The weak yen will help sales this year.
Japanese-made cars will be the most sought-after products at car showrooms in Singapore this year, according to a report by BMI Research.
BMI Research estimates that total vehicle sales in the country will peak this year and book a 67.3% year-on-year increase. The forecasted growth in total sales is largely due to the de-registration of COEs, the scrapping of vehicles older than 10 years, followed by the purchase of new vehicles and COEs.
This year, BMI Research expects Japanese brands to perform strongly on back of the weak yen, as it helps to make imports cheaper.
Despite the expected surge in sales, BMI Research said that a number of factors will keep vehicle sales growth in check in coming quarters. These include the sluggish economic outlook, the government’s heavy investments into public transport, and the country’s push to be a car-light nation.
“The result of the government's move to reduce vehicle ownership, along with the high costs associated with owning a vehicle, will keep the replacement peak level in 2016 of 131,508 units below the previous peak level of 137,597 units in 2006,” BMI Research said.
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