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.