Japanese Media: The Singapore Car Market is Changing, Japanese Brands Struggle

According to a July 29 report by Japanese media Kyodo News NNA: Data from Singapore’s Land Transport Authority (LTA) shows that new vehicle registrations in the first half of 2026 (January–June) reached 27,144 units, a 13.3% increase compared to the same period last year. The share of electric vehicles rose from 40% last year to 60% this year.

Thanks to Singapore's government incentives for electric vehicles, sales of BYD and Tesla have surged, while Japanese and European brands are increasingly struggling.

Toyota plans to fully launch its electric vehicles in the third quarter, with attention focused on whether this move can reverse its declining momentum.

In the first half of 2026, including parallel imports, electric vehicles accounted for 16,948 units out of total new registrations—representing 62.4% of the total. This marks a rise of 21.4 percentage points compared to 41.0% during the same period last year, clearly indicating a stronger shift toward electrification in the market.

New registrations of hybrid vehicles (including plug-in hybrids) declined by 15.1% to 8,708 units, with their market share dropping from 42.8% last year to 32.1%.

By brand, BYD leads with a 25.2% market share. Of the top ten brands, six saw higher sales than the same period last year, while four—including Toyota and Germany’s Mercedes-Benz—recorded lower sales.

BYD ranked first with 6,828 units sold, a 46.3% increase year-on-year, accounting for 25.2% of all new registrations. This includes 6,466 pure electric vehicles and 362 plug-in hybrid vehicles (PHVs). BYD’s PHV sales began in 2025.

Forin, an automotive research firm responsible for the Singapore market, analyst Shigeaki Takashi told NNA: “The biggest factor driving EV adoption in Singapore is the government’s policy promoting electric vehicles.” He added, “It is reported that BYD has consistently focused on becoming the market leader in Singapore by 2025. Despite the relatively small size of the market, achieving sales leadership in this developed nation holds significant strategic importance for the brand.” Furthermore, Takashi noted: “The Singapore market primarily consists of two segments: everyday family cars and luxury vehicles purchased by affluent consumers.” He explained, “BYD has gained a leading position by effectively capturing demand driven by family-oriented buyers.”

Toyota came in second with 3,386 units, representing a 12.5% market share—a decrease of 2.2 percentage points compared to last year. Among these, gasoline-powered models accounted for 3,095 units, about 90%. There were 101 gasoline vehicles and 188 electric vehicles. A representative from Borneo Motors Singapore, Toyota’s authorized distributor in Singapore, told NNA that they plan to fully roll out electric vehicles in the third quarter.

Third place went to U.S.-based Tesla, whose sales surged 99.2% to 2,826 units. This represents a three-place jump from sixth position last year, significantly contributing to rising demand for electric vehicles.

Mercedes-Benz from Germany ranked fourth with 1,680 units sold, down 33.8%. BMW ranked fifth with sales dropping 40.3% to 1,591 units.

Among Japanese brands, Honda fell two spots from fifth place last year to seventh this year, with sales dropping 44.4% to 1,261 units. Of these, hybrid vehicles made up the largest share at 910 units, followed by 347 gasoline-powered vehicles and only 4 electric vehicles.

China’s Chery climbed to sixth place with 1,270 units, roughly 6.5 times higher than the same period last year. SAIC Motor subsidiary MG ranked eighth with 964 units, a threefold increase over last year. GAC Group ranked ninth with 870 units, up 86.7%. XPeng’s sales jumped 97.1% to 741 units, landing it tenth.

While BYD is actively targeting the Singapore market, other Chinese manufacturers remain cautious. Geely benefits from its diverse model lineup, while XPeng leverages its image as a brand offering “advanced technology,” giving it strong potential for future sales expansion.

Japanese automakers’ strength lies in their hybrid powertrain systems. Meanwhile, the Singaporean government supports EV adoption through programs such as the Vehicle Emissions Scheme (VES) for eco-friendly vehicles and the Early Eligibility for Electric Vehicle Incentive (EEAI) for new car purchases.

For Japanese brands, maintaining competitiveness in gasoline-powered vehicles remains crucial at present. Moreover, continued EV subsidies pose a growing challenge for Japanese automakers.

The competitive landscape in Singapore’s automotive market may undergo significant changes. Japanese brands enjoy high residual values for used vehicles; strengthening their used-car business and after-sales services could create value-added differentiation and enhance competitive advantage.

In the commercial vehicle segment, Hino continues to lead. New registrations of commercial vehicles (including buses) totaled 4,296 units in the first half of 2026, a 9.3% decline year-on-year. By brand, Hino maintained its leadership position, followed closely by Toyota, Isuzu, and Mitsubishi Motors—all Japanese brands occupying the top four spots. Fifth place went to BYD, whose sales increased 18.4% to 316 units. In the electric commercial vehicle category, BYD ranks first, followed by MAXUS (a subsidiary of SAIC Motor) in second, Toyota third, Beiqi Foton fourth, and Zhejiang Geely’s Farizon fifth.

Original article: toutiao.com/article/1872020245949440/

Disclaimer: The views expressed in this article are those of the author(s).