By Samuel Ee

AS THE new car market contracts sharply this year and the next, most distributors agree that automotive brands which are less established may stall and perhaps even disappear.

Not all are awaiting the inevitable though. Some brands are preparing for the new reality of a shrinking market by going on the model offensive and a few makes that used to have a strong following here decades ago are fighting back in other ways.

One of them is Renault, whose cars used to be a popular sight on Singapore roads in the 1960s and 1970s.

Wearnes Automotive, which has been distributing the French marque here since 2006, declined to comment on Renault's current brand image.

But an executive did say that the company has sold a total of 368 passenger and commercial vehicles in the first nine months of this year.

Of these, 230 units were passenger cars. This compares with 309 Renault cars for the whole of last year, and 455 units in 2007.

The executive explained: "The reason for the slower sales is because we are waiting for the arrival of the new products such as the Scenic, Grand Scenic and Megane Hatch."

Another brand that has suffered in recent years is Alfa Romeo. The sporty Italian make had an enviable image here in the 1970s and 1980s. But in 2008, distributor EuroAutomobile moved just 75 cars. It is faring better this year, with 104 units sold from January to September.

But when compared with another sporty make such as Porsche, for example, the German sports car manufacturer has much higher year-to-date sales of 171 units despite prices that start from $232,000.

So what happened to Alfa?

"It's no great secret - quality suffered," admitted Melvin Goh, managing director of EuroAutomobile. "We have all heard about the issues that surrounded Alfa in the 70s and 80s. It was really a very big shame because dynamically, the cars were fantastic."

Despite this, however, he said that Alfa still has a "powerful brand following".

"As with any product with a history that spans 100 years (2010 is Alfa's 100th anniversary), there are going to be good times and bad times," said Mr Goh. "To their credit, the problems were acknowledged and addressed and now the brand is coming back stronger than ever."

As proof of this resurgence, he cited a June 2009 JD Power survey conducted in Germany.

"Alfa was ranked the same as Mercedes in second place - ahead of Audi, BMW and Toyota," he said.

He said that huge strides in reliability were made, and from the 155 to the 156 models, "the general consensus among the motoring press was that it was a quantum leap".

"Then with the 159, the leap in quality was just as great again," said Mr Goh.

Global sales figures back this up. At the end of August this year, Alfa sales were 8.8 per cent higher compared with the same period in 2008, and the car maker expects full-year volume to be 11 per cent up from the year before.

He added: "The essential personality of the brand has not been compromised - it is still about the beauty and passion of driving, but with reliability, comfort and smoothness now part of the equation."

In Singapore, EuroAutomobile expects its newly opened second showroom in the traditional Leng Kee auto belt to further boost volume.

"The Leng Kee showroom is essential when you are rebuilding a brand. It is all about people experiencing your current product," he said, adding that the number of test drives there was "incredible" compared with those at its flagship showroom in Teban Gardens. Many walk-ins are new to the brand too.

Mr Goh said: "You don't invest in a Leng Kee showroom unless you have confidence in the brand, and we have always had a great deal of faith and belief in the brand."

This article was first published in The Business Times.