Why The Car You Want Is Not Officially On Sale In Singapore | Backseat Driver
Summary
TLDRIn 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
🚗 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.
🔍 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.
🌏 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.
🛠 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.
🏢 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.
Mindmap
Keywords
💡Authorized Dealer (AD)
💡Parallel Importer (PI)
💡Homologation
💡Open Market Value (OMV)
💡Vehicle Specifications
💡Market Demand
💡Regulations
💡Warranty
💡COE (Certificate of Entitlement)
💡Luxury Segment
💡Product Strategy
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
subscribe to our Channel and of course
you can also hit the notification Bell
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and check us out on Tik Tok for more
interesting content so thank you Preston
thank you shamin thanks for watching
everyone we'll see you soon bye
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