Why The Car You Want Is Not Officially On Sale In Singapore | Backseat Driver

Summary

In this episode of 'Backseat Driver', industry experts from Toyota and Euras Group discuss the complexities of car distribution in Singapore, focusing on the divide between authorized dealers (ADs) and parallel importers (PIs). They explore the reasons certain car models aren't officially sold in Singapore, including market demand, regulations, and the lengthy homologation process. The conversation delves into the challenges and benefits of ADs versus PIs, emphasizing the importance of customer assurance, warranty, and the unique market dynamics influenced by taxes and COE regulations.

Takeaways

• 🚗 The complexity of launching a car in a new market involves understanding customer preferences, regulations, and a homologation process that can take 2 to 3 years.
• 🌏 There are differences in car specifications and availability across various countries due to market demands and regulations, not just brand decisions.
• 📈 High taxes and levies in Singapore make it challenging for car distributors to offer higher specification vehicles without significantly increasing costs.
• 🛑 Homologation is a critical process that ensures a car is fit for the market, including safety and practicality aspects, which is why some models take time to be introduced.
• 🚫 Parallel imports (PI) can be an alternative for consumers to get specific models not officially sold in Singapore, but they come with risks and lack of warranty support from authorized dealers.
• 🔄 The allocation of car models to different markets is based on demand, regulation, and strategic planning by car manufacturers and distributors.
• 🏢 Authorized dealers (AD) provide a more secure and comprehensive customer experience, including warranties and specialized servicing, compared to PI.
• 🔑 The role of authorized dealers is crucial in maintaining brand standards and ensuring customer satisfaction through proper training and support from the principal brand.
• 💰 The cost of special or limited edition models can be prohibitive due to high taxes and limited availability, making them less accessible through traditional AD channels.
• ⏱ The waiting time for certain models can be influenced by supply chain issues, allocation strategies, and the need for market-specific adjustments.
• 🔄 The future of car sales in Singapore may continue to see a mix of AD and PI, with efforts from manufacturers and dealers to manage and reduce PI through better market offerings.

Q & A

What is the main topic of discussion in this episode of 'Backseat Driver'?

The main topic is the differences between cars being sold by authorized dealers (ADs) versus parallel importers (PIs), and the reasons why certain car models may not be officially sold in Singapore.

Why might a car model not be available in Singapore officially?

A car model might not be available due to various factors such as market demand, regulations, and the time and effort required to develop specifications and homologate the car for the local market.

What is the process like for a car company to launch a new model in a specific market?

The process involves understanding customer preferences, local regulations, and creating a prototype that meets the country's safety and other requirements. It can take around 2 to 3 years from conception to launch.

How does Toyota address the issue of not having certain models available in Singapore?

Toyota offers a range of around 17 models in Singapore to cater to consumer preferences, and they work on introducing models that are suitable for the market after considering various factors.

What challenges do distributors face in deciding which car models to bring into the market?

Distributors face challenges such as meeting market demands, adhering to local regulations, managing taxes and levies, and ensuring that the car prices remain reasonable for consumers.

What is the role of taxes and levies in determining the car models offered in Singapore?

Taxes and levies significantly affect the cost of a car. Higher taxes are imposed on cars with higher specifications, which can make certain models less attractive or feasible for the market.

How do car manufacturers decide which models and specifications to introduce in different markets?

Manufacturers conduct market research, forecast demand, work with distributors to understand trends, and consider global strategies to determine the right models and specifications for each market.

What are some of the risks involved in purchasing a car from a parallel importer?

Risks include potential issues with warranty coverage, servicing, and compatibility with local regulations. There may also be unforeseen mechanical issues that authorized dealers are unable to resolve.

Why might a car model be in high demand in Singapore but not be available or take a long time to be officially launched?

Factors such as homologation, ensuring the car meets local regulations, market demand, and logistical issues can cause delays in the official launch of a car model in Singapore.

What is the significance of the Coe (Certificate of Entitlement) system in Singapore's car market?

The Coe system is a unique regulatory framework in Singapore that controls the number of cars on the road and affects the pricing and demand for different car models.

How do authorized dealers and car manufacturers ensure a positive customer experience when selling cars?

They provide warranties, comprehensive after-sales service, and ensure that the cars meet safety and quality standards. They also train their technicians to service the cars properly.

What is the perspective of car manufacturers on parallel importers in the market?

Manufacturers prefer customers to buy from authorized dealers to guarantee brand standards, customer service, and after-sales support, but they acknowledge that parallel importers may still find ways to operate due to allocation and demand issues.

Outlines

00:00

🚗 Car Market Dynamics: ADs vs. PIs

The conversation begins with a discussion on the complexities of car distribution in Singapore, focusing on the difference between Authorized Distributors (ADs) and Parallel Importers (PIs). The panelists, including Preston from Toyota and Shamain from Euras Group, explore why certain car models like the U1 are not officially sold in Singapore. They delve into the challenges of market-specific car development, the importance of understanding local preferences and regulations, and the lengthy process of car homologation. The summary highlights the multifaceted decision-making involved in introducing a car model to a new market and the balance between consumer demand and market feasibility.

05:01

🔍 Navigating the Gray Market and Taxes

This section delves deeper into the gray market and the impact of taxes on car pricing. The panelists discuss the high costs associated with importing higher specification cars and the subsequent increase in taxes, which affect the final price for consumers. They also touch on the importance of keeping car prices reasonable and the role of the Open Market Value (OMV) in determining these costs. The summary underscores the strategic decisions made by distributors and manufacturers to cater to market demands while managing costs and the regulatory environment.

10:04

🌏 Regional Perspectives on Car Model Allocation

The conversation shifts to a regional perspective on how car models and their specifications are chosen for different markets. The panelists discuss the research and forecasting methods used by Toyota, known as 'sakumi,' to understand market trends and preferences. They also address the challenges of meeting diverse regulatory requirements and the strategic decisions behind model allocation. The summary highlights the intricate process of market analysis and the importance of aligning car offerings with consumer demands and regulatory landscapes.

15:06

🛠 The Challenges of Parallel Imports and Homologation

This paragraph examines the practical issues surrounding parallel imports, including the lack of warranty support and the technical challenges of adapting cars to local regulations. The panelists share experiences with customers who have imported cars, only to face difficulties with servicing and compliance. They emphasize the importance of homologation in ensuring that cars are safe and suitable for the local market. The summary captures the trade-offs between the immediacy and cost savings of parallel imports versus the assurances and conveniences of purchasing from authorized dealers.

20:07

🏢 The Future of Car Sales: ADs vs. PIs

The final paragraph of the script wraps up the discussion by considering the future of car sales in Singapore, particularly the balance between authorized dealers and parallel importers. The panelists express their views on the importance of authorized dealerships in providing a seamless customer experience, the impact of logistical issues on the market, and the strategies employed by brands to manage parallel imports. The summary reflects on the dynamic nature of the car market and the ongoing efforts to meet consumer needs while maintaining brand integrity and customer satisfaction.

Keywords

💡Authorized Dealer (AD)

An authorized dealer is a dealership that has been officially licensed by a vehicle manufacturer to sell its products and provide after-sales services. In the context of the video, ADs are contrasted with parallel importers (PIs), emphasizing the benefits of purchasing from an AD, such as warranty support, trained technicians, and the assurance of original, unaltered vehicles. The script mentions that Toyota has around 17 models available in Singapore through ADs, highlighting the wide range of options for consumers.

💡Parallel Importer (PI)

A parallel importer is a company that imports vehicles from outside the official distribution channels set up by the manufacturer. In the video, PIs are discussed in terms of their role in the car market, often providing vehicles that are not officially available in a particular region, such as Singapore. However, PIs may not offer the same level of customer support and warranties as ADs, which is a point of consideration for consumers.

💡Homologation

Homologation refers to the process of testing and approving a vehicle to meet the specific regulatory standards of a country. In the script, homologation is mentioned as a time-consuming and complex process that manufacturers must undertake to ensure their vehicles comply with local regulations, such as safety and emissions standards. This process affects the availability of certain models in different markets.

💡Open Market Value (OMV)

Open Market Value is the price at which a vehicle is valued for tax purposes in Singapore, which includes the cost, insurance, and freight charges. The script discusses how OMV affects the taxes imposed on vehicles, and consequently, the final price consumers pay. A higher OMV can lead to higher taxes, making certain models more expensive and potentially less attractive to buyers.

💡Vehicle Specifications

Vehicle specifications refer to the detailed features and technical data of a car, such as engine type, horsepower, safety features, and interior amenities. The video script mentions that consumers may notice differences in specifications between models sold in different countries, which can lead to questions about why certain variants are not available in their local market.

💡Market Demand

Market demand refers to the quantity of a product that consumers are willing and able to purchase at a given price. The script discusses how manufacturers and distributors consider market demand when deciding which models to introduce in a particular region. Understanding market demand helps in tailoring the product offerings to suit consumer preferences and regulatory requirements.

💡Regulations

Regulations in the context of the video pertain to the legal requirements and standards that vehicles must meet to be sold in a particular country. The script highlights the importance of adhering to these regulations, such as emission standards and safety protocols, which can influence the types of vehicles available in a market like Singapore.

💡Warranty

A warranty is a guarantee provided by a manufacturer or dealer that covers the repair or replacement of a product under certain conditions. The video script emphasizes the difference in warranty provisions between ADs and PIs, with ADs typically offering more comprehensive and reliable warranties, which can be a significant factor for consumers when choosing where to purchase a vehicle.

💡COE (Certificate of Entitlement)

The Certificate of Entitlement is a permit system in Singapore that allows vehicles to be registered and used on the road for a specific period. The script mentions COE in relation to the cost of owning a car in Singapore, as it adds to the overall price that consumers must consider. The fluctuation in COE prices can affect the demand for different vehicle categories.

💡Luxury Segment

The luxury segment refers to the high-end, premium category of vehicles within the automotive market. The video script mentions that manufacturers aim to cover the entire market spectrum, including the luxury segment, to cater to different consumer needs and preferences. This segment often includes vehicles with advanced features, superior performance, and exclusive designs.

💡Product Strategy

Product strategy is the plan or direction a company follows to develop and market its products effectively. In the video, product strategy is discussed in terms of how manufacturers decide which models to introduce in various markets based on factors like market demand, regulations, and the company's global objectives. This strategy helps companies like Toyota to meet consumer needs while maintaining brand standards and profitability.

Highlights

Discussion on why certain car models are not officially sold in Singapore.

Explaining the division between cars sold by authorized dealers (ADs) and parallel importers (PIs).

The process of developing a car takes around 3 years, involving understanding customer preferences and regulations.

Toyota has around 17 models available in Singapore, providing a wide range for consumers.

Challenges of bringing a higher-spec car to Singapore due to higher taxes and duties.

Importing cars involves considering the market's demands, regulations, and taxes.

Toyota's approach to deciding which models to introduce in different markets based on volume and regulations.

Distributors' perspective on the balance between meeting market demands and managing costs.

The impact of the Certificate of Entitlement (COE) system on the types of cars sold in Singapore.

Parallel importers often import from Japan due to its closer alignment with Singapore's regulations.

The risks and challenges of servicing parallel imported cars in authorized dealerships.

The importance of homologation in ensuring cars are fit for the market and meet safety standards.

Strategies for managing customer expectations and demands for specific car models.

The role of market research and forecasting in product strategy for car brands.

The future outlook for car sales in Singapore, including the potential shift between ADs and PIs.

The importance of authorized dealerships in providing assurance, quality service, and customer satisfaction.

The challenges of meeting specific customer demands for niche or special edition car models.

The impact of global logistics and shipping issues on the availability of cars in Singapore.

Transcripts

hey everyone welcome back to ASI Kama

and another episode of backseat driver

so today we have Preston vice president

Toyota Moto Asia as well as shamain

executive director euras group we're

going to talk about I think quite an

interesting topic for a lot of Singapore

car buyers right so I think the the

framing device is the notion of cars

being sold by ads versus pis in some

ways and I guess we we want to maybe

answer this question that some people

may have so I think the question that

some of you may have is that why is it

that the car U1 is not being officially

sold in Singapore right so just to to

give some context I think there are

probably two instances of of this s ad

versus Pi divide that we see so I think

the first is perhaps you know people are

shopping a particular model and then

they you know they go on to the internet

because you know we have the internet

and then they see oh you know this other

country got this particular

specification and variant that we're not

getting and then they wonder how come

we're not getting that alternatively I

think the other question some may have

is that they see this particular model

being launched in in Japan in in Europe

see why why are we not getting in

Singapore obviously pres you come from

the principal brand perspective and you

know Shan you obviously run a multi

franchise business and that's the

distributor side so just want to get

your opening thoughts on this gray

market and what you generally make of it

to develop a car actually we took around

3 years so we need to understand the

customer the preference the regulation

it's not that we don't want to launch

the car in every mon Market however the

effort to just to develop the

specification towards the homologation

kind of a process to for each country

actually is a very tedious process we

need to build a prototype towards the

country the wire hunters safety aspect

and so on and so forth for us to

introduce a car to the market it takes

around 2 to 3 years to conceive the idea

and then launch the car so it's not that

we we don't want to uh having said that

in uh Singapore Toyota have actually

around 17 model so basically it's quite

a range white range for the consumer to

choose from hopefully this can answer

the consumer why it takes some sometimes

to launch or some car is not launched in

Singapore and I from a distributor's

perspective what do you make of the gray

Market I think okay like for

distributor's point of view I think it's

very simple the answer purely is just

Texas um definitely Preston is right in

saying that it takes a long time to

basically build the car specific to the

Market's demands as well as the Market's

requirements but at the same time in

Singapore as all know purchasing a car

is not as simple as just purchasing a

car there so many taxes put on it even

right before the car is even put into

the showroom right before you even drive

the car out you have your ARF you have

your levies and everything else as well

so with all these excise duty taxes and

everything it it's all affected by the

omv of the car itself so as you know

that if you get a more higher spec car

when you bring it in naturally the taxes

the percentage put on the car itself

would also be higher so with that in

mind also bearing in mind to keep um the

price more reasonable for the market

itself

in that sense um certain car makers have

decided to go for a lower spec or a more

safer option with regards to selling the

car in the market otherwise the car will

move at all so I guess from a de's

perspective purely really is just taxes

and per PR I want to ask you because you

have that Regional experience I think

you've all seen many many markets right

so from a from a principles of product

strategy perspective how do you um

decide of which markets get Which models

and what specifications we do do some

survey uh we call it sakumi we

understand the future Market forecasting

we work with the distributor understand

the trend from the mother company Toyota

we also derive from the global what kind

of structure we you like to introduce in

term of the frame and from there each

market will put out their hand I need

this I need that however look looking at

the volume and the so regulation from

each market then we decide

and the total spectrum of um what model

to introduce we need to cover the whole

a segment to basically D segment we call

the luxury segment one by one uh we will

choose the right car for the right

market and I something that you brought

up which I think perfectly brings Shamy

into the picture right this question of

what does the distributor want so I mean

I don't know in your personal

experiences how much of it is what the

brand and principle essentially wants

for that market and how much is what the

distributor ones I mean perhaps your

individual experiences I think generally

most principles they want numbers right

I mean who doesn't want that so that's a

priority for most principles but when it

comes to what um distributors or dealers

really want it's really also while

getting numbers at the same time being

able to bring in a car that really fits

the Market's demands in terms of not

just the product usability in terms of

the Aesthetics of the product but also

the cost of the product I mean again

like price is very big concern in sing

yeah especially with cars being easily

more than 100 plus K 200 plus K with the

Coe being Sky High as well so with that

in mind I think one example that we

could give is for example the mg4 so the

mg4 was first brought me was a cat B so

with that in mind um I think cat B

prices were an all-time high so with

that also we were like okay this is a

really great car really great Aesthetics

as well but because of the pricing

because of the Coe factor in with that

it's just making the car a little less

demanded for in the market so with that

we didn't do our feedback to our

principles and with that they came in

with the mg4 K A so it's all kind of

like these kind of things that Chang up

a little bit so as to meet Market

Demands a lot better I guess the other s

of obvious question to ask is this whole

notion of why can't we just get what

another Market has and you know

obviously I think the the obvious

question with with a brand like oh you

know we have models in Thailand we have

models in in Malaysia so so and so forth

so why can we not just I guess like

suppl like say oh okay we just want that

one and then let's just get that one

which I mean in some ways is then what

the parallel importers are doing yeah so

if you if you look at it closely par

importer don't really import from

various market around Asia they mostly

go for Japan which is quite closely to

Singapore regulation which is Singapore

government open up LTA actually open up

with this kind of Regulation and some

from basically Euro Andia why we can't

get from other country around Asia

basically we are Euro 6 they are now

looking at Euro 5 emission situation and

also Singapore have the strictest uh

regulation that command uh and request

from LTA so having in this in mind as a

ad authorized dealer and uh also a

principle we always consider the safety

aspect for the customer just for example

if you want to change the audio the

amount of work that we need to consider

is how to rewire the whole car to in

order to be safe to drive and then you

have to reated again yes yes so so

that's why also if we continue to we

always introduce model you adding the

cost to the ad because they need to

homologate and the if the volume is so

small it not worth for the consumer

itself I think that's a very fair thing

to also maybe point out to people right

because I think it's very easy to just

go on the internet and say oh this model

then you can say oh this country got

this country but then you don't realize

that yeah you know different countries

work at different regulations have

different requirements and and at end

these cars have to all pass these

regulations right so then I want to ask

about the question of maybe some single

for hey why do we not get these models

or why do we get it so late or or you

know um why does it take so long when

you know we see the car in Japan like a

year ago and then I think there there's

obviously going to be a group of people

with perhaps more disposal income like

oh I'm just going to find someone to

import it for me so I think the most

Vivid example I could remember in my

experience um of being in the car trade

for the past two years was if you guys

remember a long time ago um the tan was

a bit out of stock for a while right so

it took a very long time time for it to

come the waiting list was crazy long so

with that I think we saw a lot of cases

whereby people decided to import their

own tons in go to Pi Distributors to get

the tans in instead I won't say it's the

majority of it but most of the cases

that came back to us so as you know that

if you buy a parel import car you cannot

really bring it back to a dealer to

service the car authorized dealers

unless you pay an adoption fee so even

with regards to the adoption fee there's

also a case-by casee discretionary basis

because you also got to see whether the

car is able to okay basically I don't

know the mechanics I think you can talk

about it more but more of the I try

the system of the car basically when

it's made for a certain region or a

certain country it's later for the

country itself I think a few take when

the pr take when they did come in

there's a few problems that we couldn't

resolve from our end as well because it

was lated for I think the UK Market or

some other Europe Market at that point

in time so with that in mind or so it

was very hard for us to even fix the

customer's problem and the customer

couldn't do anything as well because

when the customer did buy the car from

par B he did agree to all of the

potential risks that was open to it as

well so I think that was one of the

biggest um challenges that we saw in

terms of people wanting to get a product

ahead of time um I think another reason

why you saying that why it takes so long

for the car to be slated for the

Singapore Market for it to come in when

all the other markets could have it I

think homologation really is the bigger

part of it um I think homologation while

it's a very tedious process we all

complain about it but ultimately it

serves to really make sure that the car

is fit for the market in terms of it

practicality in terms of its usage in

terms of let's say it's a EV car it fits

all the charges around here the

electricity PO is enough or okay then

again don't technicality too well but

basically it's just made for the single

Market yeah I mean there's a question

right how much of it is volume because

you know Singapore is a small Market All

Things Considered we do consider a

special case for some certain market

like Bhutan Nepal even Cambodia it's

small volume Market Singapore consider

to compared to them is quite a big

volume market so in term of volume 200

300 vehicles per year and so on and so

forth we can consider that as a part of

the accepted level of uh introduction

and one point that sham is very clear

that when we import through par importer

the warranty is not given by the

authorized dealership as well when you

go for services I mean AD and also we as

a principal we train the ad technician

to take care of the car and understand

the car so that the servicing that you

get from the ad is totally different

from what you get from outside under the

warranty so they know the particular car

how it was to be serviced where where is

the problem but if you want to get a car

earlier what what we have did what we

did before with BMS and B Moto is as you

remember there's Harrier issue harer

paror brought in earlier compared to uh

BMS immediately we told Japan side that

we need it and within 3 months we get it

so all the planning is necessary all the

forecasting is necessary and all the

understanding of the market is necessary

for us to re to so proactively introduce

whatever model that is suitable for the

market itself and I'm curious from a

principle of Brand's perspective and

pardon me if I'm a little bit ignorant

on this but like how much do you care

about who is selling the car or how much

vested interest do you have in s of

supporting your 80s and trying to sort

of cut out the pis or you know you know

Market this market right I I don't know

what what's your perspective on that

it's not easy to set up a authorized

dealership for the company we need to be

responsible

from a principal perspective to the

authorized dealership as a wholesaler

for them so we always consider customer

first dealer second manufacturing third

from a Toyota perspective so we will not

like to encourage in term of a par

import and in the other way we look at

it also The Branding itself we cannot as

a principle guarantee they provide the

best so customer service best a sales

operation and best customer

experience to the customer compared to

the 80s this is how how the pr principle

is looking at it I mean and I think

that's fair I think that's always the I

guess trade-off when when you consider

between like ad and Pi because I think

typically yeah maybe with pi model you

can get it a little bit quicker maybe a

little bit cheaper but then you are sort

of accepting those compromise as well so

from a distributor's perspective you

know like how do you tackle s of your

customers of maybe for shopping between

ads and P the most prominent thing I

could relate through again was um one of

our experiences at pora so there was one

point in time I think few years back

before there's a 5year warranty that was

introduced for pora the pi numbers were

crazy as well so with that once we

introduce um the 5-year servicing

warranty package I think a lot of that

comes to the car when you buy it a lot

of customers did come come back to us in

end and they found it more worth it to

purchase a new car as well and I think

thank you again for recognizing that

it's not easy to be an authorized dealer

um we did go through a lot of rigorous

training in terms of quality control on

how we sell our products in terms of how

we service the products as well so with

that in mind it gives customers the

assurance that the car that they really

get from the showroom is a real car it

has not been tempered with it's

completely um new and at the same time

when they servicing it they know that

they can get the top-notch service that

was that the technicians were trained to

do based from the principal Brands and

everything so that's definitely one of

the biggest factors to really bring

customers in so actually if you see in

the market most of the cars now they do

come with at least minimum three years

of warranty or servicing as well to

really give the customers that peace of

mind that after you buy the car that's

not the end of the transaction you know

there's more to it there's any issues

you can always bring the car back to

authorized de that's the benefit that

you really get of really purchasing from

an authorized dealer as opposed to um an

after uh a par importer yeah I also want

to ask maybe maybe just to be a little

bit more Niche and santic but maybe this

this question of why can't I get that

particular model so I think perhaps

maybe you want to J down on some of

these more limited volume models more

special models so I mean with like for

example with to I can think of maybe

potentially like the gel Cora for

example one of the newer models right or

with like your special edition Porsches

or special edition M cars right so what

do you say to these customers who say

hey I want that car but you know you are

perhaps going to sell four of them in

Singapore so they perhaps then will

inevitably turn to a parad p to say oh

just get me one example of it so from a

principal or an authorized distributor

perspective how do you um deal with

these customers and their particular and

specific demands okay I think from a

dealer point of view whatever the

customers want we will try our best and

Endeavor to get it as much as we can for

them but at the same time as I was

mentioning earlier with special model

cars on its own before it's even brought

into Singapore it's already expensive

when it comes into Singapore and taxes

that put on it it's going to be

astronomically expensive so with that in

mind as long as the customer is really

willing to put down money where his

mouth is basically in that sense we're

more than happy to bring it in for him

and also at the same time it's also the

relationship with the principles and how

I I'm not sure exactly what goes on in

the principal side per se but I think

also in terms of distribution for

special models they also want to make

more allocation for bigger markets so in

that sense I think it's also how

convincing we are how how we convince

the principles this customer is a legit

one he really will pay you just give the

car here and then we'll definitely get

you a sale and also at the same time I

think it helps that we're in Singapore

Singapore is a country in which also

that while it's small their eyes looking

at it as well I won't say it's a country

that nobody really cares about so at the

same time that also does help um our

convincing of the principles but then

again I think ultimately the issue here

really is cost because if you get in

Japan it's going to be a lot cheaper

than it is in Singapore M and from a

principal's perspective you talk about G

Cora yeah that's the only model that we

don't have actually we have G Yaris J

Supra and total we have four model G

Cora we didn't get it um the planning I

have to say that there some planning

matters however we are trying to catch

it up for the next uh line of and

additionally if you talk about this

special bort kind of models in actual

fact we can see that the trend is there

uh they are getting more more popular to

be I want to be my my own unique

vehicles maybe soon you will see more

from uh our brand yeah interes brand but

but but of course I have to say that as

what sham mentioned is is not going to

be cheap and the duration the duration

will not be not to be you can get it

tomorrow or the next month it going to

be custom custom made book whatever line

um soal stitches you want to have and

color and whatever so it take almost 9

to a year 9 month to a year if you want

to have that kind of special models and

I guess I also want to ask about product

strategy from both an 80 side as well as

a principal side right how much of it is

customer driven and how much of it is

sort of what is deemed fit for the

market and I think I also want to carry

at that with the fact that single Market

is very unique and very specific I mean

obviously we have a Coe system right so

you know how much of it is just decided

I need to I guess create a c a model

perhaps just to fit under these

particular regulations and how much of

it is just like okay we really know this

is the customer demand for an for this

particular variant this is the customer

demand for a particular variant our job

as dealers is really to be on the floor

and to really understand what the market

demands of course regulations uh from

the government that's one thing which

I'm pretty sure that the principles are

also very cognizant of it's not just us

so I think that's kind of like s stone

really but with regards to really what

the market is looking for in terms of

Coe pricing so let's say if the Kat a

prices are down cat B is up naturally we

want more cat a cars right like the Coe

is quite balanced in that sense of

course we welcome cat B cards as well

because generally there's more room to

play with K V cars most of it I would

say at least 80% really depends on

Market demands too for example if now

the market for example the Singapore

vision is kind of going towards EV right

naturally will demand for more EV mies

EV options or Plugin hybrid options all

these kind of different options for the

car so with that we do Fe back to our

principles maybe you want to consider

this type of car for this Market or our

job is basically just to give them um

what they need to know from the floor

and yeah well basically their eyes on

the floor as well the other unique or

quirky thing about the Singapore Market

is the fact that it's a fixed market

right it's a zero sum game if one one

side is selling more cars the other side

is not so um given that fixed size what

do each of you respectively see the

future of car sales in terms of perhaps

the the split between ads and Pi do you

see it changing do you see it s of

holding fairly consistent ideally in a

perfect world of course with 100% of the

pie to be authorized dealers I think

that's not just from our perspective as

dealers but it's also from a consumer

perspective as well right if I want to

purchase the car I want to know that

this car really is where it came from

and I really want to know that this car

is not going to break down Me Halfway

and I cannot find help when it happens

so um I think with that security or that

Assurance in mind that's something that

I think all customers you're paying so

much for your car that's something that

you deserve you know even if let's say

you're purchasing from p and Porter yes

the cost might be a bit lower than

authorized dealer but at the same time

you don't what's going to happen to the

car after that you might actually end up

spending a lot more money to fix the car

than if you were just to send it back to

the service the authorized service

provider so in that sense I think in

Ideal World it would be great if 100% of

the high would be authorized to us that

in the not Ideal World in of looking

just forward in in fut so uh based on

again what I've seen so far generally as

long as the stock comes on time by think

then again this is so shipping issues

Logistics and all that kind of stuff but

again in Ideal World if the stock comes

on time it will also greatly reduce the

demands for pi per se because um I think

a peri of time also there was uh alats

alats are not in stock for a while yeah

so with that I think pi numbers also

increased um from our side also there

was a period of time I think um

Rolls-Royce as well the numbers um I

think because of covid or postco during

that period itself um we were out of

stock for a fair bit and I think only

like two years that it was out of stock

or something yeah it was it was a rather

long time so that really has to do with

I think um the general logistical

problem across the world as well um that

was also when we saw pi numbers going up

again to bring up the example the tan pi

numbers did go up for the tan because

the tan was having a very long waiting

list in Singapore as well so I think

generally in the ideal situation of

where stock comes just in time not over

Supply not over demand uh that's when

the pi rates start to decrease because I

think most singaporeans rather are also

aware of the fact that um they're

actually okay to buy from authorized

dealers in terms of the price and

everything because they're also aware

that it comes with a security in the

insurance of mind that want to purchase

the car it's it's good you're good for

the next 10 years yeah of course from a

principle we would like the ad to have

the whole pie to be a Frank um this

guarantee the brand guarantee the resale

value guarantee the customer experience

I think that is what we're looking at

however in Singapore I believe they

always a chance that um we can't get

enough allocation that's why Pi will

find their old ways and means to do it

looking forward I believe all the

principle is also concerned about such

kind of a um Trend um that customers

start to complain sometimes feedback and

so on so I understand that Mercedes is

trying to manage the pi and they did

quite well if I'm not wrong I don't know

about BM and uh Toyota also try our best

to manage the be from the source we are

working closely with the uh distributor

but we can't can't really eliminate PI

from the Singapore context and I suppose

maybe you could also um sort of expand

and perhap because you you also operate

in other regional market it's like Pi is

not unique to Singapore right I mean it

happens everywhere right everywhere just

Singapore is a a much more prominent

kind of situation of course when the

when the specific it you're talking

about cost so much money everyone's

going to be so much more price sensitive

to everything as well even the country

like Cambodia the pi is like 70% of the

whole whole Market Bangladesh 90%

so all this of course their Market is

very small it's not just Singapore

problem and do you all see that in other

markets as well um I think we do but

then it also brand specific so I think

you did ask just now like you're not

sure about BM right so actually BM is

one of the better examples I think our

most mix in that we know of in Singapore

PM is the most negligible pi numbers

because I think that really took a lot

of work from the principles as well as

the dealers um not just Singapore and

other markets as well to really

continuously work together to say okay

the market Advan is now can you provide

this model right now okay yes we can

allocations put through and with that

and of course competitive pricing as

well as assurance that the servicing is

all packaged nicely together everything

put together just basically it's a nicer

and more attractive package to the

customer so with that in mind I think it

also takes the dealer to work hand in

hand with as well as the principle to

really bring up the brand um in terms of

making sure that the pi numbers are kept

low as well as also ensuring that

holistic like brand image that's only

going to be sold by the authorized deal

State yeah that's a premium n to it lab

and perhaps just just to quickly wrap up

right I think we we've talked a lot

about from the brand perspective and

from the Market's perspective and I

think understandably we we all work in

this in this in this ecosystem so we

perhaps understand but perhaps just to

talk to that individual buyer who

doesn't really care so much about oh you

know um this is your strategy it's just

I just want this car I just want this

particular model this particular

variant why can't I get it or when can I

get it what what would you say to to

that buyer the sky is the limit like I

said if you're willing to

anyway I'm pretty sure we'll find a way

to get the car in for you yeah that is

from the dealers from the principle of

course the safety of the car the usage

of the car is very important we'll try

our best however the cost will roll down

to the 80 and 0 will R out the cost to

to you however if you if really we are

going to introduce this car to this

Market we are ensuring everything is

well taken care of so that is the

Assurance from the princip for example

if there's any recall happen we know

what will happen for the pi yeah yeah so

let's consider to for your for your

peace of mind as what sham mentioned I

think from ad will give you a really

pece of mind that you can guarantee from

80 guaranteed from the principle itself

okay great I think I think that's very

good perspective on what you can expect

in the difference between A and P right

so why is the car that you are not

officially on sale for I think obviously

the answer is there's a lot of reasons

why there are a whole variety of reasons

but I think as you you guys correctly

point out it's also it's very much a

question of meeting um market demand but

also meeting Market regulations and and

ultimately you want to put the right

product in the right Market at the right

time and Ure that the product is ideal

and safe for for the market all right

guys so we hope you've enjoyed this

conversation about the differences

between shopping with an ad as well as a

pi do remember to like share and

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interesting content so thank you Preston

thank you shamin thanks for watching

everyone we'll see you soon bye