They attract buyers who want to identify with a different
bodystyle
By Samuel Ee - 06 February 2006
The Business Times
THE seven-seat SUV may continue to muscle in on the upmarket MPV's
territory in 2006 if last year's numbers are any indication.
In 2005, multi-purpose vehicles and sport-utility vehicles were the
main beneficiaries of an exodus of buyers from the mid-sized saloon
segment. But within the SUV market itself, one interesting
development was the strong sales of seven-seater SUV models, of
which there are only three here.
The Volvo XC90 is the first model in Singapore to combine the
sporty looks of an SUV with the cabin versatility of an MPV. It
debuted in November 2002 with all-wheel-drive and hulking good
looks. Most importantly, it has a third row of seats which
average-sized adults could sit comfortably in, plus enough cargo
space for a suitcase when this last row of seats is in use.
But the two turbocharged models - a 2.5-litre and a 2.9-litre - are
premium cars, with launch prices starting from $199,000 with COE.
Nevertheless, they have seen steady - if not increasing - sales,
thanks partly to low supply initially, and partly to lower pricing
and additional variants.
Last year, 305 units were sold, marginally up from 302 the previous
year. There are now six variants, including a five-seater
entry-level version priced at $174,000.
'When the XC90 was conceived, the challenge was to have safety and
design gel together into an attractive and versatile package,' says
Pang Cheong Yan, general manager of Volvo distributor SM Motors.
'And this it did very well.'
The XC90 has Volvo's well-known safety cage and side impact
protection system, as well as RSC or roll stability control. Here,
a gyro-sensor checks the car's angle of inclination and applies the
brakes to stabilise the vehicle when necessary.
Also on standby is ROPS, or the rollover protection system, with
its reinforced roof pillars and inflatable side curtains to protect
all three rows of passengers.
Mr Pang adds that many of the XC90's customers include those who
drive luxury limousines such as the BMW 7 Series and Mercedes-Benz
S-Class.
'It has opened up a whole new segment by attracting people who
never used to consider a Volvo,' he says. 'Among some of our
customers with young families, it is even considered a hip car.' Mr
Pang believes that in general, the XC90 has ridden on the SUV wave,
which is seeing an increasingly sophisticated set of buyers who
want to identify with a bodystyle other than a sedan.
Also launched in the same year as the Volvo was the Ssangyong
Rexton. But despite its pretty styling and attractive price, its
third row of seats is less spacious than the XC90's. The Korean
model starts from $96,888 with COE.
But last April, the Toyota juggernaut rolled in with what has now
become the runaway seven-seater SUV. The Toyota Fortuner is huge,
with an equally big 2.7-litre inline four-cylinder engine driving
all four wheels. Unlike the Volvo, which is of monocoque
construction, the Toyota has a body-on-frame design like a
pickup.
This Thai-made model is also taller at 1.85 metres high, which
means some carparks are inaccessible. But on the upside, the third
row of seats accommodates two adults comfortably. Although not
quite in the XC90's price league, the Fortuner isn't exactly a
budget model either.
With the Toyota badge and good pricing - its sticker price is
currently $94,888 - it was no surprise that it notched up 403 units
last year. So authorised Borneo Motors Singapore's stated target of
600 units a year appears easily achievable.
'Most of our Fortuner customers chose it for its seven-seater
feature,' said a spokesman. 'But they did not want an MPV,
otherwise they would have bought a Picnic or Previa. They wanted
the body and shape of an SUV because it's sportier.'
He said most buy it as a second car. Its price has also played a
part, even if Borneo considers the Fortuner to be a 'premium'
SUV.
'It's not too expensive. It has always been below $100,000,' the
spokesman said.
The crossover trend will be given a further fillip this year with
the introduction of the Mercedes-Benz R-Class in mid-2006.
Like the above models, the R-Class combines the attributes of an
SUV with an MPV but with more car-like styling.
This Grand Sports Tourer, as it is called, has three pairs of
seats, four-wheel-drive, and a seven-speed gearbox. Engines offered
are a 3.5-litre V6 or a five-litre V8. But in terms of pricing, it
will be at a premium, and is likely to start from about $300,000.
And as with other luxury SUVs, its affluent clientele will also be
less sensitive to higher fuel prices and the car's larger engine
capacity.
'We expect continued growth in the SUV segment, driven by the fact
that a car is no longer just a mode of transport these days,' said
Volvo's Mr Pang. 'Increasingly, savvy customers are looking for
vehicles that embody the lifestyle that they identify with.'