SINGAPORE, Feb 10 — Chinese car brands made significant inroads in Singapore’s automotive market in 2024, capturing 18.2 per cent of new car registrations, up from 5.9 per cent the previous year.

Singapore’s Land Transport Authority (LTA) released the data in January, showing that 7,850 new Chinese-brand cars were registered in 2024, compared with 1,781 in 2023.

The Straits Times reported that nearly all of these vehicles were electric, with only 75 exceptions.

"Chinese EV brands have been particularly strong in offering mass-market options, which are not adequately addressed by automakers from other countries,” said Niels de Boer, chief operating officer of the Energy Research Institute at Nanyang Technological University.

Japanese and German brands remained dominant but saw their market share decline. Japanese brands registered 15,337 cars in 2024, up by 2,298 units from 2023, but their market share fell to 35.6 per cent from 43.1 per cent.

German brands accounted for 12,131 registrations, representing 28.2 per cent of the market, down from 32.4 per cent in 2023.

BYD led Chinese car sales in Singapore with 6,191 EV registrations, followed by MG with 536 units. Xpeng, which entered the market in August 2024, registered 336 cars in just five months.

American and South Korean brands also saw growth. American brands increased their market share from 3.2 per cent to 5.6 per cent, with Tesla accounting for 98.8 per cent of American car registrations. South Korean brands rose slightly to 7.7 per cent from 7.6 per cent, with Hyundai and Kia leading sales.

The overall car market expanded in 2024, with 43,022 new registrations, a 42.3 per cent increase from 30,225 in 2023.

Industry experts said the rise of Chinese brands aligns with Singapore’s transition from internal combustion engine (ICE) cars to EVs.

Seven new Chinese brands entered the market in 2024, bringing the total to 11, and at least three more — Deepal, Leapmotor, and Skyworth — are expected in 2025.

Singapore representatives of these brands anticipate further growth.

Anthony Teo, managing director of Sime Motors, which distributes BYD, expects more Chinese brands to break into Singapore’s top 10 sellers in 2025. In 2024, BYD was the only Chinese brand on the list.

Gem Ng, spokeswoman for Eurokars Group, which distributes MG, said increasing consumer education on EV benefits remains crucial as competition intensifies.

Lee Hoe Lone, managing director of Premium Automobiles, which distributes Xpeng, said the company aims to more than double its 2024 sales by introducing a second EV model and benefiting from an expected increase in certificate of entitlement (COE) quotas in 2025.

Experts believe Chinese brands will continue gaining ground, while Japanese and German manufacturers will need to adjust to remain competitive.

De Boer said European EVs tend to have more powerful motors, leading to higher road taxes and pricier COE premiums.

In contrast, Chinese brands and Tesla offer models under 110kW, qualifying for the lower-cost Category A COE.

Chinese carmakers have also improved safety standards. "Chinese cars have gone from scoring very badly in crash tests to being on par with European, Japanese, and Korean brands,” said de Boer.

However, he noted concerns about their long-term reliability in Singapore’s tropical climate.

"The Japanese are still the benchmark for quality and reliability, but they offer very little in terms of EVs,” he added.

Associate Professor Ang Swee Hoon from NUS Business School said Japanese and German brands may need to create lower-end sub-brands to compete, though this could be costly and dilute their premium image.

"The popularity of Chinese car brands has been driven by their affordability at a time of rising living costs,” she said.

"If economic conditions remain such that people are looking for affordability rather than aspirational, the Chinese brands stand to gain.”

Singapore Management University associate professor of marketing Hannah Chang said Chinese carmakers have leveraged partnerships with Toyota and Mercedes-Benz to boost their credibility.

"These partnerships not only raise their brand awareness globally but also help lend credibility and elevate consumer perception of these relatively new Chinese brands in the market,” she said.

Still, she noted that competition will intensify as other automakers expand their EV offerings.

Chang added that Japanese and German car brands have built strong brand equity over time, which could help them stay competitive if they innovate in EV technology and price their models strategically.

Singaporeans have increasingly opted for Chinese EVs due to their affordability and features.

Ler Hwee Tiong, 54, switched from a nearly decade-old Mercedes-Benz to an electric Omoda in December 2024 after testing various brands.

"The price, features, and warranty contributed to my decision,” said Ler, Asia director of a global automotive repair chain.

Eddie Chua, who works in sales, replaced his BMW SUV with a BYD EV in mid-2024 after noticing new EV chargers at his multi-storey carpark.

He said charging costs him around S$200 (RM660) per month, significantly less than the S$500 he used to spend on fuel. His insurance and road tax costs increased, but he found the overall savings worthwhile.

"The BYD’s performance is comparable to my previous car, and it’s smooth and easy to drive,” he said. However, he noted that its suspension feels soft on Malaysia’s bumpy roads.

Other drivers still prefer EVs from non-Chinese brands.

Michael Tan, 50, switched from a Volkswagen to a Tesla in 2022 and appreciates its high-tech features. He highlighted over-the-air updates, which improve the car’s functions remotely.

Switching to an EV has lowered his costs. His monthly fuel expenses dropped from S$500 to S$120, though his road tax increased to S$5,600 from less than S$1,200.