Two big brands quit S'pore's motor traders' body

By Christopher Tan, Senior Correspondent

DAIMLER South-east Asia and Performance Motors have quit the Motor Traders Association (MTA), and with it will go all access to data on how well their vehicles are selling here.

The companies, which sell Mercedes-Benz and BMW vehicles respectively, are the first big players to withdraw from the four-decade-old trade association.

Other brands which have dropped out in recent years include Malaysia's Proton, Sweden's Saab, Britain's BMW-owned Rolls-Royce, and French makes Peugeot, Citroen and Renault.

The six brands, however, are small players, together accounting for only about 1.5 per cent of total new car sales here.

Mercedes and BMW account for about 8 per cent of the market.

Industry observers reckon the pair - which have long engaged in a fierce sales race - quit because they did not want to reveal their sales figures.

MTA president Tan Kheng Hwee said: 'A requirement of membership is that a member must report its detailed sales figures on time and accurately...This may affect a brand's decision whether or not to become an MTA member.'

The two German brands indicated that they saw little value in membership.

A spokesman for BMW agent Performance Motors said: 'We made this decision to withdraw from the MTA after due consideration as its membership did not offer meaningful benefits in alignment to our business.'

Daimler South-east Asia's spokesman said: 'Daimler has been a relatively inactive member of the MTA. Besides the exchanging of figures, generally we do not participate in the activities organised by MTA, like the biennial motor show.

'We are able to obtain relevant information and data through meaningful exchange with industry players via our headquarters in Germany. Thus, we decided not to continue with the membership.'

Elsewhere, German luxury car marque Audi said it is adopting a 'wait-and-see' stance.

'Honestly, there is no point in submitting our figures if these two brands are out,' a spokesman for Audi Singapore quipped.

MTA's Ms Tan said there is more to membership than just exchanging sales data.

'Like all trade associations, the MTA is about the sharing of information...that is mutually beneficial to all members.

'It is about participation and the opportunity to communicate and give feedback as a group to government agencies and other organisations.'

The price of membership is nominal, at $1,500 a year.

Ms Tan noted that many distributors of European brands are not members.

'Some brands may feel it is beneficial to keep their sales figures to themselves. However, the MTA believes more can be gained in being transparent.'

Commenting on the pullout, Mr Lee Nian Tjoe, editor of motoring monthly Torque, said it is another sign that the MTA is losing appeal among members.

The first sign, he said, was the dwindling participation at the Singapore Motorshow. Last year's show had only three participants: Honda, Subaru and Nissan.

'Maybe the MTA should examine why it is losing ground,' Mr Lee said.

The Straits Times understands that the association will be meeting Performance Motors and Daimler soon to ask if they would reconsider their move.

Despite the pullouts, overall membership remains healthy because of newcomers such as the Chinese brands. Excluding BMW and Mercedes, there are 29 brands represented on the MTA today, versus 27 brands 10 years ago.

MTA sales account for 79 per cent of total new cars sales here - down from 90 per cent a decade ago.

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