Business plan for automobile industry in singapore

1. GLOBAL BUSINESS ENVIRONMENT
Scope of Automobile Sector in Singapore
SUBMITTED TO:
DR. MONIKA JAIN
SUBMITTED BY:
SHUBHAM RAJ DEVOLIA
19DM211

2. INTRODUCTION
There can't be a deny on the way that the vehicles have turned into the key part
of our life. Today world over development of automobile is simply past
imagination these years. It is scarcely a pointer of nation economy, however a
person's advancement graph can be estimated on the grounds of the car vehicles
utilized by him for everyday work and furthermore for pleasure, status and design
too.
Negotiation during car purchases is customary but limited due to the lack of
competing dealers. The limited size of the Singapore market results in some
brands not offering the full model line in Singapore. Unlike in Australia, where
the US Honda Accord and the Japanese Honda Accord (re-badged as the Acura
TSX in the United States) are sold, only the Japanese Honda Accord is sold in
Singapore. Some brands, such as Saab and Volvo (except the Volvo S60R) are
only offered with automatic transmission even though manual transmission cars
are sold in the car's home market.
Although car prices are high, servicing costs are reasonable compared to in the
United States and Western Europe in terms of labour charges. Sport (SUVs)
and pick-up trucks are not as common in Singapore as in the United States and
Canada. So, pick-up trucks in Singapore are relatively expensive compared to
other Southeast Asian countries, and some dealerships do not import pick-up
trucks like the Nissan Navara and Thai-built Ford Ranger at all. Japanese car
manufacturers have the largest market share. Some Japanese cars are imported
from countries other than Japan. For example, the Toyota Vios is imported
from Thailand, whereas the JDM version is called Toyota Belta. Initially,
the ninth generation Toyota Corolla sold in Singapore was a Japanese model,
while the facelift version is a wider and longer Corolla Altis from Thailand. Kei
cars (like the Mitsubishi I, Subaru R2, and Suzuki Carry) are common in
Singapore, but not as popular as in Japanese domestic market as most Japanese
car manufacturers seldom release Kei cars in Singapore. Besides this, there are
some grey imports of Kei cars like Daihatsu Copen. European car manufacturers
are well represented. On the more expensive segment of the market, European
cars sold in Singapore include Aston Martin, Ferrari, Mercedes, Bmw, and
others. Skoda, Fiat, Renault, Peugeot and Citroen are among the less expensive
European cars sold in Singapore. American cars have a low market
share. Chrysler, Tesla, and Jeep vehicles are sold in Singapore, such as
the Chrysler 300C, Chrysler PT Cruiser, Dodge Caliber, and Jeep
Wrangler. Chevrolet markets only Korean-made Daewoo cars, but not its
American-made models. Ford markets some cars from its European line, not its
American product line. Even Subaru, a Japanese carmaker, did not do well with
cars made by a US-based subsidiary, Subaru of Indiana Automotive, which
exported the US-made Tribeca to Singapore.

3. New car industry is significant supporter of the economy of Singapore yet the
market of the used car is additionally on the rise. The move in inclination is
attributed because of two factors-the lower cost of used cars, and expansion of
composed chains moving pre-owned cars, that give guarantee. While new car
deals keep on stagnating, the business diagram for used cars is moving upwards.
Interest for cars and finances amid 2019 will see the used car market in the
Singapore turn into the car industry's 'growth engine' as indicated by specialists.
The contraction in vehicle sales will accelerate next year and hit rock bottom in
2021 despite an improving consumer outlook and a rise in ride-sharing demand,
said a Fitch Solutions report yesterday.
It noted that the drop in new vehicle registrations will worsen sharply from an
estimated 11 per cent contraction this year to 20.1 per cent next year. In the longer
term, new vehicle registrations will continue sliding, contracting at an annual
average rate of 25.4 per cent over 2020 and 2021 before bottoming out.
At that point, Fitch Solutions analysts believe the market will touch annual new
registrations of just under 46,000 units, less than half of the 116,148 seen at the
market's last peak last year. This is due to the very cyclical nature of vehicle sales
here and the extremely high cost of car ownership, Fitch says. Singapore’s
consumer market has been on the upturn, buoyed by wage growth and low
unemployment, but may see slowing expansion in the wake of trade tensions,
rising interest rates and a pick-up in imported inflation, it added. This will further
erode the likelihood of consumers making larger purchases, such as new vehicles
The extent of the potential used car finance market could predominate the new
car market; the yearly used car market is multiple times the measure of the new
car market, which means account levels in the two segments are as of now nearing
equality, in spite of lower dimensions of used car money entrance. Princely
shoppers are additionally looking special fixed and altered cars of the old period.
It has turned into a materialistic trifle for them to drive and sparkling exemplary
car demonstrate which is uncommon to discover. A large portion of the purchaser
purchase to these old car as it speaks to the time and makes them care for the car.
The best about them is that the esteem increments with time rather than
devaluation.
Earlier, buyers purchased used cars just through their friend network and
relatives. Considering the development prospects of this market and to oblige the
requests of shoppers, some established players have additionally begun entering
this market. Established players have made the entire procedure of purchasing
and moving simpler and straightforward.

4. SOME HIGHLIGHTS ABOUT AUTOMOBILE INDUSTRY OF
SINGAPORE:
Singapore's car ownership rate is roughly 11%. In the US, it is nearly 80% and it
is just under 50% in Europe.
Despite the government's policies to reduce the number of cars, there are
nearly one million vehicles on Singapore's roads. More than 600,000 of those are
private and rental cars, including cars used by ride-hailing services such as Grab.
Roads take up 12% of the country's total land area, which is a far higher
percentage than in many larger countries.
A new compact car costs around $99,000 in Singapore. The same car would cost
about $24,000 in the UK and the US. Despite this, the number of super-luxury
cars on Singapore roads has risen in the past decade.
The average age of cars in Singapore has steadily declined in the last 5 years and
is now 5.46 years old. This goes against the global trend where cars are much
older and are continuing to increase in age. For instance, 11.6 years in the US,
10.1 in Australia, 8.29 years in Japan and 9.73 in Europe.
MOTOR VEHICLE POPULATION
According to Figures released by the Land Transport Authority for 2018 reveal
that total vehicle population in Singapore shrunk by 0.5 per cent to 957,006, the
lowest since 2016.As of July 2019, though, there has seen a slight increase in the
first half of the year with the vehicle population up to 967,768.
The number of privately-owned cars registered last year, however, saw unusual
growth. There was a 0.9% rise in the number of private passenger cars which
stands at 551,575 in 2018 compared to 546,706 the previous year. And in the first
half of 2019 the number of private passenger cars on the roads has increased
slightly once again – totalling 556,155. One reason for this was the exit of ride-
hailing firm Uber and with it, the halt to an aggressive private-hire fleet
expansion. As a result, car Certificate of Entitlements (COEs) previously soaked
up by Uber and other private-hire firms all went to individual car buyers. Overall,
though, there has been a reduction of more than 55,000 private cars in Singapore
since 2013 when there were 607,292.
The overall number of rental cars has risen in the last five years from just 16,396
in 2013 to 66,480 in 2018. However, this year’s number has dipped from 68,083
in 2017, which could in part be attributed to Uber pulling out of the market in the
same year. The number of taxis on the road has shrunk to 20,581 - the lowest in
more than 10 years. This is being attributed to competition from private-hire cars

5. such as Uber and now Grab and Gojek. This compares to 27,695 in 2013. In
addition, cab rides fell by 17.6 per cent to 647,000 trips a day.
The number of buses on the roads has gradually increased over the years and in
2018 there were 19,379, a slight increase on last year’s 19,285. In addition, bus
ridership rose by 2.2 per cent to hit the four million mark for the first time. This
is in line with Singapore’s policy to reduce car ownership and increase public
transport options.
The motorcycle and scooter population in Singapore currently stands at 139,311
as of July 2019 which is a slight increase from last year’s 137,480. However, this
is less than it was in 2017, when there were 141,916 motorcycles and scooters on
the roads. The overall downward trend in the motorcycle population is likely to
have been impacted by the National Environment Agency's offer of $3,500 for
riders to scrap their older vehicles. The dwindling motorcycle population has also
been attributed to the falling COE quota. Open COEs are secured almost
exclusively by car bidders, so motorcycles lose a portion of their COE supply -
which eventually influences the motorcycle population - year by year.
Percentage of car ownership in Singapore
There has been a drop in the percentage of households owning a car, from 42.1%
in 2012/13 to 35.3% in 2017/18.

6. Most popular car brands
The Land Transport Authority’s (LTA) 2018 registration figures show that two
brands continue to dominate the market – Honda and Toyota. This year, they’ve
swapped places with Honda at the top and Toyota in second place. Both brands
sold fewer cars here in 2018, with Honda taking number one spot by virtue of it
maintaining its 2018 sales close to its 2017 levels. The rest of the top five sees a
rather larger shake up though: Mercedes-Benz has moved onto the podium,
followed by Hyundai in fourth.
The top five brands – Honda, Toyota, Mercedes-Benz, Hyundai, Mazda – sold a
total of 53,338 cars between them, which accounted for 66 percent of the 80,281
of passenger cars sold here in 2018.
Singapore Passenger Car Registrations 2017-2018
Singapore's Top 6 Car Brands 2018 - Percentage of registrations by body
style

7. Luxury cars
The number of super-luxury cars on Singapore roads has been rising steadily for
the past decade. Since 2008, their car population has risen impressively by four
times in the case of Bentley, and two to three times in the case of Lamborghini,
Ferrari, Aston Martin and McLaren.
The top six luxury car brands in Singapore in 2019 – in order of highest number
of cars sold are;
1. Bentley (61)
2. Lamborghini (38)
3. Ferrari (37)
4. Rolls-Royce (31)
5. Aston Martin (26)
6. McLaren (23)
Among the six brands (with cars mostly in the above-$750,000 price range) three
posted higher sales here, according to latest figures from the Land Transport
Authority.
In this segment, Bentley was the top-selling brand, although sales fell from 70
units in 2017 to 61 last year. McLaren and Lamborghini saw sales more than
double in 2018.Lamborghini was the best-selling sports car brand, with 38 units
sold. Ferrari was one car behind at 37 units. McLaren sold 23 units. There were
31 Rolls-Royce cars sold in 2018, a 24 per cent increase from the previous year.In
total, the six high-end brands accounted for 216 cars sold - 13.1 per cent more
than in 2017.
Electric vehicles in Singapore
Despite making up a tiny percentage of the overall car population in Singapore,
electric vehicles (EV) and plug in hybrid electric vehicles (PHEV) are gaining
popularity. Singapore has come a long way from the 1 fully electric car that was
on the streets between 2014 and 2016, with 314 registered fully electric vehicles
in 2017. Similarly, plug-in electric hybrids have also seen a 338% increase
between 2014 and 2017. And in 2018, the EV population rose even further to 560.
While there is still a long way to go for electric cars to become a common sight
on Singapore's roads, there has been an increase of electric vehicles in the car-
sharing industry. For instance, Grab added 200 EVs to its fleet in 2019; so even

8. if there isn't a continuing increase in private EVs, there will be an increased
chance of you riding in one when you use a rideshare service.
Total Number of Electric Vehicles and Electric Vehicle Plug-Ins in
Singapore by Year
Older cars (above 10 years)
Although in general, cars aged older than 10 make up a miniscule portion of the
total vehicle population in Singapore, the number of car owners choosing to hold
on to their cars even after they turn 10 years old has increased each year from
only 7.7% in 2013 to 31.5% in 2017. This upward trend in car owners keeping
their older cars and therefore renewing COEs on 10-year-old cars correlates with
the decline that has occurred over the same period in average COE prices. This
correlation suggests that the concurrent decline of COE prices may be one
contributing reason alongside other changes in the economy that more people are
choosing to hold on to older cars rather than buy a new one.
The number of COE revalidations - extending the lifespan of a COE's 10-year
tenure by paying a prevailing quota premium - for last year is expected to hit a
record of some 37,000, up from around 31,000 in 2017. The LTA has not yet
completed the tally for revalidations last December.
The average age of cars in Singapore by the end of 2018 was 5.46 years. This is
higher than the average age of a car in 2007, which was 3.1.

9. However, 2018's average car age of 5.46 years reflects a continuing trend of a
decline in the average car age since its peak in 2014 at 6.58 years. This decline is
a departure from the pattern 2006 to 2014, which saw a dramatic increase in the
average age of cars from 3.2 years to 6.58 years. This may be explained partly by
the decline in COE prices in 2018, which led to more people buying new cars or
swapping their older cars for newer versions. This trend also stands in contrast to
the trend of car ages increasing over time in other well-developed countries. For
instance, the average age of cars in the US is 11.6 years, 10.1 years in Australia,
8.29 years in Japan and 9.73 years in Europe.
THE LUXURY MODIFIERS
The Luxury modifiers will be a Luxury car modifier and used car seller. It will
be customizing old cars as per the requirement of the customer. it will also buy
cars from consumers who are willing to sell their Luxury cars and make modify
them to their luxury look and put them on auction for the highest biding if the
company doesn’t already have any customer for it. The company will also be
looking for old cars from car dump yard where there is a huge chance of getting
old luxury car in a very cheap price.
The company will also be catering in the normal used car segment where it will
sell cars will little repair and modification to the consumer. It will also provide
warranty of the car and free service for 6 months.
It will also provide discount if any modification the customer wishes to have in
their car or they provide reference to other customer for modification.
The company will also be importing vintage cars which are in demand in the
market. The company will repair and modify the car and sell it in the local market
or export them to specific consumer on demand.
The company will have an online portal where customers can look at the models
available with prices for normal cars and separate segment where Luxury cars
will be displayed and graphic customization can be done by them to give them an
idea how the final product will look to increase their satisfaction.

10. REGISTRATION REQUIREMENTS
Vehicle Registration All motor vehicles in Singapore must be registered with the
Land Transport Authority (LTA).
Importation of Brand-New Vehicles
The vehicle will be classified as brand new at registration if:
a) it is imported into Singapore directly from the vehicle manufacturer. The
vehicle must arrive in Singapore within 3 months from the Certificate of
Conformity (COC)/Completion Inspection Certificate (CIC) issue date or the date
of manufacture certified by the vehicle manufacturer/authorised agent, whichever
is later; or
b) it has been registered as a new vehicle in a foreign country which adopts the
higher or equivalent safety and exhaust emission standards as Singapore [i.e.
countries within the European Community (EC)]. The vehicle must be
deregistered within 14 days of its first registration in the foreign country for
export to Singapore and must arrive in Singapore within 3 months of its
deregistration in the foreign country.
Importation of Used Vehicles
Vehicles that do not meet the requirements of registration as brand new will be
classified as used vehicles. Only vehicles that are less than 3 years of age may be
imported and registered for use in Singapore. A surcharge of S$10,000 is payable
for each imported used car registered in Singapore.
The age of a used vehicle is reckoned from the date of its first registration in a
foreign country. For example, if your car was first registered on 16 September
2016, it would be deemed to be 3 years old on 15 September 2019. If it is not
possible to ascertain the first registration date of the car, the age of your car will
be reckoned from the first day of its year of manufacture.
All imported used cars will have to undergo an emission and fuel economy test
at the Vicom Emissions Test Laboratory (VETL) to ascertain their fuel economy
and Carbon Dioxide (CO2) figures at the point of importation into Singapore. The
combined values of the CO2 will be used for the computation of the rebate or
surcharge for the CEVS.

11. Carbon Emission-Based Vehicle Scheme (CEVS)
The CEVS takes into consideration a vehicle's carbon dioxide emission and fuel
efficiency to encourage consumers to shift to low emission models.
Cars with low carbon dioxide emission will qualify for rebates, which are offset
against the car's Additional Registration Fee (ARF) payable. Cars with high
carbon dioxide emission will incur a corresponding registration surcharge. Cars
are also subject to a minimum ARF payable of S$5,000. As electric cars and plug-
in hybrid cars consume electricity which produces CO2 emission at the point of
power generation, an emissions factor of 0.4g CO2/Wh will be applied to their
electricity energy consumption to compute their equivalent CO2 emission, during
the extended CEVS from 1 July 2017 to 31 December 2017.
Vehicular Emissions Scheme (VES)
The VES takes into consideration a vehicle’s emissions of four other pollutants,
namely hydrocarbons (HC), carbon monoxide (CO), nitrogen oxides (NOX) and
particulate matter (PM), in addition to the vehicle’s carbon dioxide emission, to
encourage consumers to shift to less pollutive models. Cars registered from 1
January 2018 to 30 June 2018 (both dates inclusive) will be assessed based on
their emissions of four pollutants of HC, CO, NOX and CO2 (i.e. PM emissions
is exempted during this interim period). Cars1 and taxis1 registered from 1 July
2018 to 31 December 2019 (both dates inclusive) will be assessed based on their
emissions of five pollutants of HC, CO, NOx, PM and CO2.

12. The VES rebate or surcharge will be determined by the worst performing
pollutant. Cars that fall under bands A1 and A2 will qualify for rebates which are
offset against the car’s ARF payable. Cars that fall under bands C1 and C2 will
incur a corresponding registration surcharge. The cars are also subject to a
minimum ARF payable of S$5,000. The minimum ARF payable will ensure that
cars will continue to enjoy a certain amount of Preferential Additional
Registration Fee benefit when they are deregistered early. This is in line with the
existing policy objective of encouraging timely deregistration and keeping
Singapore car fleet young. As electric cars and plug-in hybrid cars consume
electricity which produces CO2 emission at the point of power generation, an
emissions factor of 0.4g CO2/Wh will be applied to their electricity energy
consumption to compute their equivalent CO2 emission for electric cars and plug-
in hybrid cars registered from 1 July 2017.
Modifications to Vehicle
You are advised to consult the vehicle manufacturer and seek approval from LTA
before carrying out any modification to the vehicle. Such modifications must be
approved by the vehicle manufacturer. In addition, the modification work has to
be carried out by either the vehicle manufacturer or an agent authorised by the
vehicle manufacturer. The vehicle manufacturer or the authorised agent must
certify that the modification is done according to the procedures and requirements
set out by the vehicle manufacturer.

13. Asbestos-free Brake and Clutch
NEA requires all newly registered vehicles to have asbestos-free brake and
clutch linings. This requirement is gazetted under the Poisons Act.
High Intensity Discharge (HID)
Headlamps Vehicles fitted with HID headlamps must be equipped with an auto-
levelling feature.
Speedometer
All cars must be able to permanently indicate/display vehicular speed in units of
kilometres per hour (km/h).
STEP-BY-STEP GUIDE TO IMPORT A CAR INTO SINGAPORE
Step 1
Ensure that your car is able to comply with the general requirements and
standards as specified in the previous section.
Step 2
Obtain the following from the vehicle manufacturer or authorised agent:
a) Documents to prove that the car is new or has never been registered for use
(e.g. manufacturer invoice, V308 document issued by the Driver and Vehicle
Licensing Agency (DVLA) in UK, etc.). If the car has been registered as a new
vehicle in a foreign country which adopts a higher or equivalent safety and
exhaust emission standards as Singapore, deregistered within 14 days of its
registration in the foreign country for export to Singapore, and arrived in
Singapore within 3 months from its deregistration in a foreign country, please
submit the original registration, deregistration and export documents from the
foreign country for verification. For more details on methods to register vehicles
as brand new, please refer to Annex D. For a used car, the vehicle registration
documents issued by the foreign authority are required. The engine and chassis
numbers, inclusive of the prefix and suffix, engraved on the car must also be
identical to those appearing on the vehicle registration documents;
b) Documents to prove that the car complied with the exhaust emission standards
and vehicle safety standards as specified in the previous sections;
c) Documents issued by the vehicle manufacturer or vehicle test certificate from
TUV Rheinland or an accredited testing laboratory as listed in Annex A to show
CO2 and fuel economy data tested in accordance with the UN ECE Regulation
101 as described under the section “Technical Requirements for Imported Cars”
d) Technical specifications of the car issued by the vehicle manufacturer if it is
a new make or model previously not imported into Singapore (e.g. technical
catalogue, etc.).

14. Step 3
Arrange for shipment of the car to Singapore with a shipping agent.
Step 4
Arrange with your shipping agent to obtain an Inward Cargo Clearance Permit.
Your agent will have to submit an application to the Singapore Customs using the
TradeNet® System. Permit and processing fee, Excise Duty and Goods &
Services Tax (GST) will be payable to the Singapore Customs through inter-bank
GIRO. For further information on the application for Inward Cargo Clearance
Permit, please visit www.customs.gov.sg or contact the Singapore Customs at:
Singapore Customs
55 Newton Road
#07-01 Revenue House
Singapore 307987
Tel: 6355 2000
The Singapore Customs determines the Customs Value [or commonly known as
Open Market Value (OMV)] of the car by taking into account the purchase price,
freight, insurance, handling and all other charges incidental to the sale and
delivery of the car in Singapore. Excise duty will be levied at 20% of the OMV.
GST is computed at 7% of the total Cost, Insurance & Freight (CIF) and Excise
Duty. The following documents may be required to be submitted to the Singapore
Customs for assessment purposes:
a) Original Manufacturer/Purchase Invoice
b) Freight and Insurance Papers
c) Bills/receipts relating to other incidental charges
d) Documents relating to exhaust emission test, windscreen test, etc
e) Original foreign vehicle registration documents (for used car)
f) Letter from vehicle manufacturer confirming the date of manufacture of the
car.
All documents submitted MUST be in the English language. Notarised
translations are acceptable. For further information on the determination of OMV
for vehicles, please visit www.customs.gov.sg or contact the Singapore Customs.
Step 5
Prepare documents for verification and registration of the car in Singapore.

15. USED CAR MARKET IN SINGAPORE
Regardless of a phenomenal time of development for the new vehicle market in
the Singapore, the used car market has reliably been increasingly profitable with
much higher number of vehicles sold. In all actuality, it might take a couple of
years for the re-established development of the new vehicle market to affect the
used car market, as a great many people are as yet reeling from the retreat and a
lower number of used cars are entering the market than in earlier years. This has
additionally affected the normal time of vehicles in the nation which has been
expanding over the most recent couple of years. Anyway since 2010, the quantity
of exceptionally old used cars being sold has gradually been diminishing while
there has been an expansion in the quantity of cars matured two or less being sold
second-hand.
 Certificate of Entitlement (COE): Legal document allowing a car to be
driven on Singapore roads. Can be renewed for 5 or 10 year durations.
 Open Market Value (OMV): Every car has its Open Market Value – the
price tagged on the car by Singapore Customs based on purchase price,
freight, insurance and all other charges related to the sale and shipment of
the car to Singapore. As we’ll detail later, the OMV determines the
maximum loan amount you can borrow.

16.  PARF (Preferential Additional Registration Fee): If you are looking at
a used car, you’d likely be looking at PARF cars (less than 10 years old)
instead of COE cars (Certificate of Entitlement, typically referring to a
car that has had its COE renewed). These terms are commonly used to
provide a quick indication of the car’s age. If you decide to deregister the
car before the 10-year expiry date, you’re entitled to a PARF rebate,
pegged at a percentage of the remaining OMV. Note that you may have
difficulty in securing a loan for a COE car.
 Additional Registration Fee (ARF): Lastly, there’s ARF, a tiered tax
based on the OMV of the car.
Numerous clients are detailing not having the capacity to bear to purchase another
vehicle and because of monetary limitations have swung to utilized vehicle
merchants where they want to get more for their cash or locate a decent
arrangement. The alternative of exchanging an old vehicle is likewise speaking
to many. Cost was, obviously, the most vital factor for those purchasing a used
car.
Know how much you can borrow
While an expanding number of vehicle purchasers are purchasing new cars,
regularly observed as a method for bringing down support expenses of more
seasoned vehicles, the larger part still like to purchase second-turn in request to
hold their very own costs down.
Now that we’re familiar with the terms, let’s look at the considerations when
applying for a car loan.
You can apply for a bank loan if the car is less than 10 years old from the original
date of registration, to be paid up within 7 years or less. If the car is reaching its
10-year mark, you may not be able to stretch the loan period to something that
you are comfortable with, which may affect your monthly cash flow.So say
you’ve decided on a budget of $70,000 for your used car. The maximum you can
loan is pegged to the Open Market Value (OMV) of the car shown in the table
below:

17. To gauge the loan amount that you can be eligible for, you will need to consider
these other factors:
 The bank’s minimum gross monthly income criteria
 Your current outstanding financial commitments e.g. housing loan,
personal loan, car loans, etc
Business plan:
Objective: The objective of this business plan is to start our company LUXURY
MODIFIER based in Singapore. As the cost of new car in Singapore is high as
compared to other markets like US, Uk etc. So there is huge demand for second
hand cars and people usually modify them according to their needs and this is the
market which we will cater.
Mission: Luxury Modifiers is composed of a progressive team of professionals
that strive to deliver exceptional service and leave each customer feeling like they
truly are the “best” customer! Our mission is to provide quality pre owned cars
with highly personalized care at a competitive price. Creating a new benchmark
for excellence in every aspect of our business.
Vision: At Luxury Modifiers our vision is to buy and sell cars that define quality
and luxury for the 21st century. Applying our expertise in this industry, we aspire
to transform the car market, where cars are the ultimate expression of modern
dynamism and luxury.
Key to success
1. Focus on Market Research
2. Continue Marketing Yourself
3. Know your company, inside out
4. Proper supply chain management
5. Continue to focus on Youth customers more as they are the one who go for
modification and pre owned cars mostly
Company Ownership
This Business will be established as a sole proprietorship during its initial launch
phase assuming that I have a citizenship of Singapore.
Target Market
We will be targeting different sections of the populations specially the middle
class and upper middle class income group millennials.

18. Our USP:
 From 10 steps away: Do the body panels look straight? Is it listing on one
side? Either could indicate a prior accident with underlying damage that
could be expensive to put right. Conversely, if the defect is minor (e.g.
dings in the door), use that as a bargaining point to a discount.
 From 5 steps away: Are there missing trim pieces? Does the paint still
look deep and glossy, or is it patchy, wavy in the light, or showing visible
scratches? The condition of the exterior body can help to indicate if the car
is really accident-free.
 Open the bonnet: Are there oil leaks below the car? Does the engine
compartment look relatively clean, or are oily patches visible? Does the
engine idle sound even or choppy? As the engine is the main component
of the car, repairs to it or to the transmission can wipe out a significant
chunk of your car-owning budget.
 From inside: Is the interior clean? Do seats or seatbelts look worn? Do all
electrical features work? Worn looking seatbelts tend to indicate lots of
past use, and should correlate to the stated mileage of the car. And modern
cars are filled with electrical gadgets that are a major (and possibly
expensive) bugbear to fix.
 From the driver’s seat: Is the air conditioning cold? Are there strange
sounds during acceleration, braking, or turning? Does the car pull away
cleanly or are the transmission shifts jerky? Depending on the age and
asking price, watch out for deal breakers unless we are confident that the
repair won’t be too costly

19. SWOT analysis of Automobile industry
Automobiles like Cars, bikes and public transport systems are one of the most
important building blocks for Society. Cars can be status symbol, they can be
necessary transport, they can be for sport and whatnot. So what are the strengths,
weaknesses, opportunities and threats in the automobile industry?
STRENGHTS:
1. Evolving industry: Automobiles represent freedom and economic growth.
Automobiles allow people to live, work and travel in ways that were
unimaginable a century ago. Automobiles provides access to markets, to
doctors, to jobs. Nearly every automobile trip ends with either an economic
transaction or some other benefit to the quality of life.
2. Continuous product innovation & technological advancement : With
the advent of E-vehicles & alternative fuel such as Shell gas, CNG and
others, Automobile Companies are increasing R & D expenditure to drive
the next phase of growth through use of renewable sources of energy which
may be solar, wind etc.
3. Growth shifting to Asian markets : Although American & European
market is the pulse of this Industry, but the focus is shifting to developing
markets like China, India & other Asian nations because of the rise in
disposable income, changing lifestyle & stable economic conditions.
4. Increasing demand of VFM vehicles : Intense competition in the
matured/developed markets has forced automobile manufacturers
to target developing economies. But these developing economies have high
demand for VFM products (value for money). In the automobile industry,
VFM products would be fuel efficient, high mileage vehicles because
majority of customers in these nations prefer vehicles for commuting. On
the other hand, developed nations need is of vehicles for interstate
travelling, and high speed vehicles suitable for long route with high engine
power.
5. Increase in demand of luxury commercial vehicles : Companies
like VOLVO, Daimler/Chrysler, Bharat Benz are betting high &
are targeting the developing nations due to increase in demand of Luxury
public transportation system.
6. Manufacturing facilities in Asian nations to control cost : In order to
control cost & to manage shrinking margins automobile companies
like Harley, Volvo, Bharat benz etc. are building their manufacturing
facilities in developing nations like India, China because these nations have
cheap workforce, are high in resources & are nearer to developed
economies. These are classic conditions of an emerging market.

20. WEAKNESSES:
1. Cars recalled : Controversies relating to recalling vehicles on account of
some technical dis-functionality or non-abidance to govt. led rules is
becoming very common.
2. Bargaining power of consumers : Over the last 3-4 decades the automobile
market has shifted from demand to supply market. Availability of large
number of variants, Stiff competition between them, and long list of
alternatives to choose from has given power to customers to choose
whatever they like.
3. Growth rate of Automobile industry is the in the hands of the government
due to regulations like excise duty, no entry of outside vehicles in the state,
decreasing number of validity of registration period & volatility in the fuel
prices. These factors always affect the growth of the industry.
OPPORTUNITIES:
1. Introducing fuel-efficient vehicles : Optimization of fuel-driven
combustion engines and cost efficiency programs are good opportunities for
the automobile market. Emerging markets will be the main growth drivers
for a long time to come, and hence fuel efficient cars are the need of the
hour.
2. Strategic Alliances : Making strategic alliances can be a smart strategy for
Automobile companies. By using specialized capabilities & partnering with
other companies, they can differentiate their offerings.
3. Changing lifestyle & customer groups : Three powerful forces are rolling
the auto industry. Shift in consumer demand, expanded regulatory
requirements for safety and fuel economy, and the increased availability
of data and information. Also with the increase in nuclear families there has
been increase in demand of two-wheelers & compact cars and this will grow
further.
4. Market expansion : Entering new markets like Asian & BRIC nations will
result in upsurge in demand of vehicles. After these markets, other markets
are likely to emerge soon.
5. OEM priorities: Given the increase in electronic content, OEMs need to
collaborate with suppliers and experts outside the traditional auto industry.
Accomplishing this will require changes in the way OEMs function. OEMs
will be looking to their top suppliers to co-invest in new global platforms &
this will be the driving force in the future.

21. THREATS:
1. Intense Competition: Presence of such a large number of players in the
Automobile industry results into extensive competition, every company
eating into others share leaving little scope for new players.
2. Volatility in the fuel Prices: At least for the passenger segment fluctuations
in the fuel prices remains the determining factor for its growth. Also
government regulations relating the use of alternative fuels like CNG. Shell
gas is also affecting the inventories.
3. Sluggish Economy: Macroeconomic uncertainty, Recession, un-
employment etc. are the economic factors which will daunt the automobile
industry for a long period of time.
4. High fixed cost and investment in R & D : Due to the fact that mature
markets are already overcrowded, industry is shifting towards emerging
markets by building facilities, R & D centres in these markets. But the
ROI out of these decisions is yet to be capitalized.
References
1. https://www.marketwatch.com/press-release/singapore-automotive-market-
2020-by-brands-key-companies-profile-supply-demand-cost-structure-and-
growth-opportunities-to-2026-2020-01-10
2. https://en.wikipedia.org/wiki/Driving_in_Singapore
3. https://www.torque.com.sg/news/top-10-car-brands-singapore/
4. http://www.fussfreeauto.com
5. https://www.budgetdirect.com.sg/car-insurance/research/car-ownership-
singapore-2019
6. https://www.onemotoring.com.sg/content/onemotoring/home/buying/upfront-
vehicle-costs/import-a-vehicle.html
7. https://www.straitstimes.com/business/companies-markets/slump-in-
singapore-vehicle-sales-to-worsen-in-2019-fitch
8. https://www.onemotoring.com.sg/content/dam/onemotoring/pdf_2019/Car.pdf
9. https://www.dbs.com.sg/personal/articles/my-goals/home-assets/buying-a-
used-car