Super-luxury car brands slow down

Singapore - The slumping economy ensured that the super-sports and ultra-luxury car segment shrank in 2016, with the majority of brands slowing down.

Only one marque outperformed the market - Aston Martin, with registrations soaring 180 per cent to 14 units, said the Land Transport Authority (see table).

McLaren was the only other brand that managed to speed into positive territory last year, increasing 25 per cent to five units.

The LTA's registration numbers include both official and parallel imports.

Thanks to the performance of Aston Martin and McLaren, the dip in the super-luxury market did not look too bad, shrinking just 8.3 per cent overall.

Aston Martin's performance in 2016 was particularly noteworthy, given that it was distributor Wearnes Automotive's first full year of operation as its dealer. It officially assumed the Aston Martin franchise in August 2015 from the previous dealer, who had represented the brand for 21 years.

Wearnes said that it immediately set about building the brand by investing in the infrastructure, such as its full-service showroom in the prime Leng Kee Road motor belt and trade-in support for new car buyers.

Pang Cheong Yan, managing director of Wearnes Automotive, said: "Aston Martin is a well-desired brand in Singapore. Our investment in the brand and facility was a significant first step to re-instil brand confidence."

But one competitor also pointed out that the numbers were likely achieved with some very attractive pricing.

As for the McLaren brand, it also moved to a new distributor in 2015. Eurokars had secured the British sports car make from Wearnes early that year, after the latter relinquished the franchise voluntarily.

Among the best of the rest in 2016, Rolls-Royce led the premium pack. The brand with the "Spirit of Ecstasy" flying lady hood ornament dropped just one registration or 5 per cent to 19 units.

Following closely was Ferrari, which trended about 10 per cent downwards with 37 units.

Bentley was next, falling 20 per cent to 53 units. However, Bentley continues to be the brand which racks up the biggest volumes in this rarefied segment.

Finally, Lamborghini was down 25 per cent to 15 units.

The dip in the super-luxury segment accelerated in the second half of 2016 as the economy worsened, said Michael Lim, chief executive of the Motorway Group, the authorised distributor of the more than S$6 million Koenigsegg as well as one of the biggest dealers of used super-sports and luxury models.

Still, he remains optimistic about 2017. "There should be some buying," he said, especially if distributors cut prices to attract prospects. "I see a new group of buyers who are upgrading as prices fall and depreciation becomes lower. Many people aspire to own a supercar. For them, it's a dream."

This article was first published on February 11, 2016.
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