Further Fall In Car Sales Possible

Unlike many other markets in the region, Singapore's decline in new vehicle registrations has worsened as the year has worn on, rather than showing signs of recovery. Sales for 2009 got off to a poor start, falling 12% in Q109 compared to the same period last year. There was then a dramatic further worsening in Q209, which translated into a 20.7% y-o-y fall in new car registrations for H109, to a volume of 49,619, according to statistics compiled by the Motor Traders' Association of Singapore. By October, sales were running 25% lower than the first 10 months of 2008 at 76,408 units. The severe deterioration in sales volumes and new vehicle registrations has exceeded expectations, especially given a fiscal stimulus package unveiled by Singapore's authorities and the offering of incentives by dealerships to clear stockpiled inventories.

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