Motoring @ AsiaOne

Big shift in engine sizes

Size seems to matter for Singaporean car buyers, as more buy cars with engines over 1,600c now.
Christopher Tan, Senior Correspondent

Sat, Jan 19, 2008
The Straits Times

BIG cars, they are beautiful. Latest data obtained from the Land Transport Authority shows the big-car population here has been growing by leaps and bounds in the last decade or so.

From 1997 to last year, the population of cars with engines larger than 1,600cc - loosely known as 'big cars' here - nearly doubled to 209,747. Over the same period, cars with engines no bigger than 1,600cc ('small cars') grew by only 12.6 per cent to 304,938.

Today, the big models make up 41 per cent of the car population - up from 28 per cent in 1997.

Motor Traders Association president Michael Wong attributes the trend to growing affluence as well as how certificates of entitlement (COEs) are distributed.

'When extra COEs were released (after electronic road-pricing was introduced in 1998), more certificates went to Category B, which is for cars above 1,600cc,' he says.

BIGGER IS BETTER: Honda sells more 1.8-litre Civics (above) than the 1.6-litre versions in Singapore.
SHOWING THE WAY AHEAD: If sales of the 2.4-litre Toyota Camry (top picture) are any indication, Singaporeans love their cars bigger and more powerful.

Next, Open Category COEs. Every year, the various other categories each contributes 25 per cent of its allotment to the Open Category. Although COEs in this category can be used for buying any vehicle type, most folks who bid for Open COEs use them for big cars.

'The price differential between big and small cars has narrowed too,' Mr Wong adds.

For instance, the Honda Civic 1.6 starts from around $73,000, while the 1.8-litre version, which is better equipped, is only $5,000 more. Not too long ago, that price gap separated an automatic car from a manual transmission one.

Which explains why 70 per cent of Honda Civics sold are 1.8-litre. The 1.6-litre accounts for 22 per cent, while the rest are 2-litre Civics.

Mr Vincent Ng, product manager at Honda agent Kah Motor, says: 'The 1.8-litre has a lot more equipment, like high-intensity discharge headlamps, factory-fitted audio, factory leather upholstery, paddle shift transmission. And the 1.6-litre offers only about 5 per cent better fuel economy.'

He adds that going for a bigger car is 'a natural progression'.

That is certainly true for businessman Leslie Chia. His first ride was a 1-litre Fiat Uno. He then moved to a Subaru Impreza 1.6, Ford Mondeo 2.0 and Volvo V40 2.0 turbo.

His current car is a 2.5-litre Volvo V70.

Mr Chia, 43, says he does not consciously upgrade to bigger models. 'I look at overall functionality of the car. It just so happens that each new car got bigger,' he explains.

Consultant Ong Eng Tong, 64, says he picked a 2.4-litre Toyota Camry over a less expensive 2-litre version because 'as you grow older, you can't drive as aggressively as before'.

'So you need a car that will allow you to overtake before you run into the chap coming in the opposite direction,' he says.

The shift towards bigger engines has allowed car agents to bring in a wider range of models.

In the case of BMW, there was a time when practically all the 3-series it sold here were the puny 316i - a model almost unheard of elsewhere. The story is different today.

The entry-level model today is the 320i. While that accounts for the bulk of sales, Beemer fans are also snapping up 325i, 330i and even 335i cars.

In recent years, the European manufacturers have been upsizing their petrol engines to meet stricter emission standards (you see, smaller engines are not necessarily greener). Hence the current crop of 2- and 2.5-litre powerplants may be phased out.

That trend gels with the shifting preference here. Motor traders in Singapore reckon big cars will outnumber small cars in five to 10 years.

 
 
 
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