Almost suddenly the car market in Singapore has just passed a milestone. And it is a significant one which will need some getting used to. There is a new Big Brother player in town. And it is from China.
The Straits Times: “China’s BYD was the best-selling car brand in Singapore in 2024, with 6191 units registered, beating out Japan’s Toyota and Germany’s Mercedes.” Toyota registered 5736 units, while Mercedes sold 5042.
What may be particularly significant is that the Chinese carmaker took a leap into the electric vehicle (EV) era and future while the traditional big boys in the car industry were perhaps too heavily invested in the conventional petroleum-engine vehicles to make a sudden sea change initially. BYD (Buy Your Dreams) had no such “dilemma” or qualms. It had a blank canvas. And with investors like Warren Buffett, it had almost a blank cheque.
Tesla also saw the opportunity and it may be BYD’s biggest EV competitor here. In Singapore, it is the fifth best seller overall in 2024 with 2384 units registered.
While everyone was watching Tesla, BYD was quietly doing the Great Leap Forward. According to Bloomberg, BYD “is on the cusp of joining the ranks of formerly obscure brands that conquered the world”. Worldwide it sold 1.56 million units in 2024. Toyota, which has been the world leader for years retained its top position with 5.16 million units.
Just to give some perspective to the BYD quiet march turned great leap, it was not that long ago that Chinese cars were basic point A to B vehicles.
I was in Beijing for an international motor show in 1995 (just one year after BYD was established). It was clear to me then that in commercial vehicle development terms, China was still in kindergarten. The Europeans were hyperactively muscling themselves into the Chinese car market AND industry. All were eyeing the monster China market for their own brands – BMW, Mercedes, Volvo.
China’s own Dongfeng and Changan were already around. But few outside had heard of them, though at least now we do know the Geely or Cheri. The motor show I visited was to showcase foreign makes, with the crowds mostly around the booths of the top European and Japanese brands.
Compare the situation with what the South Koreans did with their cars in the early quest to dent the Japanese and European domination.
When Hyundai’s Pony first appeared in Singapore, most people regarded it as an oddity. But very quickly within years, the later Hyundai cars became more accepted. They improved by leaps and bounds. Hyundai cars are popular here now.
The Singapore market is a sophisticated one. It is one of the most demanding, given the high disincentives to discourage ownership of cars. Perhaps going electric has been the right wave all this time.
Tan Bah Bah is a former senior leader writer with The Straits Times. He was also managing editor of a magazine publishing company