Let me use data to explain why COE is approaching all-time highs!
One word.
Tesla.
Tesla is the new king (not kid) on the block.
We know Tesla is popular in US and EU, but what about Singapore?
They recently made a debut in 2021, so how was it?
Well, nothing short of spectacular.
You practically see a Tesla Model 3 everywhere in tiny Singapore.
Tesla sold 30 cars in the 1st half of 2021 and 894 cars in the 2nd half of 2021!
30 in the 1st half because they only started delivering in July.
Then, sales went to the moon.
So is there data is back it up?
Anyone who knows me knows that I am gearhead.
I liked cars before I liked bubble tea, and that’s saying a lot.
So I decided to relive one of my favourite hobby I used to do when I was younger.
Look at the data of newly registered cars by make in Singapore.
It details the breakdown of the number of new cars sold by car makers in the year by 1st half and 2nd half.
There are a few things that I found interesting and perhaps you will too.
I took the most popular car makers and compared them to Tesla, the new kid on the block.
The format is as follows: Car maker / cars sold 1st half / cars sold 2nd half / total
Tesla: 30 / 894 / 924
BMW: 3100 / 2155 / 5255
Mercedes: 4191 / 2230 / 6421
Ferrari: 24 / 41 / 65
Lamborghini : 23 / 24 / 47
Honda: 2613 / 2202 / 4815
Toyota: 5171 / 4462 / 9633
Volkswagen: 840 / 389 / 1229
In case you are wondering, the total new cars registered in 2021 are as follows:
Total 25777 / 19665 / 45442
What jumps out at you?
Except for Tesla, every other car makers sold less car in the 2nd half than they did in the 1st.
In simple terms, every car maker did worse as the year went on and sales gradually withered.
Seems logical, its approaching the year’s end, money is tight, and typically bonuses are given at the very end of the year leading to more purchases at the start of the new year.
But this time, I think Tesla is the cause.
Mercedes, BMW, Toyota, Honda, Volkswagen, all well-known car makers, are losing sales directly to Tesla.
While everyone else were selling less, Tesla jumped from 30 to 894 units!
Why not?
Their cars are affordable (be understanding, affordable is a relative term in Singapore’s car scene), snazzy, cool, lots of futuristic gadgets, their CEO is awesome, the car is silent, easy to drive, large touch screens and green!
And that my friends, is a probable reason why COE is nearing its all-time high.
So many people are craving for a Tesla, they are willing to pay the exorbitant COE to get one.
When demand outweighs supply, prices goes up up up.
That’s SGD $93,590 for a piece of paper (Cat B) to own a Tesla in Singapore.
The last time COE was that high was in Jan 2013 at $97,889 (Cat E).
Tesla may be the new kid on the block, but they are fast becoming the new king.
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