The pandemic saw domestic wholesale figures in the Transport sector fall by 16.5 per cent in 2020 with a similar decrease of 4.7 per cent in the foreign wholesale trade. As the transportation sector picks up in the coming months, companies in the Transport sector need to be digitally ready with an ample inventory to cater to the increase in demand.
Overview of the Industry
Wholesalers of transport equipment include trucks, bicycles, motor vehicles, motorcycles and autoparts. The top six motor vehicles brands in Singapore are Toyota, Honda, Nissan, Hyundai, Mercedes Benz and BMW. The largest player, Toyota, accounted for just over 25 per cent of car sales in Singapore between 2010 and 2014, with the other car brands having significantly lower shares of sales. Together, the top six brands accounted for around 60 per cent of sales.
Over 90 per cent of vehicles in Singapore are sold through authorized dealers, which typically have an exclusive license with the manufacturer to import and sell vehicles of a given brand. Authorized dealers in Singapore are Borneo Motors, Tan Chong Motors, Eurokars, Performance Motors, Cycle & Carriage, Kah Motors and Wearnes Automotive.
A number of original equipment manufacturers (OEMs) have established hubs for the distribution of their parts within Singapore, increasing the flow of parts and making it easier for businesses and individuals in Singapore to obtain parts. The vast majority of auto parts are imported either from Europe, Japan or local manufacturers in Thailand and Malaysia.
Stockists and retailers are both distribution firms of auto parts. Stockists are large distribution firms more likely to operate from a warehouse rather than a shop front. They sell to retailers as well as directly to workshops. Compared to retailers, they offer a lower level of customer service but greater discounts for volume orders. Retailers, on the other hand, are smaller firms more likely to sell auto parts from a shop front. They sell predominantly to workshops but also supply car owners directly. Compared to stockists, their prices are likely to be higher, but they generally offer more immediate delivery of the part.
According to the Department of Statistics, the Transport Equipment sector comprises the following:
- SSIC 46551 Marine equipment and accessories (including marine navigational equipment and radar)
- SSIC 46552 Aircraft equipment and supplies (including aeronautical equipment)
- SSIC 46559 Transport equipment except motor vehicles and motorcycles nec
- SSIC 46561 Motor vehicles except motorcycles and scooters
- SSIC 46562 Motorcycles and scooters
- SSIC 46563 Parts and accessories for vehicles
Digital Transformation
Major brands are driving the digital transformation of the wholesale of motor vehicle. Online portals now are equipped with complete 360-degree views of the vehicle models without the need to visit the car showroom. Sales transactions are now made online with approval financial loans done real time. As for auto parts, there is great opportunity for digital transformation as most of them are still operating manually.
If you have any questions or would like to discuss any of our digital solutions, we encourage you to contact us at sales@zooloo.asia. We would be glad to hear from you.
Explore more
- Learn more about our “Digital Backbones”
- Learn more from our eBook series on Digital Transformation for Wholesale Trade
