marketing budget.

 

According to advertising market observer Adex, Audi spent $6.6 million on advertisements last year, outstripping other big spenders such as Mercedes-Benz ($4.6 million), Subaru ($3.9 million) and Toyota ($3.5 million).

 

And despite the recession, Audi has spent over $7 million up to October this year - ahead of the rest.

 

Audi Singapore spokesman Sharon Tng also attributed the brand's success to its revamped showroom, training and a used car division to facilitate trade-ins.

 

It sold 1,340 cars last year, up from 964 in 2007. Up to October this year, it has sold 1,249 cars.

 

'We are on course for our fourth record year,' Ms Tng said.

 

Meanwhile, brands like Peugeot, Citroen and Renault are also likely to end the year with higher sales despite a sizeable overall market contraction. The supply of COEs - certificates of entitlement necessary for vehicle ownership here - has shrunk by 27 per cent this year.

 

Observers said the Japanese brands are also losing sales to the Korean makes, which are enjoying a surge on the back of a weak won.

 

MotorImage's Mr Tan lamented: 'We're squeezed by the Koreans at the bottom, the continentals at the upper end. I just don't understand how some of the European prices can be so low.'

 

[email protected]

[D3badge]

Glenn Tan forget to add "I am squeeze by my own adver too. Subaru are limited to the Ah Seng group of people".

[So_nice]

well..mr tan could haf priced his rexes, stis legency gts at 70k too. but does he want it?

[Kiadaw]

Not surprise at the result at all. If Singapore are less conservative, the figure could be even higher. VAG is setting the world on fire for the past 5 or so year. Some even say its already the number 1 auto group in the world. They have so many exciting models & various price range, & so many option & configuration for their cars. Twin charge, turboed, DSG, quattro etc. Its hard to find a car that doesn't meet your need.

 

Not to mention the built quality, feature list & styling that they are praise for, even on lower price models.

 

Of course the high price of Japanese brands, particularly Mazda & Honda doesn't help either, most still offer dull conventional engine, auto box & equipment list.

 

Anyway, I am not on Audi payroll & drives a Japanese family car.

[Help1]

how much is the savings as compare to buying a VW Touran vs Jap MPV. The upfront cost of VW is so high, wonder any savings at all. FC is the almost comparable....

 

 

[Leepee]

Happy to see the conti are on the attack.

this is good competition for the established japan delearships...

So far japanese dealers are too stuck up with their apparent quality and prices....

The koreans and conti are giving them a good scare this year.....no wonder the COE did not shoot up the sky.....the jap AD are scared s--t to push it up as it would makes their car more expensive.

Singaporeans would 'rather' spend a few bucks more to get a better conti cars if the COE shoot up too high.

 

 

[Fcw75]

No play play hor, Mr Tan is now the Executive Director of Tan Chong, not just Motorimage oready. At only 31 years old.

Edited December 5, 2009 by Fcw75

[Throttle2]

No play play hor, Mr Tan is now the Executive Director of Tan Chong, not just Motorimage oready. At only 31 years old.

 

Hardwork and drive aside, which Glenn Tan certainly has shown, there is no dispute that being in Ah Gong's company helped just a bit.

but a little bit only.

 

Just making a point, got nothing against the fella, he seems a funny, down to earth, likeable kind of person.

 

 

Sorry OT.

[Fcw75]

Hardwork and drive aside, which Glenn Tan certainly has shown, there is no dispute that being in Ah Gong's company helped just a bit.

but a little bit only.

 

Just making a point, got nothing against the fella, he seems a funny, down to earth, likeable kind of person.

 

 

Sorry OT.

 

Really? Just a little bit?

 

He appeared in a channel 8 program some years back with quan yifeng and kym ng, and he certainly dun seems like what you said.

 

 

 

[So_nice]

frankly speaking, if he doesnt enjoy the family fortune he has now; i doubt he will be 1/4 as successful as he is now.

[Fcw75]

frankly speaking, if he doesnt enjoy the family fortune he has now; i doubt he will be 1/4 as successful as he is now.

 

Couldn't agree more.

[Picanto]

frankly speaking, if he doesnt enjoy the family fortune he has now; i doubt he will be 1/4 as successful as he is now.

 

 

half of his success is due to his family. the other half is due to hard work and intelligence. not everyone is cut out to be a businessman

[Woonyang]

how much is the savings as compare to buying a VW Touran vs Jap MPV. The upfront cost of VW is so high, wonder any savings at all. FC is the almost comparable....

 

buying conti to save money very hard, but they offer much more than asian cars. so if price about the same, more bang for your buck.

[Sdf5725]

half of his success is due to his family. the other half is due to hard work and intelligence. not everyone is cut out to be a businessman

 

I believe a lot of singaporean are hard working and also quite intelligence in business sense. Lack of $$ support is the main reason why they cant be successful. How many of you can simply take a risk to do "big" thing without worry the outcome when you dont have "family support" nowadays?

[Woonyang]

half of his success is due to his family. the other half is due to hard work and intelligence. not everyone is cut out to be a businessman

 

head start is very important in life, and he was fortunate enough to start near the finish line. where were you when you were in mid 20s? this guy helmed MI from a tender age.

[Fcw75]

He is the only grandson I believe. Few years back, there was an newspaper article on him. He said he start off at the bottom to learn the ropes and not at management level. Even if he's in Sales or Service, who will dare ask him to do anything? 'Ah Tan, go throw the garbage!'.

[Fuelsaver]

hey guys

 

i like all ur responses! my take on your discussions:

 

on conti cars, they sellin well cos lower price & more quality interior than jap makes (closing of door feel oredi very diff). but for those not ready to lose big time will go for jap makes since higher OMV & some lower priced than conti of similar cat'y.

 

no wonder 31 can be ED - it like a career path laid in front of him, as long as he worked hard (think i could b one since i don't laze in my work???).

 

imho.

[Throttle2]

Really? Just a little bit?

 

He appeared in a channel 8 program some years back with quan yifeng and kym ng, and he certainly dun seems like what you said.

 

 

yah lah , just a ""little bit"........