3 Key Observations from the Singapore Motor Show!
The 2023 Singapore Motor Show has just concluded! The new cars launched goes some way into revealing the true state of affairs about the car buying market in the year ahead.
And whilst no one knows for certain what the market will look like for the rest of the new year, educated guesses can be made just by taking a look at the new cars that’d be made available for public sale very soon.
The list here is in no particular order, and is just the opinions/observations of the Motorist editorial team.
Manufacturers are not Quite Ready to go Full Electric
It’s clear that despite the government’s push to go all-electric, manufacturers are still not quite ready. Sure, many new EVs have been launched at the motor show, but the vast majority of the auto brands still have majority ICE cars in their show roster.There are many contributing factors to this. The majority of the vehicles featured are halfway through their lifecycle, and at present, not yet scheduled for replacement. Another plausible reason is the difficulty in launching a competitively-priced electrified version of an existing car, seeing that these are usually much more expensive than its petrol counterparts.
You can Manufacture Cars in Singapore
High labour and land costs meant that for years, manufacturers have been disincentivised to even consider assembling cars in Singapore.But Hyundai begs to differ. The motor show gave Hyundai a chance to unveil its locally-made IONIQ 5 EV, built at its new Hyundai Motor Group Innovation Center in Jurong. The plant is capable of producing 30,000 cars annually, with 6,000 of them bound for sale locally.
With a global recession set to hit in the second half of this year, and with COE prices continuing to be at record highs, there's a pressing need for dealers and manufacturers to offer a product of value.The sheer number of sensible new cars launched at the motor show is a sign that everyone is hopeful for smoother sailing times ahead. Having said that, there is irrefutable proof that the rich will keep on buying new cars regardless of COE prices, as proven by the unveiling of the new Mercedes-AMG SL 55!
Are we in for a Better Year Ahead?
Realistically, COE prices cannot sustain at the levels they are currently at. As more people start getting priced out of car ownership, demand will eventually fall, leading to a reduction in quota premiums.And whilst the thought of a global recession is frightening, it also creates opportunities for start-ups and crafty entrepreneurs to make a name for themselves!
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