News analysis

Car makers adopting direct sales model in S'pore: Can lower prices be expected?

A direct sales model could lead to hotter competition for COEs, which can only mean higher premiums. PHOTO: LIANHE ZAOBAO
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SINGAPORE - Like in several other markets, car buyers in Singapore will soon be able to buy vehicles directly from the manufacturer.

Carmakers like Mercedes-Benz, Porsche and Hyundai are dipping their toes into the direct-to-consumer sales model - something that Tesla had adopted from day one. Clearly, the primary motivation is improving profit margins by removing or paring down the role of the middleman. And they are likely to achieve their objective.

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