The Automotive Industry of Singapore
Singapore’s automotive industry is one which has been undergoing many changes over recent years. Various reports have provided much information which shows how this important industry has been evolving. Singapore’s automobile market today has been shifting towards a service-oriented model. Meanwhile, many new entrants into the country’s automotive industry have been placing greater emphasis on the customer experience and consumer data. These changes in the automobile industry have led to companies which have been unable to adapt to these changes to suffer while allowing those able to keep up with the changes to prosper.
Singapore’s automotive industry has also begun to take a more global approach in order to attract consumers from all over the world. Therefore, a strategy which is used by start-ups and large players in the industry alike is geographical diversification. This strategy enables automotive business owners to be more able to sell the products in foreign countries.
The Singaporean government has been encouraging investors to invest in the automotive industry. However, the environmental regulations rules on pollution and emissions have served to increase the capital required for investments in the industry. Nevertheless, Singapore’s automotive industry has been showing consistent growth in recent times.
According to the latest statistics, the most widely used vehicle brand in Singapore is Toyota. Approximately 20% of all registered vehicles are Toyotas. Other vehicle brands which can often be seen in Singapore include Honda, BMW, Mercedes-Benz, Hyundai, Kia, Mazda, Volkswagen, Audi, Mitsubishi, Nissan, and Subaru. The 12 leading vehicle brands in Singapore comprise over 88% of all registered vehicles in Singapore. Other notable vehicle brands in Singapore which are rarer include Lamborghini, Tesla, Ford, Ferrari, Aston Martin, and Alpine.
Why One Should Start an Automotive Business in Singapore
Many countries of the Asia-Pacific region benefit from strategic advantages for the purposes of conducting business activities. Singapore is no different in this regard.
Access to Large Markets
Singapore’s relatively close proximity to large markets such as China and India allows those who start any business, including an automotive business, there to benefit from easier access to enormous consumer bases. Therefore, those who start an automotive business in Singapore may benefit from this access to some of the world’s largest markets.
High Level of Connectivity
Singapore has a high level of connectivity with the rest of the world. Singapore’s seaport is known to be one of the best in the Asia-Pacific region; its container ports in particular are among the busiest in the world and provide access to over 600 ports in almost 150 countries spanning all of the world’s continents. Furthermore, according to the logistics statistics compiled by the World Bank, Singapore’s standards of logistics are the best in Asia. Therefore, starting an automobile company in Singapore has advantages with regard to the export of products to other countries due to the high level of connectivity with other nations. This high level of connectivity also provides much exposure to the external market.