Luxury car sales zoom to new highs
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Jan 28, 2011
Luxury car sales zoom to new highs
Makes like Rolls-Royce, Ferrari post record sales as mass market slumps
By Christopher Tan, Senior Correspondent
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NEW HIGHS
Porsche cars seen here in a showroom at Sungei Kadut. The marque was the third best seller among luxury cars with 448 registered - a 48% increase from 2009. -- ST PHOTO: TED CHEN
LUXURY and sports car sales have hit new highs, powered by a strong economy, new models and a shrinking certificate of entitlement (COE) supply that has priced out cheaper competitors.
Practically all high-end cars posted record sales last year as they outgunned bread-and-butter brands for COEs as premiums soared on the back of one of the smallest quotas ever.
Hence, while overall car sales plunged to about 42,000 - less than half the annual average of the preceding five years - the rarefied brands thrived.
Veteran motoring writer Winston Lee said: 'High COE prices form a smaller percentage of the total price of a premium car, so buyers of such cars still perceive them to be reasonably well worth purchasing.
'Also, such buyers are better able to stomach high COE prices than�others in the market.'
Temasek Polytechnic lecturer Dennis Toh, who specialises in consumer behaviour, noted that the number of millionaires in Singapore increased by one-third last year. He also pointed to the fact that the stock market was quite bullish, 'resulting in more earnings among the well-heeled'.
The biggest winner among luxury brands was Rolls-Royce, which sold 37 cars - more than three times its 2009 sales - at well over $1 million apiece. Its dramatic growth was largely on the back of the new Ghost, a less extravagant model priced at around $1.05 million - far lower than the $1.45 million Phantom.
Next was Ferrari, whose sales more than doubled to 69 units. Again, this was on the back of new models, the California convertible, priced around $800,000, and the F458 at about $950,000.
The other big gains were posted by makes such as Land Rover, Porsche, Aston Martin, Audi and BMW.
And while makes like Mercedes-Benz, Jaguar and Lamborghini did not scale record heights last year, they garnered strong growth over the previous year.
Mercedes' best year ever was 1995, when it put 4,953 new cars on the road to emerge as Singapore's best-selling brand, a feat it repeated in 1996.
While high-end brands dominated the record-sales list, there were a few European brands which performed equally well. They were Volkswagen, Citroen and Mini, which set new records last year.
These high-end gains were however at the expense of budget and mass-market brands such as the Japanese, Korean, Chinese and Malaysian makes, all of which suffered a sizeable drop in sales.
Honda, for instance, incurred a 66 per cent shrinkage in sales, while Toyota took a 61 per cent beating.
Industry watchers said it is possible for either Mercedes-Benz or BMW to emerge as Singapore's best-selling brand in the next few years. Toyota has been No. 1 for nine years in a row now.
Motor companies representing the hot high-end makes are mixed in their outlook for this year.
Mr Karsono Kwee, executive chairman of the Eurokars Group, whose brands include Rolls-Royce, Porsche and Mini, said the recent measures to cool the property market could mean fewer people making fast cash.
'I don't think this year will be better than last year,' he said. 'I'll be happy with about the same number of sales.'
Having said that, he added that Porsche has a healthy order bank, especially for the new Cayenne sport utility vehicle.
Over at Ferrari agent Ital Auto, a spokesman described 2010 sales - its first full year since taking over the Prancing Horse marque from Hong Seh Motors - as 'encouraging'.
'There is definitely room to grow,' he said. 'We expect a 10 to 15 per cent year-on-year increase in deliveries over the next few years.'
Even as plans are laid by the incumbents, a newcomer is expected to make its foray into the supercar segment soon.
British-based McLaren said it is 'on the verge' of appointing an agent here.
Group chairman Ron Dennis told the press this week that he is eyeing 4 per cent of the superlative market. The company, better known for its successful Formula One endeavours, has taken the wraps off its first all-independent road car, the MP4-12C. It will be priced in the same range as the Ferrari F458.
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