Tesla Inc is having a good run in rich Singapore where it is witnessing a surge in sales while taking over market share from its rivals.
Car registration is strictly regulated in Singapore to address the issues of high traffic and pollution in the city-state.
The Tesla Model 3 costs roughly S$200,000 ($148,300) in Singapore, which is considered to be one of the places where owning a car is amongst the most expensive in the world, partly due to an ownership fee. In comparison, the same tesla car costs less than $40,000 in the United States. This also highlights the rise of the US firm in the global car market.
Tesla's market value topped $1 trillion earlier this week, as it surpassed the total worth of five of its major competitors: Toyota Motor Corp, Volkswagen AG, Daimler AG, Ford Motor Co, and Nissan Motor Co.
According to figures from Singapore's Land Transport Authority (LTA), the number of newly registered Tesla cars on Singapore roads increased by more than tenfold to 487 in the third quarter, up from only 30 in the first half of the current year.
Tesla was counted as the sixth-most popular car brand in September thanks to a large fan base in the city-state, leaving behind brands like Nissan, Audi, and Kia.
The rise of Tesla in Singapore cannot be explained by a single explanation, say, experts, even though earlier this year Singapore authorities announced a subsidy of up to S$45,000 for electric car owners. Tesla may just be able to deliver more vehicles than competitors since it appears to have performed better than other firms in dealing with supply chain challenges.
"Pent up demand is relatively large. Now the supply is in place and Tesla is most likely working through a large backlog," said Niels de Boer, an electromobility expert at Nanyang Technological University (NTU).
Last month, 314 new Teslas were registered in Singapore, virtually matching the number of registrations for new cars from Hyundai and lagging top manufacturers Toyota Motor Corp. (778) and Honda Motor Corp. (466).
Tesla has remained tight-lipped about its success in Singapore. Customers must still wait 4 to 12 weeks for delivery of new vehicles, according to the company's website.
The expansion of Tesla’s market share in Singapore has apparently come at the cost of other auto brands because of Singapore's severe automobile registration limitations until early 2025. It should be noted that Singapore as a market it tiny in physical size with a span of only 50 kilometers (31 miles) east to west and 27 kilometers north to south.
There was a 45 per cent and 27 per cent drop in the average monthly new car registrations at Daimler's Mercedes-Benz and Nissan respectively in the third quarter compared to the first half of the year.
Only Tesla and Korean carmakers Hyundai and Kia are among the major car brands that have been able to buck the trend of fall in new car registration in Singapore as monthly automobile registrations have dropped by 15.8 per cent on average last quarter compared to the first half. Growth in registration of 13.6 per cent and 25 per cent were recorded for Hyundai and Kia respectively.
In recent months, delivery and sales of cars have been potentially impacted by disruptions in factory production processes caused by a global chip scarcity, according to analysts and industry experts.
Only a handful of brands have been able to work better than others to address the disruption and interruptions which includes Hyundai and Tesla.
But as competition heats up, there can be a waning of the Tesla craze, according to NTU's de Boer. However, the American electric car maker company could assist in increasing the use of electric vehicles (EVs).
"I think Tesla will help with the shift: this is buying an EV while being cool and trendy," he said.
Compared to 20.4 per cent for Toyota, Tesla accounted for 1.4 per cent of the 36,629 new car registrations in Singapore this year.
Tesla CEO Elon Musk had previously criticized Singapore for not providing enough support for the growth of electric vehicles.
Singapore now plans to phase out all internal combustion engines by 2040 and is thus encouraging customers to transition to EVs and is offering a variety of incentives, including additional tax cuts and subsidies.
(Source:www.businesstoday.in)
Car registration is strictly regulated in Singapore to address the issues of high traffic and pollution in the city-state.
The Tesla Model 3 costs roughly S$200,000 ($148,300) in Singapore, which is considered to be one of the places where owning a car is amongst the most expensive in the world, partly due to an ownership fee. In comparison, the same tesla car costs less than $40,000 in the United States. This also highlights the rise of the US firm in the global car market.
Tesla's market value topped $1 trillion earlier this week, as it surpassed the total worth of five of its major competitors: Toyota Motor Corp, Volkswagen AG, Daimler AG, Ford Motor Co, and Nissan Motor Co.
According to figures from Singapore's Land Transport Authority (LTA), the number of newly registered Tesla cars on Singapore roads increased by more than tenfold to 487 in the third quarter, up from only 30 in the first half of the current year.
Tesla was counted as the sixth-most popular car brand in September thanks to a large fan base in the city-state, leaving behind brands like Nissan, Audi, and Kia.
The rise of Tesla in Singapore cannot be explained by a single explanation, say, experts, even though earlier this year Singapore authorities announced a subsidy of up to S$45,000 for electric car owners. Tesla may just be able to deliver more vehicles than competitors since it appears to have performed better than other firms in dealing with supply chain challenges.
"Pent up demand is relatively large. Now the supply is in place and Tesla is most likely working through a large backlog," said Niels de Boer, an electromobility expert at Nanyang Technological University (NTU).
Last month, 314 new Teslas were registered in Singapore, virtually matching the number of registrations for new cars from Hyundai and lagging top manufacturers Toyota Motor Corp. (778) and Honda Motor Corp. (466).
Tesla has remained tight-lipped about its success in Singapore. Customers must still wait 4 to 12 weeks for delivery of new vehicles, according to the company's website.
The expansion of Tesla’s market share in Singapore has apparently come at the cost of other auto brands because of Singapore's severe automobile registration limitations until early 2025. It should be noted that Singapore as a market it tiny in physical size with a span of only 50 kilometers (31 miles) east to west and 27 kilometers north to south.
There was a 45 per cent and 27 per cent drop in the average monthly new car registrations at Daimler's Mercedes-Benz and Nissan respectively in the third quarter compared to the first half of the year.
Only Tesla and Korean carmakers Hyundai and Kia are among the major car brands that have been able to buck the trend of fall in new car registration in Singapore as monthly automobile registrations have dropped by 15.8 per cent on average last quarter compared to the first half. Growth in registration of 13.6 per cent and 25 per cent were recorded for Hyundai and Kia respectively.
In recent months, delivery and sales of cars have been potentially impacted by disruptions in factory production processes caused by a global chip scarcity, according to analysts and industry experts.
Only a handful of brands have been able to work better than others to address the disruption and interruptions which includes Hyundai and Tesla.
But as competition heats up, there can be a waning of the Tesla craze, according to NTU's de Boer. However, the American electric car maker company could assist in increasing the use of electric vehicles (EVs).
"I think Tesla will help with the shift: this is buying an EV while being cool and trendy," he said.
Compared to 20.4 per cent for Toyota, Tesla accounted for 1.4 per cent of the 36,629 new car registrations in Singapore this year.
Tesla CEO Elon Musk had previously criticized Singapore for not providing enough support for the growth of electric vehicles.
Singapore now plans to phase out all internal combustion engines by 2040 and is thus encouraging customers to transition to EVs and is offering a variety of incentives, including additional tax cuts and subsidies.
(Source:www.businesstoday.in)
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