New BMW units sold tumbled by over a quarter.
BMW Group Asia was experiencing unprecendented growth post global financial crisis until last year when the government introduced new policies and increased COE premiums.
Among new rules introduced include subjecting new cars to tiered tax system, car loans capped at 50% maximum and over 5-year tenure and COE premiums hitting new heights f $90K range in early 2013.
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Based on the data provided by BMW Asia Group to Singapore Business Review, the total number of BMW units sold in 2013 was down by 26% to 3,730 while that of MINI plunged by 35%.
Sethipong Anutarasoti, Corporate Affairs Director of BMW Group Asia, notes that the shift in policy not only affected BMW Group vehicles but the overall car industry as a whole.
Data from the Land Transport Authority show the total number of new cars registered in 2013 declined by 21% to 22,472.
This year, Anutarasoti says that their group is experiencing a mixed signal in terms of the demand outlook for luxury cars in Singapore.
"While there are many car owners who wish to buy luxury cars, the existing rules have proved to be a hindrance for them to do so," he explains.
Apart from the rules introduced in 2013, some new obtacles according to Anutarasoti include shrinkage of overall monthly COE quota by 6% from 4,019 to 3,777 allocations; COE premiums remain high at the $70k range; and new rule for CATA (capped at 130hp).
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