For many motorists, bigger is better

One of ST's journalists wrote to me and asked about the reasons why bigger cars (above 1,600cc) are outpacing smaller cars (up to 1,600cc) in growth over the years in SG and whether i see the trend continuing.
My reply to him -

The COE price gap between Cat A and Cat B has narrowed over the last few months.

The trend is a reflection of the growing middle & upper income segments in Singapore. Based on a recent report by Boston consulting group, the number of millionaires in Singapore grew by 14 percent.

Household income has gone up and average car price has gone down.

Oil prices have stabilized and hence consumers’ are more confident to invest more on cars.

By and large the economy is improving and consumers are more inclined to purchase big ticket items.

Property prices are still in their rocket high and investors and Singaporeans are rather, still holding back on their property investment and purchase. During this interim, there’s a paradigm shift in consumer’s purchase and wants– in this case on larger and luxury cars.

I see that the trend will continue for a while

1) Singapore’s economy is improving and going for double digit growth

2) The need for Singaporeans to be mobile as our quality of life improves.

3) The increased destination and tourist spots in SG targeting Singaporeans and heartlanders ( eg. Resort world Singapore, Marina Bay Sands, Sentosa etc) Singaporeans are travelling to all these spots with their families a lot more. Hence the need for bigger cars.

4) The continued pursuit for quality of life. By and large, Singaporeans are a sophisticated bunch and need to travel and be exposed to new things, ideas. Car ownership also allows Singaporeans to find self actualization in themselves and also a platform to showcase their achievement and status.

5) The change in weekend cars scheme which allows consumers to drive their cars on weekends (full day) and also the timing change during weekdays.

and here's the outcome -