Aggressive marketing tactics by parallel importers (PI) helped to boost total Honda sales last year and actually made it Singapore's second most popular brand instead of Nissan.

Among members of the Motor Traders Association of Singapore (MTA), Honda had been ranked No 3 in 2006, behind No 1 Toyota and No 2 Nissan. But in terms of actual overall sales in the Republic, Honda is really the first runner-up.

A total of 116,849 new passenger cars were registered last year, according to the Land Transport Authority (LTA). These LTA figures include sales by both MTA members - the authorised distributors of the brands represented - and non-MTA members, as well as parallel importers. Singapore's top brand overall was Toyota with a massive 35,288 units registered for a 30.2 per cent market share.

The runner-up was Honda with 14,954 units for a 12.8 per cent market share. Less than 200 units behind in third place was Nissan with 14,761 cars and a 12.6 per cent market share.

Last year was a boom year for the PI trade, with a total of 16,137 passenger cars sold - a big jump from the preceding year's 6,282 units. As a group, the PIs accounted for 13.8 per cent of all new cars registered last year.

Among MTA members alone, though, 98,729 cars were registered, or 84.5 per cent of all the new cars sold. Nissan was in the MTA's No 2 position with 14,756 units, while Honda was No 3 with 10,823 units.

Observers say keen pricing, high trade-in, attractive overtrades and models not found in the official agent's showroom were behind the PIs' success with the top two brands.

'Honda parallel imports are attractive because the models being offered are not what Honda Motor Company allows for sale in Singapore,' explained Vincent Ng, product manager for Kah Motor, the authorised distributor for Honda.

He said the Honda factory does not offer models like the Airwave and the JDM (Japan domestic model) Accord found at PI showrooms because these cars are not developed for the Asean region.

'The JDM Accord is different from Kah Motor's Accord and was developed for the local Japanese market, while the Airwave is not officially exported outside Japan,' said Mr Ng.

But when an export version of a Honda is available here, there are different reasons for its success. PIs sold 1,128 Fits last year, versus Kah's 1,746 units of the Jazz. 'The Fit was successful because of its low advertised prices,' said Mr Ng. 'The PIs advertise aggressively and offer the car with cheap but unapproved after-market accessories like a $600 bodykit and alloy wheels that don't meet Honda specifications.'

He said the cheaper cars may attract potential buyers but the low advertised prices are usually subject to many unwritten terms and conditions, for example, a full loan amount to be taken over the maximum 10 years at interest higher than prevailing rates.