Future Of The Car Industry in Singapore
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Future Of The Car Industry in Singapore



1. Look into the green car industry in Singapore.

1. Look into the green car industry in Singapore.
2. Is there a market for BMW green cars?
3. Singaporeans automobile buying habits.



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  • Oil price increases, there will be an inflation, and a burning hole in our pocket, purchasing power decrease, what will happen to the car industry? How can we positioned to survive?
  • In terms of car industry, they have come up with a series of eco-friendly cars and invent technologies to reduce emissions. “Green is no longer progressive. It is expected.”
  • There are so many of green cars out there in the market, so I will scope it down to a few popular ones and those which are available in Singapore.
  • It seems that Japanese car brand is really prominent in eco-friendly. When I posed the question, “….” Most of them were like any japanese car brands lah Whats eco friendly ah? Hybrid? Diesel? Don’t really have a clear idea on eco-friendly vehicles
  • Mission: “Eco-car will give a positive contribution to the environment when widely used.” Aim to create a low-carbon society by responding to the need to diversify energy sources. Japanese companies have struggled to cope with their oil-poor country's sky-high energy costs by placing a premium on energy-saving technologies, and it has paid off. It's impossible to tally the direct economic effect of the green-car race at this point, but it's huge and likely to grow
  • "The Prius is their shining example of their vision of what we should all be driving and it is everything the new Toyota represents. Toyota has won more "Best Car for the Money" awards than any other car manufacturer Toyota has the highest owner loyalty of any manufacturer Toyota is the #1 selling brand for the last three years The experts at ALG have ranked Toyota's predicted resale value high among mainstream brands Toyota has the best overall brand value of any full-line manufacturer on the road today
  • Plug-in = evolution through integration of hybrid and electric vehicles, serves as the most practical way to use electricity in general passenger cars. Part hybrid vehicle that lightly relies on gasoline to operate and part electric vehicle that eliminates the concern of unexpected battery drainage. Target to market to the public in early 2012 with target sales at 50,000 vehicles per year. Electric = 0 emissions, serves a suitable & practical use for short distance travel. Aim to sell in Japan, US & Europe in 2012 Hydrogen = powered by fuel cells, generate electricity from hydrogen. It holds great potential as a clean, renewable fuel. Market by 2015. Natural Gas = Compressed natural gas is one of many alternative fuel applications being explored in Toyota's broad sustainable mobility research and development strategy. As a transport fuel, natural gas is a clean and safe gasoline alternative
  • More specifically, we think that electric vehicles will be used for short distance travels, while fuel cell vehicles will be used for long distance travel. Additionally, we believe a majority of the currently operating vehicles will be replaced with hybrids or plug-in hybrids in the future. Hydrogen burns faster compared to gasoline
  • Mission: “As a responsible member of society whose task lies in the preservation of the global environment, company will make every effort to contribute to human health and the preservation of the global environment in each phase of its corporate activity. Only in this way will we be able to count on a successful future not only for our company, but for the entire world.” Honda has a history of environmental leadership dating back to a time when green was simply a color. Several decades later, we are proud to carry the tradition along, and be recognized as the country’s Greenest Automaker for the 5 th time in a row
  • “ For people who had had enough of squeezing between road.” “ Something for everyone.” Can’t go too fast, people who buy this car are knew that it’s gonna be slow but they’re willing to compromise because of its price & popularity
  • Not for acceleration but also braking as well The blue indicates Insight is consuming extra fuel due to abrupt braking/acceleration The green indicates smooth and fuel-efficiency driving Econ mode: reserve the energy Personalization allows the drivers to feel as though they are really doing good for the environment hence the feel good factor comes in.
  • Honda sees fuel cells as the ultimate source of clean energy for the future. Its goal in operating the next-generation solar hydrogen station is to develop the technology needed for a hydrogen production, storage and supply with zero CO2 emissions. The earlier version of the solar hydrogen station, which was operational from 2001 until 2009, required water electrolysis equipment and a hydrogen compressor to produce high-pressure hydrogen. Hydrogen production and compression have been integrated into the next-generation system, using high-pressure water electrolysis technology developed by Honda. By eliminating the compressor, Honda has reduced cost, size and noise, opening up the possibility of a home-use hydrogen supply system. Hydrogen production efficiency has also been improved by 25%* compared with the previous system, allowing the new system to supply approximately 0.5 kg of hydrogen via an eight-hour refueling process, enough to power the FCX Clarity fuel cell electric vehicle approximately 50 km. Like the earlier system, this next generation system uses Honda-developed CIGS-type thin-film solar cell modules, now manufactured by Honda Soltec Co., Ltd.
  • In line with our corporate statement, "Changes for the Better," which reflects our perpetual drive to actively seek out and enact improvement, Eco Changes represents our efforts to join forces with our customers to change the global environment for the better. “for a greener tomorrow”
  • 'Singapore is an ideal location for such a test-bed with its size, compact urban environment, robust power grid and infocomm technology infrastructure.' The data collected will be key in evaluating the costs and benefits, and overall feasibility of the future adoption of EVs here. The Energy Market Authority (EMA) and the Land Transport Authority will also call for tenders from companies interested in building charging stations for these vehicles. The EMA is working with the Housing Board and town councils on building charging stations to serve HDB residents and taxi drivers.
  • Mission: Audi adopts a holistic approach to sustainability mobility- addressing the total emissions issue throughout the lifecycle of a car from production, car usage to recycling.
  • An entry-level luxury car. It has earns its environmental credentials and its 2010 Green Car of the Year distinction. This is the second year in a row that a clean diesel has risen to the top in Green Car Journal’s annual award program, a remarkable showing considering the competition. Its 2.0-liter TDI engine provides drivers substantial low-end torque for an enjoyable driving experience, all the while achieving 42 mpg on the highway with reduced CO2 emissions and strict 50 state emissions certification. It’s a hatchback Competitor: VW Jetta
  • It won Earth, Wind & Power Environmental Award. I t was selected by the environmental group as “Most Environmentally Progressive Truck of the Year” at 2009 L.A Auto Show. The award is to recognize vehicles that contribute to reduction of global warming, are conducive to promoting a clearner environment, and help reduce dependence on foreign oil through alternative energy sources. The bigute is able to deliver 30% better fuel economy and able to reduce CO2 by 20% over gasoline engines. TDI (turbo charged diesel engines with direct injections) combined excellent performance, high-fuel efficiency, low emissions output & low maintenance. The exhaust emission control system reduces nitrogen oxides by 90% Most of them compete it with VW.
  • Audi developed the TDI & the 1 st car was back in 1989 and now they have built more than 4.5 million cars with the TDI. Half of Audi vehicles that are sold around the world have a diesel engine under the hood. This makes the direct injection diesel engine (TDI) the world’s most successful efficient technology.
  • D) Toxic carbon monoxide down by 93% Has similar physical properties to petrol & diesel TDI draw their energy from SynFuel In 2007, Audi has provided an exclusive chauffeur service for the annual conference of the World Economic Forum in Davos 2007. They were being driven around in Audi with SynFuel Without any technical modifications.
  • Audi has the highest publicity in terms of promoting eco-friendly compared to the other luxury car. Audi e-tron is brought in for the Clean Energy Expo Asia (CEEA) 2010, an event under the umbrella of SIEW. High performance sports car. Uses lithium-ion battery Will launched in 2012.
  • NOT GREEN Audi’s brand has a certain lifestyle and by being green it will compromise its’ core value. It looks heavy & luxury cars are high in fuel-consumption GREEN They run a few roadshows/campaigns Their LED lights can save energy
  • it centers around the concept of developing modular powertrain technologies that can be utilized either individually or in combination, depending upon vehicle class, usage profile and customer requirements. The only automotive brand in the world to have received an ISO-standard Environmental Certificate concerted improvements to our internal combustion engine powered vehicles even greater efficiency using hybrid drive concepts emission-free driving with fuel cell and battery-powered vehicles The goal of our comprehensive commitment to the environment is emission-free mobility – for example with fuel cell drive systems, which will enter series production in Mercedes-Benz passenger cars in 2010, Mission: We give our best for customers who expect the best & we live a culture of excellence that is based on shared value. The principle of sustainability mobility underlines all of our thoughts and actions. Hence, Mercedes Benz is fully committed to environmental protection
  • The features are based on a low centre of gravity, partly the result of the installation of the batteries under the passenger compartment, in the “sandwich” structure of the vehicle floor. This gives the car excellent road-holding and sprightly handling characteristics – qualities that clearly set the A-Class E-CELL apart from other electric cars, which often have heavy and bulky storage batteries located in the boot or by the rear seat.  http://www.emercedesbenz.com/autos/mercedes-benz/a-class/mercedes-benz-a-class-e-cell-overview/ For inter-city usage
  • BlueEFFICIENCY is a very good example of this: to reduce vehicle weight, aerodynamic drag and rolling resistance even further, and organise energy management even more efficiently
  • SNAPSHOT THE WEBSITE Blue TEC HYBRID= clean diesel combined with electric drive system. Combine 2MB technologies to form an innovative & future-oriented drive concept. Helps in reducing consumption and more dynamic handling. Hybrid technology is an important step in the quest to control the energy consumption of vehicles more intelligently, thereby reducing the consumption of fossil fuels. In principle there are three different variants: micro hybrid, mild Hybrid and full hybrid. Blue DIRECT= latest generation of engines from MB. Lower consumption, lower emission, higher output and torque. F Cell = innovative leader amongst fuel cell drive system (does not require fossil fuels like diesel/petrol. Electrical energy is generated in the fuel cell) E Cell = electric mobility that breaks new ground (an innovative battery electric & locally emission free drive system with a range of more than 200km) E Cell Plus = electric mobility suitable for long journey (combination of battery/electric drive and a efficient combustion engine) F800 = efficiency meets elegance NGT= a drive technology with extremely low exhaust emissions which is based on two different fuels
  • Wood chippings used to produce SunDiesel
  • Have Blue Efficient CNG
  • Reduce emission of co2 Less emission, less performance Every new generation consume farless energy by delivering more joy than the previous model
  • Reduce emission of co2 Less emission, less performance Every new generation consume farless energy by delivering more joy than the previous model
  • Promising R&D Hydrogen
  • Auto Start Stop function which save fuels whenever the vehicle comes to a standstill and therefore reduces emission levels Conversion of energy while braking
  • BMW ActiveHybrid is a further intelligent form of energy management. A perfect combination of electric motor and internal combustion engine, supported by the latest batteries and coordinated through technically mature hybrid management. It\\'s no coincidence that we call our hybrid models ActiveHybrid: driving a BMW remains a passionate, exciting and above all unique experience.
  • Powered 7 series
  • Survey done by the Siemens & Economist Is there a market in Singapore? DOES THIS MEANS SINGAPOREANS CARE?
  • During my survey, I found out that none of them actually owns an eco-friendly car and only 2 of them know someone who owns one. And those eco-cars are Toyota & Honda.
  • Most of them are cynics. Have the perception that eco friendly cars are expensive Lack of service stations/too much hassle Expensive and hard to maintain in a long run
  • Who do you think drive the green cars? Why? Apparently the process of making batteries for hybrid is harmful to the environment. However in a long run, the emissions produced by a normal fuel car is more harmful than
  • Would you consider getting one? Why? Have the perception that eco friendly cars are expensive Lack of supporting infrastructure such as service stations hence result in too much hassle Expensive and hard to maintain in a long run Hybrids are best in the start-stop traffic of an urban environment
  • How would you rate the importance of these buying factors: performance, fuel consumption, design People who own a luxury car prefer design, performance then fuel consumption For people who own a normal, mainstream car, they’d prefer fuel consumption, design, performance
  • The amount of $$ govt rebates to the owner if the car is deregistered and scrapped. Govt will pay you less if you scrap a green car cause you paid less in the first place. hybrid cars are taxed according to their power or engine output, which means they pay quite a high road tax as well
  • Is green appealing in luxury market Most of the people think that people who drives eco-friendly cars are those who are ‘boring’, safe, well-to-do, If the car is cool, people want to be seen in it.

Future Of The Car Industry in Singapore Presentation Transcript

  • 1. BMW Asia Singapore January 2011 BMW: Future of the Car Industry Q3 2010 and 2011
  • 2. BMW Asia Singapore January 2011
  • 3. BMW Asia Singapore January 2011 “ Green is no longer progressive. It is expected.”
  • 4. BMW Asia Singapore January 2011
  • 5. BMW Asia Singapore January 2011 8 respondents answered Toyota 4 respondents answered Honda 2 respondents answered Mitsubishi 1 respondent answered Porsche “ Any Japanese car brands” “ What do you mean by eco-friendly?” Toyota/Honda ranked the highest When I mentioned the word ‘eco-friendly car’, what’s the first car brand that comes to your mind?
  • 6. BMW Asia Singapore January 2011 Moving Forward
  • 7. BMW Asia Singapore September 2010 Toyota Prius Hybrid The most popular green car in the world. High-fuel economy, plenty of versatility & a reasonable price. Disadvantages: Low at performance, “it handles like an appliance” Positioning: Fun to drive + environmentally responsible Won a series of awards such as ‘Toughest Cars on the Road’, Best Overall Value, Highest owner loyalty & etc
  • 8. BMW Asia Singapore January 2011 What is Toyota doing? Innovative technologies Plug-in Hybrid Vehicles Electric Vehicles Hydrogen Fuel Cell Vehicles Natural Gas Hybrid
  • 9. BMW Asia Singapore January 2011 Future of Toyota Source: Toyota Website
  • 10. BMW Asia Singapore January 2011
  • 11. BMW Asia Singapore September 2010 Honda Hybrid Insight “For people who had had enough squeezing between the road.” Economical, fun driving family car. Positioning: A ‘must-have’ fun-driving car & enable people to make an impact Won a series of awards such as “Greenest Vehicle of 2010”, “Excellent Value 2010”.
  • 12. BMW Asia Singapore September 2010 Honda Hybrid Insight Scoring function: The leaves indicate the level of fuel-efficiency. Guidance function: The background color indicates the fuel-efficiency of your driving. Econ Mode: Modifies certain engines for a more fuel-efficient driving.
  • 13. BMW Asia Singapore September 2010 What is Honda doing? Honda sees fuel cells as the ultimate source of clean energy Open up the possibility of a home-use hydrogen supply system. Solar Hydrogen Station
  • 14. BMW Asia Singapore January 2011 Changes for the Better
  • 15. BMW Asia Singapore September 2010 Mitsubishi i-MiEV in Singapore 2010 will supply 50 i-MiEV for Singapore's 3 year Electric Vehicle task force's “test- bedding project” Entitled to almost 50% cheaper price if one is willing to take part in the study. Entitled to 20% discount for venues at the HortPark in Alexandra Road if the couple have taken at least 8 environmentally-friendly measures for their wedding. Source: straits times
  • 16. BMW Asia Singapore January 2011 Now, let’s look at what are our competitors doing
  • 17. BMW Asia Singapore January 2011 Progressive design & progressive technology
  • 18. BMW Asia Singapore September 2010 AUDI A3 TDI Entry-level Luxury Car. Earns its environmental credentials & 2010 Green Car of the Year. Positioning: Stylish, and fun to drive. U.S.P: exceptional fuel economy & low emissions.
  • 19. BMW Asia Singapore September 2010 AUDI Q7 TDI Green Car Award 2009 TDI -> cleanest diesel in the world. The ONLY car who meets Euro 6 emission standards. Positioning: Efficiency, performance and comfort. Disadvantages: Driving feeling is “heavy”, engine is not quite as smooth
  • 20. BMW Asia Singapore September 2010 What else is Audi doing?
    • TDI
    • - smooth, sporty & economical.
    • - became a trend setter.
    • Audi Space Frame
    • - uses light materials (aluminum) to cut fuel consumption.
  • 21. BMW Asia Singapore September 2010 What else is Audi doing? c) Digital Collateral - Scan barcodes on the car model allows visitors to view the brochures from e-library/phone. - Also provide complimentary SMS for visitors to populate the libraries D ) SynFuel - new type of synthetic fuel: liquid & based on natural gas. - result of intensive research work together with Shell - can be used in any Audi diesel vehicle
  • 22. BMW Asia Singapore September 2010 AUDI in Singapore
    • Official car for the Singapore International Energy Week (SIEW).
    • Feature the Audi Q7 and the Audi e-tron.
    • Audi e-tron : 4 electric motor power the vehicle, lightweight construction, 0-100 km/h in 4.8 sec
  • 23. BMW Asia Singapore January 2011 On a scale of 1-10, how ‘green’ do you think Audi is? Why? On average, Audi was rated a 4 “ Their LED lights & they run some campaigns before.” “ Audi’s core is lifestyle & performance. They won’t compromise.”
  • 24. BMW Asia Singapore January 2011 Road to the future.
  • 25. BMW Asia Singapore September 2010 Mercedes Benz A Class E-Cell Less heavy & bulky Powered by lithium-ion batteries MB’s second electric car. It will be launched in Europe first. Positioning: High in usability and comfortable family car.
  • 26. BMW Asia Singapore January 2011 What are they doing? Mission: Emission-free driving. Join us on our journey. BlueEFFICIENCY technologies
  • 27. BMW Asia Singapore January 2011 What are they doing? Blue Tec HYBRID F-cell, E-cell, E-cell Plus Natural Gas Technology Blue Direct
  • 28. BMW Asia Singapore September 2010 What else are they doing?
    • Use renewable raw materials for both interior & exterior.
    • - The seat covers of new C-Class include 15% pure sheep’s wool.
    • - Fibre which are obtained from banana plant partially replace the conventionally glass fibre structure in A-Class Cope.
    • SunDiesel.
    • - Produced from plant residues
    • - Almost completely CO2 neutral
  • 29. BMW Asia Singapore January 2011 Mercedes in Singapore They do not have any Hybrid car in Singapore yet. C-Class B-Class E-Class
  • 30. BMW Asia Singapore January 2011 On a scale of 1-10, how ‘green’ do you think Mercedes Benz is? Why? On average, Mercedes was rated a 5 “ They had awesome ideas with the development of fuel cells.” “ I think their A-Class has C engine or something like that.” “ It’s a performance, classic car. I can’t relate it to green.”
  • 31. BMW Asia Singapore January 2011 What is BMW doing?
  • 32. BMW Asia Singapore January 2011 The Common Perception CO2 Performance Majority of the respondents believe that less emission means less performance
  • 33. BMW Asia Singapore January 2011 BMW CO2 Joy BMW believe in consuming far less energy but increase the driving pleasure.
  • 34. BMW Asia Singapore September 2010 How? Blue Efficient Dynamic Technologies Lightweight Construction Electric Power Sterling Auto Start Stop Brake Energy Regeneration Petrol/diesel engine
  • 35. BMW Asia Singapore September 2010 BMW Active Hybrid A combination of electric motor & internal combustion engine, supported by batteries & coordinated through hybrid management. Used on 5 Series.
  • 36. BMW Asia Singapore September 2010 BMW Clean Energy- Hydrogen 7 World’s first production-ready hydrogen vehicle. Putting 100 of them to test as loan cars for leading figures from the worlds of culture, politics, business & media. Built around a combustion engine that can switch on demand between petrol mode & hydrogen power. Burns the hydrogen in combustion engine.
  • 37. BMW Asia Singapore January 2011 Are you aware of BMW’s “efficient dynamic” concept? “ Huh? What?” “ I think I’ve heard about it somewhere” Half of them have heard/seen but only 1 of them is truly aware of the concept.
  • 38. BMW Asia Singapore January 2011 On a scale of 1-10, how ‘green’ do you think BMW is? Why? On average BMW was rated 3 “ This is how BMW supposed to be. They need to be fun & fast & aggressive.” “ They can be ‘green’ but they chose not to.”
  • 39. BMW Asia Singapore January 2011 “ Singapore is the greenest city in Asia 2011” -Channel News Asia
  • 40. BMW Asia Singapore January 2011 How many people own/or know someone who owns an environmentally-friendly car? Out of 15 respondents no one owns an eco-friendly car and 2 knows someone who owns one.
  • 41. BMW Asia Singapore January 2011 Culture in Singapore 60% of them believe there are market for eco-friendly cars in Singapore. “ No, Singaporeans don’t really give a shit.” “ Yes the dense population and cosmopolitan mentality create a good market for these cars.” “ It can be done if we are more educated and there are more publicity done.”
  • 42. BMW Asia Singapore January 2011 Buying Habits in Singapore “ Younger, upper middle class. They have resources & more environmentally conscious.” “ People who are fooled by the advertisement?” Most of them believe that green cars are expensive and not practical. “ People who are rich & have all the time in the world.”
  • 43. BMW Asia Singapore January 2011 Buying Habits in Singapore “ Not enough stations available and the gas is pricey” “ Troublesome lah” “ Fuel-efficiency as most of the time is spent city-driving rather than on the highways” Most of them will not consider getting one. 2 said “yes” and 3 answered “maybe”.
  • 44. BMW Asia Singapore January 2011 Buying Habits in Singapore How would you rank the importance of these buying factors? Fuel consumption Design Performance
  • 45. BMW Asia Singapore January 2011 Buying a Hybrid in Singapore
    • In Singapore, after reaching 10 years of age, cars must be scrapped or face hefty road taxes.
    • When they scrap their cars they’re entitled to receive money under the “Preferential Additional Registration Fee” (PARF) plan.
    • Singapore’s vehicle residual value is greatly influenced by the “scrap value” of the car.
    • If you purchase a hybrid you’re entitled to 40% of tax rebate of the Open Market Value of the car.
    • Lower the value, will result in a higher depreciation for Green vehicles in Singapore.
    • Also, hybrid cars are taxed according to their power or engine output, which means they pay quite a high road tax as well. Hence a Hybrid car tends to be 20-30% more expensive compared to a normal diesel car.
    Source: Land Transport Authority, Singapore
  • 46. BMW Asia Singapore January 2011 Do Singaporeans care? ALL of them are concern about oil price because of the inflation & not because of environmentally-conscious. If one day the oil price has increased tremendously they will either take public transport or opt for a smaller, more economical car. Middle-class don’t really care as long as they get to wherever they have to go whereas the higher-class choose based on what they like and the design, brand of the vehicle.
  • 47. BMW Asia Singapore January 2011 The Future of the Car Industry No one is doing anything special for the green market. Eco-friendly cars will be a niche market in the next 5-10 years. Cars in Singapore is not really seen as a necessity but more of a status symbol. Need to be more well-equipped with service centers. More contagious ideas to change the behavior. IS GREEN CAR APPEALING/COOL?