Singapore Second Hand Cars Industry

1. Singapore has the Highest Penetration of Online Sales with 90% Online Sales

Increasing internet and smartphone penetration leading to high sales facilitated by online platforms such as Carro and others.
Due to two-month long CB measures and tight border restriction, overall sales fell. Online sales saw strong growth; online retail proportion doubled in 2020 making up 12% of total retail sales.
With online platforms gaining a lot of traction in the industry, it is expected that dealerships with physical stores will follow suit and increase their presence online to expand reach.
Dealerships are expected to introduce their own official website/platforms to showcase their used car inventory.
Online auto portals are expected to venture into omni-channel experiences.

2. Singapore sustains 1^st rank in Asia in the World Bank’s Ease of Doing Business index 2020, ranked 2^nd globally

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In 2020, Singapore ranked 2nd out of 190 countries in the World Bank’s Ease of Doing Business Index. The country has maintained its second position for four consecutive years.
In the Global Competitiveness Index ranking, Singapore stood in 5th position in 2021, down from 1st the year before on the basis of unfavorable geography.
Presence of high investment and R&D expenditure. Automobile manufacturers are focusing on connected and autonomous driving vehicles to play a significant role over the coming years.

3. High Employment Rate and High Labor Force Participation Rate Causing an Increase in Demand for Personal Vehicles

Workforce and Minimum Wage:

The size of the work force in Singapore was 3.7 million, with 70.5% Labor Force Participation Rate in 2Q 2021, indicating the strong ability of the economy to create employment. The country saw a Labor Turnover rate of 1.9% as of 2Q 2021 which suggests that the Total Labor Force should increase over the coming years.
Singapore does not have minimum wage laws or regulations. According to the Ministry of Manpower in Singapore, employees should be paid based on their skills, capabilities and competencies.

Car Rental Market Share, Industry Statistics