The growth of Singapore’s automotive industry and demand for vehicles has caused many to be interested in the incorporation of an automotive business in Singapore. Starting an automotive business in Singapore can be very profitable.
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.
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Ease of Conducting Business-Related Activities
The Singaporean government has done a great deal to ensure that everyone who starts a business in the country will benefit from positive working conditions and a business setup method which is not difficult by any means. For this reason, Singapore is one of the world’s most attractive locations for the conducting business activities.
The country is also one of Asia’s primary hubs for wealth management and investment. The nation is also home to one of the world’s largest foreign exchange trading centers. These benefits provide entrepreneurs which many advantages encourage trade activities within and beyond the region. These advantages in turn enable an entrepreneur in the automotive industry of Singapore to work in such a way that will be of much benefit to the business.
The high level of network connectivity in Singapore also eases the carrying out of marketing strategies. Since over 90% of the population of Singapore accesses the Internet on a regular basis, automotive business owners will find it fairly simple to marketing their products and services through social media as well as other Internet platforms such as personal blogging websites.
Availability of Skilled Labor
The automotive industry includes various stages including assembly, repair, and other automotive services. Fortunately for business owners in Singapore, the country has many skilled workers who are ready and willing to enter the automotive industry. These workers will provide businesses with the employment they need in order to provide the company’s products and services to consumers in Singapore and beyond.
What to Do Before Starting an Automotive Business in Singapore
Starting an automotive business in Singapore is easier than doing so in most countries. However, before doing so, certain matters must be addressed in order to ensure the success of the business. One of the most important tasks to be completed before starting an automotive business in Singapore is that of securing adequate finances. Those who do not have sufficient finances to start an automotive business in Singapore will be forced to obtain a loan for the financing of the business. Such loans can be obtained through almost any bank or financial institutions which is based in Singapore.
The next important step with regard to the starting of a Singapore automotive business is that of selecting a suitable location from which business operations will be conducted. Certain business owners prefer to lease a business premise while others would rather purchase one; whichever option is more suitable depends on the business activities to be performed by the business as well as the prospective automotive business owner’s current financial situation.
It is of extreme importance that the business owner apply for and obtain every license which is required in order for the automotive business’s corporate activities to be performed legally. All relevant licensing authorities in Singapore will subsequently provide legal approval through the granting of any required licenses and permits. After every required license and permit has been obtained, the business owner may proceed to hire employees who are deemed to be suitable workers within the new automotive business. It will also be advisable to advertise and market the business so that its reputation and renown among the general public is able to be established.
Thus, it can be concluded that there are a great many benefits to starting an automotive business in Singapore. As the number of vehicles which are registered in Singapore continues to increase, the demand for products and services of the country’s automotive industry will also increase accordingly. Therefore, starting an automotive business in Singapore can be deemed to be a financially sound and forward-thinking move.
If you are interested in starting an automotive or any other business in Singapore, we at Paul Hype Page & Co will be able to serve your business needs. Our experienced and knowledgeable incorporation experts will work with you throughout the entire process of incorporation. We will see to it that your new company in Singapore is established in the proper manner and as soon as possible. This will in turn allow you to commence the business operations of your new company without any trouble.
Starting an Automotive Business in Singapore FAQs
How profitable are automotive businesses in Singapore?Tiwi2020-07-03T11:48:11+08:00
Automotive businesses in Singapore are among the most profitable in the country. They are expected to become even more profitable in the coming years due to the increase in demand for their products.The availability of connectivity networks which exist in Singapore also serve to increase the profit levels of the country’s automotive businesses. Automotive companies which sell expensive vehicles will also experience a great deal of profit because of the high level of profits per sale.
How easy is it for automotive businesses in Singapore to expand abroad?Tiwi2020-07-03T11:46:48+08:00
The advantages offered to companies based in Singapore allow the automotive businesses of the country to expand abroad with far fewer issues than their counterparts in other countries.Furthermore, the Singaporean government has signed trade treaties with other countries; these trade treaties also facilitate the expansion of all businesses in Singapore to other countries.The country’s high standards of shipping and transportation also ensure that business owners who plan on international expansion will be suitably aided in this endeavor.
What challenges are likely to be faced by automotive businesses in Singapore?Tiwi2020-07-03T11:44:49+08:00
One of the primary challenges which many automotive businesses in Singapore face is that ofhigh levels of competition. Any new automotive business which enters the market in Singapore will have to deal with other established companies which have already established their presence in Singapore.Another challenge which such businesses could face is that of access to capital. It might sometimes be difficult to find a person who is willing to invest in the business so as to reduce the possibilities of the company’s facing financial difficulties. For this reason, it is important that automotive business owners in Singapore carefully manage the finances of the business.