Future Of The Car Industry in Singapore

BMW Asia

Singapore January 2011

BMW: Future of the Car IndustryQ3 2010 and 2011

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“Green is no longer progressive. It is expected.”

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8 respondents answered Toyota

4 respondents answered Honda

2 respondents answered Mitsubishi

1 respondent answered Porsche

“Any Japanese car brands”

“What do you mean by eco-

friendly?”

Toyota/Honda ranked the highest

When I mentioned the word ‘eco-friendly car’, what’s the first car brand that comes to your mind?

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Moving Forward

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Singapore September 2010

Toyota Prius HybridThe most popular green car in the world.

High-fuel economy, plenty of versatility & a reasonable price.

Disadvantages: Low at performance, “it handles like an appliance”

Positioning: Fun to drive + environmentally responsible

Won a series of awards such as ‘Toughest Cars on the Road’, Best Overall Value, Highest owner loyalty & etc

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Innovative technologies

Plug-in Hybrid Vehicles Electric Vehicles Hydrogen Fuel

Cell VehiclesNatural Gas

Hybrid

What is Toyota doing?

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Future of Toyota

Source: Toyota Website

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Honda Hybrid Insight

“For people who had had enough squeezing between the road.”

Economical, fun driving family car.

Positioning: A ‘must-have’ fun-driving car & enable people to make an impact

Won a series of awards such as “Greenest Vehicle of 2010”, “Excellent Value 2010”.

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Honda Hybrid InsightScoring function:

The leaves indicate the level of fuel-efficiency.

Guidance function:

The background color indicates the fuel-efficiency of your driving.

Econ Mode:

Modifies certain engines for a more fuel-efficient driving.

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What is Honda doing?

Honda sees fuel cells as the ultimate source of clean energy

Open up the possibility of a home-use hydrogen supply system.

Solar Hydrogen Station

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Changes for the Better

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Mitsubishi i-MiEV in Singapore 2010

will supply 50 i-MiEV for Singapore's 3 year Electric Vehicle task force's “test- bedding project”

Entitled to almost 50% cheaper price if one is willing to take part in the study.

Entitled to 20% discount for venues at the HortPark in Alexandra Road if the couple have taken at least 8 environmentally-friendly measures for their wedding.

Source: straits times

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Now, let’s look at what are our competitors doing

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Progressive design & progressive technology

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AUDI A3 TDI

Entry-level Luxury Car.

Earns its environmental credentials & 2010 Green Car of the Year.

Positioning: Stylish, and fun to drive.

U.S.P: exceptional fuel economy & low emissions.

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AUDI Q7 TDI

Green Car Award 2009

TDI -> cleanest diesel in the world.

The ONLY car who meets Euro 6 emission standards.

Positioning: Efficiency, performance and comfort.

Disadvantages: Driving feeling is “heavy”, engine is not quite as smooth

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What else is Audi doing?a) TDI

- smooth, sporty & economical.- became a trend setter.

b) Audi Space Frame- uses light materials (aluminum) to cut fuel consumption.

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What else is Audi doing?

c) Digital Collateral - Scan barcodes on the car model allows

visitors to view the brochures from e-library/phone.

- Also provide complimentary SMS for visitors to populate the libraries

D) SynFuel - new type of synthetic fuel: liquid & based on

natural gas. - result of intensive research work together

with Shell - can be used in any Audi diesel vehicle

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AUDI in Singapore

• Official car for the Singapore International Energy Week (SIEW).

• Feature the Audi Q7 and the Audi e-tron.

•Audi e-tron : 4 electric motor power the vehicle, lightweight construction, 0-100 km/h in 4.8 sec

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On a scale of 1-10, how ‘green’ do you think Audi is? Why?

On average, Audi was rated a 4

“Their LED lights & they run

some campaigns

before.”

“Audi’s core is lifestyle &

performance. They won’t

compromise.”

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Road to the future.

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Mercedes Benz A Class E-Cell

Less heavy & bulky

Powered by lithium-ion batteries

MB’s second electric car. It will be launched in Europe first.

Positioning: High in usability and comfortable family car.

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What are they doing?

Mission: Emission-free driving. Join us on our journey.

BlueEFFICIENCY technologies

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What are they doing?

Blue Tec HYBRID

F-cell, E-cell, E-cell Plus

Natural Gas Technology

Blue Direct

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What else are they doing?

a) Use renewable raw materials for both interior & exterior.- The seat covers of new C-Class include 15% pure sheep’s wool.- Fibre which are obtained from banana plant partially replace the conventionally glass fibre structure in A-Class Cope.

a) SunDiesel. - Produced from plant residues- Almost completely CO2 neutral

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Mercedes in Singapore

They do not have any Hybrid car in Singapore yet.

C-ClassB-Class E-Class

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On a scale of 1-10, how ‘green’ do you think Mercedes Benz is? Why?

On average, Mercedes was rated a 5

“They had awesome ideas

with the development of

fuel cells.”

“I think their A-Class has C

engine or something like

that.”

“It’s a performance, classic car. I can’t relate it to green.”

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What is BMW doing?

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Singapore January 2011 The Common Perception

CO2 Performance

Majority of the respondents believe that less emission means less performance

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Singapore January 2011 BMW

CO2 Joy

BMW believe in consuming far less energy but increase the driving pleasure.

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How?

Blue Efficient Dynamic

Technologies

Lightweight Construction

Electric PowerSterling

Auto StartStop

Brake EnergyRegeneration

Petrol/diesel engine

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BMW Active Hybrid

A combination of electric motor & internal combustion engine, supported by batteries & coordinated through hybrid management.

Used on 5 Series.

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BMW Clean Energy- Hydrogen 7

World’s first production-ready hydrogen vehicle. Putting 100 of them to test as loan cars for leading figures from the worlds of culture, politics, business & media.

Built around a combustion engine that can switch on demand between petrol mode & hydrogen power.

Burns the hydrogen in combustion engine.

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Are you aware of BMW’s “efficient dynamic” concept?

“Huh? What?”“I think I’ve heard

about it somewhere”

Half of them have heard/seen but only 1 of them is truly aware of the concept.

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On a scale of 1-10, how ‘green’ do you think BMW is? Why?

On average BMW was rated 3

“This is how BMW supposed to be. They need to be fun & fast &

aggressive.”

“They can be ‘green’ but they chose not to.”

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“Singapore is the greenest city in Asia 2011”

-Channel News Asia

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How many people own/or know someone who owns an environmentally-friendly car?

Out of 15 respondents no one owns an eco-friendly car and 2 knows someone who owns one.

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Culture in Singapore

60% of them believe there are market for eco-friendly cars in Singapore.

“No, Singaporeans don’t really give a

shit.”

“Yes the dense population and

cosmopolitan mentality create a good market

for these cars.”

“It can be done if we are more educated and there are more

publicity done.”

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Buying Habits in Singapore

“Younger, upper middle class. They have resources &

more environmentally conscious.”

“People who are fooled by the

advertisement?”

Most of them believe that green cars are expensive and not practical.

“People who are rich & have all the time

in the world.”

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“Not enough stations available and the gas

is pricey”“Troublesome lah”

“Fuel-efficiency as most of the time is spent city-driving rather than on the

highways”

Most of them will not consider getting one.

2 said “yes” and 3 answered “maybe”.

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How would you rank the importance of these buying factors?

Fuel consumption

Design

Performance

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Buying a Hybrid in Singapore

• In Singapore, after reaching 10 years of age, cars must be scrapped or face hefty road taxes.

• When they scrap their cars they’re entitled to receive money under the “Preferential Additional Registration Fee” (PARF) plan.

• Singapore’s vehicle residual value is greatly influenced by the “scrap value” of the car.

• If you purchase a hybrid you’re entitled to 40% of tax rebate of the Open Market Value of the car.

• Lower the value, will result in a higher depreciation for Green vehicles in Singapore.

• Also, hybrid cars are taxed according to their power or engine output, which means they pay quite a high road tax as well. Hence a Hybrid car tends to be 20-30% more expensive compared to a normal diesel car.

Source: Land Transport Authority, Singapore

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Do Singaporeans care?

ALL of them are concern about oil price because of the inflation & not because of environmentally-conscious.

If one day the oil price has increased tremendously they will either take public transport or opt for a smaller, more

economical car.

Middle-class don’t really care as long as they get to wherever they have to go whereas the higher-class choose based on

what they like and the design, brand of the vehicle.

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The Future of the Car Industry

No one is doing anything special for the green market.

Eco-friendly cars will be a niche market in the next 5-10 years.

Cars in Singapore is not really seen as a necessity but more of a status symbol.

Need to be more well-equipped with service centers.

More contagious ideas to change the behavior.

IS GREEN CAR APPEALING/COOL?

Future Of The Car Industry in Singapore

Technology

land transport

building charging

internal combustion

level luxury

hydrogen supply

high road

eco friendly

combustion