Future of Automobile Industry in Singapore Post COVID-19

Aaron Tan, founder and CEO of Carro, an automotive marketplace talks about the changing landscape

By
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur Asia Pacific, an international franchise of Entrepreneur Media.

The novel coronavirus pandemic has hit many industrial sectors. One of the worst affected has been the automobile sector. Now, countries are recuperating and economies are stabilizing, and people have started making plans to buy cars.

For the last ten years, Singapore’s economy subsisted a constant rise in a period of abundance that it hasn’t encountered before. For illustration, the capital per grown-up rate increased by 5.6 per cent from mid-2017 to mid-2018, which gives birth to the number of millionaires and the super-wealthy residing in the country to increase by 11.5 per cent and additional 1.2 per cent, respectively. This surge in income is moreover signified by Singapore's residents sustaining more wealth growth in comparison to previous generations–leading to many Singaporeans believing they are now better off financially than they were five years ago and can live comfortably with more disposable income.

Yet, despite their growing spending power, what’s typically been elusive for Singaporeans (even high-income earners) is car ownership, which–along with overall car sales–has dropped due to the costs associated with driving a car in the small city-state.

To discuss the after-effects of a pandemic on the automobile sector in Singapore, Entrepreneur APAC interviewed Aaron Tan. Tan established his introductory startup when he was just 13 and has retailed two firms before turning 21. He is presently the founder and CEO of Carro, an automotive marketplace. Before Carro, Tan devoted more than four years with southeast Asia’s prominent investment fund, Singtel Innov8 Ventures.

In the interview, he told that as his company deals in used cars, people not buying new cars in the first place affected his business subsequently. The car manufacturers had to shut down their factories at the end of February. This in turn adversely deteriorated their sales of used cars. Their business was struck hard. But over time, the circumstances turned in their favour. People started to prefer personal vehicles to travel instead of public transport. The obvious reason was that everyone wanted to travel safe and prevent any chances of contracting any kind of virus.

When he was asked why people sell their cars, he replied that the prices of cars have increased by 15 per cent more than last year. So it you want to sell off a car you don't want to use right now. It's the perfect time for you to sell. Simultaneously, if you want to buy a car it is not an ideal time to buy.

Later on, he told how their pricing algorithm works. How they set the price of the used cars based on age, miles covered, condition of different parts of the car, etc.

Acquiring better experiences with cars

As the desire for amenity welfares is on the surge, Singapore has seen a decline in car possession over the years. This has occurred partially due to the restricted certificates of entitlement (CoEs) published by the administration, which is intended to manage congestion as well as to enhance environmental and metropolitan sustainability in view of growing affluence in the country. This implies that an automobile’s price goes well beyond its purchasing tariff due to increased enrollment fees, street taxes and insurance–and that’s not even tallying the monthly instalments when taking out a car loan.

 

Nonetheless, while public buying tendencies indicate that Singaporeans are evolving less price-sensitive, this is not the issue for cars. According to a YouGov Omnibus that looks into consumer patterns across Asia, higher-income wagers in Singapore were additional prevented by the expense of taking care and the car’s devaluing value than those in the lower-income bracket. This alludes to the certainty that Singapore’s wealthy aren’t deterred by the high expense of the car itself—rather they don’t want to devote to a long-term commitment that will only devalue over time.

Latest

How This Amazing Campaign Succeeded in Changing a Brand's Perception and People's Lives at the Same Time

In our series 'Anatomy of an Ad,' Group Creative Director Tony Jones gives the heartwarming story of how Operation Santa finally took off.

How this Tech Entrepreneur, Biohacker, and Author is Helping Women with Their Periods

The founder and CEO of Flo Living on the future of biohacking and hormonal healthcare.

Duce Raymond of Sweet Baby Ray's BBQ on Using Social Media Like a Boss

Interview with Sweet Baby Ray's BBQ Catering Culinary Director Duce Raymond about his fresh approach to social media content marketing and huge results with short video for the already world-famous brand.

The Key to Effectively Communicating Important Messages Is All About Simplicity

In our 'Creative Conversations in Advertising' series, award-winning Group Creative Director Giancarlo Rodas and Entrepreneur magazine Editor in Chief Jason Feifer discuss distilling complex ideas down to a simple message.

How to Deliver a Serious Message Through Humor

In our series 'Anatomy of an Ad,' Creative Director David Stevanov explains how humor can be a storyteller's most effective tool.

This Successful Shark Tank Entrepreneur Shares His Latest Innovation

The Founder of Ooonimals, Club 44, and the OOO Studio Lab talks about his current projects and what you need to know about the risks and rewards that exist in the NFT space.

Brendan Sweeney of Popmenu on How Ego is the Root of All Evil

Interview with Popmenu CEO Brendan Sweeney about building a positive user experience, the state of restaurant technology, and the importance of providing answers.

Recession-Proof Your Mindset with Neuroscience

With top economists fearing a recession, award-winning author Ben Angel teaches how to recession-proof your mindset with neuroscience to manage stress levels.

How to Find Your "Oxygen Points" to Sustain and Grow Your Business, According to an Investment CEO

Entrepreneur Network Partner Ashley Crouch sits down with the CEO of Al Zarooni Emirates Investments, Dr. Adil Alzarooni.

How to Get Investment Funding for Your Business

Entrepreneur magazine's Editor-in-Chief Jason Feifer and Narya Partner Falon Donohue have a lively and informative conversation about securing the funding you need to launch your dream.

Keith Koo Explains How Angel Investors Prioritize Startup Funding Decisions

Entrepreneur Network Partner Ashley Crouch sits down with the Managing Partner of Guardian Insight Group and Angel Investor, Keith Koo.

Why this Popular Web3 Esports Game Was Designed with a Play-to-Earn Model

The Chief Product Officer of MonkeyLeague discusses his company, why monkeys are all the rage for NFTs and gaming, and his advice for developers.

Want to Get Customers' Attention? Tell Them a Great Story.

In our 'Creative Conversations in Advertising' series, award-winning creative director Josh DiMarcantonio and Entrepreneur magazine Editor in Chief discuss the power of storytelling.

How Do You Get People Excited About a Product That Doesn't Exist?

In our series 'Anatomy of an Ad,' producer Liz O'Connor breaks down the components of the award-winning True Name by Mastercard campaign.

Discover Entrepreneur Series

Whether you need advice on how to get your business off the ground or you’re just looking for inspiration, our video series have something for everyone. Browse our library below to find a series that speaks to you and your interests.