Luxury car sales in Singapore have plummeted as buyers opt for discretion following the government’s tax hike and enhanced due diligence measures in the wake of a massive $2 billion money-laundering scandal.
According to industry data, the number of new Bentley, Ferrari, Jaguar, and Rolls-Royce vehicles sold in the city-state dropped by as much as 75% in 2024 compared to the previous year. The decline is attributed to growing caution among affluent buyers, particularly Chinese nationals, who previously drove the market for high-end vehicles. The shift comes after authorities seized numerous luxury cars linked to the money-laundering case, where individuals from China’s Fujian province were implicated.
“Most of the luxury cars bought in recent years were by Chinese customers,” said Anson Lee, managing director of Euro Performance Asia, a high-end car dealership. “Following the scandal, you are now seeing the market stagnate. I still have Chinese customers, but they want to keep a low profile, so the whole market has slowed down.”
As demand for luxury vehicles wanes, sales of electric vehicles (EVs) have surged. Chinese automaker BYD, which only entered the Singaporean market in 2020, became the city-state’s second top-selling car brand last year. BYD sales soared to 6,191 units in 2024, marking a fourfold increase, while Tesla sales more than doubled to 2,384.
Meanwhile, luxury brands experienced a sharp decline. New Rolls-Royce sales dropped from 95 to 23, Ferrari sales plummeted from 97 to 29, Jaguar’s numbers nearly halved to 27, and Bentley saw sales decline from 58 to 25. Bentley attributed the slowdown to the transition between old and new models, expecting sales to pick up as new versions become available. However, Jaguar, Ferrari, and Rolls-Royce declined to comment.
Singapore has seen an influx of wealth in recent years, positioning itself as a premier asset and wealth management hub. However, the city-state’s ambitions have also exposed it to risks. The money-laundering case, which surfaced two years ago, involved the seizure of 77 luxury vehicles, including a red Rolls-Royce Dawn, a black Rolls-Royce Cullinan, a red Porsche 911 Targa, and a white Toyota Alphard, with a combined value of S$4.7 million (US$3.5 million).
The Financial Times reported that in response to the scandal, Singapore’s government has ordered luxury car dealers, property agents, and gemstone sellers to conduct stricter checks on financing sources for high-value purchases. “We have [always had] to do our due diligence on customers, but this has become more sensitive because of the money-laundering case,” Lee noted.
Adding to the decline in luxury car sales, many of the confiscated vehicles have been reintroduced to the market. Singapore’s Justice Minister, K. Shanmugam, recently confirmed that the government has sold 33 of the seized cars.
The downturn in luxury car sales has also been exacerbated by a tax increase introduced in 2023 aimed at cooling the post-pandemic market. Taxes on cars priced above S$80,000 were raised to 320% from 220%, alongside measures limiting resale value.
Furthermore, buyers face rising costs for certificates of entitlement (COEs), which are required before purchasing a vehicle. The COE price for high-performance cars currently stands at just under S$117,000, up from S$96,000 a year ago. However, the figure is significantly lower than the peak of S$150,000 in November 2023, reflecting declining demand for high-end vehicles.
