SUBARU volumes soared this year after prices were capped from the first quarter onwards but the boss of the Japanese dealership would rather put it down to his strategy of 'aggressive bidding' of COEs.

"We didn't increase the price of the Subaru Impreza even after the COE quota was cut in order to get the kind of volume we wanted in expectation of the new model coming," says Glenn Tan, group chief executive of Motor Image Enterprises, the regional distributor for Subaru. "But more importantly, we made sure that we bid to get a COE."

He says that 95 to 100 per cent of customer orders get a certificate of entitlement (COE) in the first round.

"That's how we grow our volume on the road so that the Impreza name would be high on the list of someone looking for a Japanese car," explains Mr Tan.

As a result, Subaru has accelerated to the Top 10 list of Singapore's most popular car brands (among members of the Motor Traders Association of Singapore). It was in No 9 position as early as the end of the first half, after finishing 2006 in 11th place.

Motor Image is now preparing to launch the third-generation Impreza, but Mr Tan says the current second-generation car will be sold alongside it until stocks run out. The reason is that the new model is only available as a five-door hatchback for now. The new four-door sedan model does not arrive until later next year, although it is already being offered in the North American market.

"Some customers may still want a sedan version so we ordered more of the current car in advance," Mr Tan says, adding that production of the second-generation model has already ceased in Japan. "I can't assume that if I move straight into a hatchback model, everyone will buy it."

He predicts that stocks of the current Impreza sedan will run out by the first quarter of next year.

"By that time, people would have accepted the new Impreza hatchback."

Apart from its body style, the new model will also be more expensive. The current 1.6-litre car with a manual transmission starts from $52,888 while the new 1.5 manual starts from $59,888.

"The previous Impreza had good driveability but there were complaints about its quality and small interior. Some people also said it didn't look so nice. So the new car is now nicer, bigger and has a new double wishbone suspension for better handling and ride comfort," says Mr Tan, adding that the new 1.5-litre engine is also more powerful and the automatic gearbox has a manual shift function. The new Impreza is also available with 2.0 and 2.5-litre engines.

So will a more expensive model mean lower sales?

"No, because the price point is about the same as the original Imprezas in mid-2006," says Mr Tan.

In fact, he expects to end the year with total Subaru sales of 3,500 to 3,600 units - up significantly from about 2,500 last year.

"We are targeting sales of 300 to 400 cars a month, depending on how successful this new Impreza is. I think it will be because in Japan, Impreza sales have already doubled or trebled. Sales have also picked up in other parts of the world, like Australia and Europe."

And because Motor Image also distributes the marque in Malaysia, Thailand, Indonesia, the Philippines, Hong Kong, southern China and Taiwan (which it began representing this year), he expects to finish 2007 with about 6,000 units. But his 'mid-term goal' for the region is 10,000.

"We want to be a big player, not just in Singapore but in Asia." says Mr Tan.

"We are targeting sales of 300 to 400 cars a month, depending on how successful the new Impreza is."
- Glenn Tan, group chief executive of Motor Image Enterprises