The Automotive Parts Industry in Singapore

Although the focus of this study is the aftermarket automotive parts industry rather than automobiles, demand and supply conditions for automotive parts are influenced by certain features of Singapore’s automobile industry. Compared to other countries in the region, Singapore’s car population is relatively young, mainly due to the Certificate of Entitlement (COE) scheme. This reduces the demand for parts as newer cars are less likely to break down and car owners are less willing to undertake costly maintenance procedures towards the end of a vehicle’s COE life. Over 90 per cent of vehicles in Singapore are sold through authorised dealers, which typically have an exclusive licence with the manufacturer to import and sell vehicles of a given brand. These cars are sold with warranty packages ranging from 3 to 5 years

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