Diesel models in CAT A may be difficult to sell
12 Feb 2014|7,714 views
The Business Times reported that there may be many Certificate Of Entitlement (COE) Cat A diesel models available here but they are mainly to satisfy a distributor's need to be present in the small car segment, and not a response to real demand, according to some dealers.
"Diesel has a lot of potential, but for now, it is a tough sell. Most Singaporeans have a negative perception of the diesel-powered car as noisy and dirty. They think it sounds like a taxi," explained the sales manager of a dealership with a few diesel models.
Currently, there are about 20 Cat A turbodiesel passenger car models on the market from a range of brands, such as Citroen, Peugeot, Volvo, Renault and Volkswagen. List prices range from $110,000 to $170,000, including COE and Carbon Emissions-based Vehicle Scheme (CEVS) rebates.
When the Cat A COE for cars under 1,600cc was reclassified this month with an additional requirement of an engine output limit of 130bhp, about 40 petrol models were 'upgraded' to Cat B status. But because diesel-engined models typically have lower horsepower, these 1,600cc or less models stayed in the recategorised Cat A.
More importantly, the sales manager added that these clean diesel cars play an important price function - with their CEVS rebates of between $10,000 and $20,000, they help to bring down sticker prices to a more competitive level which some similar-sized petrol alternatives are unable to.
The turbodiesel models sold here are Euro 5-compliant and attract a reduced diesel surcharge of 40 cents per cc. Furthermore, diesel costs less than petrol at the pumps. However, Euro 5 models require ultra-low sulphur diesel, which is available at Singapore pumps but not in Malaysia, where the diesel quality is currently Euro 3 and contains 50 times more sulphur than Euro 5 diesel. Prolonged use of Euro 3 diesel can result in clogged injectors and particle filters.
But some dealers say that ultimately, it is not petrol or diesel but the COE premium that usually determines what kind of car buyers choose. They say that as long as COE premiums are high and the gap between Cat A and B is small, diesel will not be an attractive alternative for the masses.
The Business Times reported that there may be many Certificate Of Entitlement (COE) Cat A diesel models available here but they are mainly to satisfy a distributor's need to be present in the small car segment, and not a response to real demand, according to some dealers.
"Diesel has a lot of potential, but for now, it is a tough sell. Most Singaporeans have a negative perception of the diesel-powered car as noisy and dirty. They think it sounds like a taxi," explained the sales manager of a dealership with a few diesel models.
Currently, there are about 20 Cat A turbodiesel passenger car models on the market from a range of brands, such as Citroen, Peugeot, Volvo, Renault and Volkswagen. List prices range from $110,000 to $170,000, including COE and Carbon Emissions-based Vehicle Scheme (CEVS) rebates.
When the Cat A COE for cars under 1,600cc was reclassified this month with an additional requirement of an engine output limit of 130bhp, about 40 petrol models were 'upgraded' to Cat B status. But because diesel-engined models typically have lower horsepower, these 1,600cc or less models stayed in the recategorised Cat A.
More importantly, the sales manager added that these clean diesel cars play an important price function - with their CEVS rebates of between $10,000 and $20,000, they help to bring down sticker prices to a more competitive level which some similar-sized petrol alternatives are unable to.
The turbodiesel models sold here are Euro 5-compliant and attract a reduced diesel surcharge of 40 cents per cc. Furthermore, diesel costs less than petrol at the pumps. However, Euro 5 models require ultra-low sulphur diesel, which is available at Singapore pumps but not in Malaysia, where the diesel quality is currently Euro 3 and contains 50 times more sulphur than Euro 5 diesel. Prolonged use of Euro 3 diesel can result in clogged injectors and particle filters.
But some dealers say that ultimately, it is not petrol or diesel but the COE premium that usually determines what kind of car buyers choose. They say that as long as COE premiums are high and the gap between Cat A and B is small, diesel will not be an attractive alternative for the masses.
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