Luxury car sales in Singapore drop 75% after scandal

Luxury car sales in Singapore have fallen sharply, with some brands experiencing a drop of up to 75% last year. This decline follows a significant money-laundering scandal that involved the seizure of many high-end vehicles. The government has responded by raising taxes on luxury cars and increasing checks on buyers. Dealers report that wealthy customers are now avoiding extravagant purchases. Anson Lee, a dealership director, noted that many Chinese buyers prefer to keep a low profile after the scandal. Consequently, the luxury car market is stagnating, with buyers showing more interest in electric vehicles. Sales of electric cars, particularly those from Chinese brand BYD, have surged. BYD sold 6,191 cars in 2024, a fourfold increase from the previous year. In contrast, traditional luxury brands like Rolls-Royce and Ferrari saw drastic declines in their sales numbers. Rolls-Royce sales dropped from 95 to 23, while Ferrari sales fell from 97 to 29. Jaguar and Bentley also reported significant decreases. Bentley explained its decline was due to the phasing out of older models, expecting sales to recover with new releases. The government’s crackdown came after a money-laundering case linked to individuals from China's Fujian province. In raids, police seized 77 luxury cars valued at millions of dollars. Some of these cars have been sold back to the market. To improve transparency, the government mandated luxury dealers to verify the financing of their high-end products and report any suspicious buyers. Additionally, a new tax structure has been implemented, increasing taxes on expensive cars to 320%. The cost of certificates needed to purchase a vehicle has also risen, currently exceeding S$117,000 for the most powerful models. This is down from a peak of S$150,000 in late 2023, indicating a shift in consumer demand.