The dominance of legacy automakers is no longer a given<\/strong><\/h2>\nFor decades, Toyota\u2019s position at the top of Singapore\u2019s car market<\/a> looked almost untouchable.<\/p>\nThe Japanese automaker built its dominance on a reputation for reliability, fuel efficiency and strong resale value, making it the default choice for generations of motorists. Even as new competitors entered the market, Toyota largely held onto its crown.<\/p>\n
That changed when China\u2019s BYD entered the race. <\/p>\n
The electric vehicle (EV) maker overtook Toyota in 2025<\/a> to become Singapore\u2019s best-selling car brand, reflecting a broader shift in consumer demand towards EVs and the growing competitiveness of Chinese automakers.<\/p>\nThe intensifying competition is now being felt beyond the showroom floor. On Jul 30, Borneo Motors, the exclusive distributor of Toyota and Lexus vehicles in Singapore, retrenched an undisclosed number of employees<\/a> as part of a restructuring exercise.<\/p>\nIts parent company, global automotive distributor Inchcape, said it had reviewed<\/a> its Singapore operations to ensure the business remained \u201cwell-positioned to deliver for customers and brand partners,\u201d adding that the changes were intended to streamline operations and align the organisation with future priorities.<\/p>\nThe company did not say how many employees were affected or whether the restructuring was linked to increasing competition in the local market.<\/p>\n
Remaining staff still have questions<\/strong><\/h3>\n![\"\"](\"https:\/\/vulcanpost.com\/wp-content\/uploads\/2026\/08\/image-2-1024x725.png\"\/)
![\"\"](\"https:\/\/vulcanpost.com\/wp-content\/uploads\/2026\/08\/image-2-1024x725.png\")
<\/a>Image Credit: Borneo Motors<\/figcaption><\/figure>\nBorneo Motors is unionised under the Singapore Manual and Mercantile Workers\u2019 Union (SMMWU). <\/p>\n
According to SMMWU secretary-general Andy Lim, the company informed the union ahead of the restructuring, with affected employees believed to have received the news on Jul 30\u2014also their final day at work. <\/p>\n
The union also worked with Borneo Motors to ensure the severance package was fair and complied with the existing collective agreement.<\/p>\n
Under that agreement, the company must give the union one month\u2019s notice before carrying out layoffs. Employees who are retrenched are entitled to two months\u2019 notice, or payment in lieu, as well as a severance package equivalent to one month\u2019s basic salary for every year of service, capped at 25 years. <\/p>\n
Sales staff, meanwhile, receive S$4,000 for each completed year of service, also capped at 25 years.<\/p>\n
After notifying the affected employees on Jul 30, Borneo Motors reportedly held<\/a> a town hall later that afternoon to confirm that a restructuring had taken place. <\/p>\nHowever, employees who remained at the company told The Business Times<\/em><\/a> that management had yet to clarify how the changes would affect the rest of the workforce. They were still waiting to find out whether reporting lines would change or if they would be expected to take on additional responsibilities.<\/p>\nFor now, they believe their jobs are safe, largely because they were invited to attend the town hall. One employee also remarked that he expected to find out who had been retrenched \u201cbased on which company e-mail addresses bounce\u201d over the coming weeks.<\/p>\n
A spokesperson for the Taskforce for Responsible Retrenchment and Employment Facilitation said it is working with both Borneo Motors and SMMWU to support affected employees. The company has also committed to providing a retrenchment package that aligns with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.<\/p>\n![\"\"](\"https:\/\/vulcanpost.com\/wp-content\/uploads\/2026\/08\/inchcape-1024x536.jpg\"\/)
![\"\"](\"https:\/\/vulcanpost.com\/wp-content\/uploads\/2026\/08\/inchcape-1024x536.jpg\")
<\/a>Image Credit: Inchcape Singapore<\/figcaption><\/figure>\nThe retrenchment also follows a series of leadership changes<\/a> at Inchcape Singapore in recent months.<\/p>\nManaging director Ng Khee Siong left the company on Jul 21, after the earlier departures of its finance and marketing directors.<\/p>\n
While Inchcape has not linked the executive exits to the restructuring, the changes come as the automotive distributor navigates an increasingly competitive market. Inchcape Singapore is one of the country\u2019s largest multi-brand automotive franchise groups, alongside Cycle & Carriage and Wearnes Automotive.<\/p>\n
A market transformed<\/strong><\/h3>\nToyota is also facing what is arguably its biggest competitive challenge in Singapore in decades, with Chinese carmakers rapidly gaining market share both here and across the region.<\/p>\n
Reliability and resale value were long the deciding factors for local buyers, in a market long dominated by internal combustion engine vehicles.<\/p>\n
But the rise of EVs has rewritten the rules.<\/p>\n
Chinese manufacturers such as BYD entered the market with competitively priced electric models and increasingly sophisticated technology. As Singapore accelerates its push towards cleaner transport, more buyers have begun switching to EVs.<\/p>\n
The shift is already evident in the numbers. In the first half of 2026, one in four new cars registered in Singapore was a BYD,<\/a> cementing the Chinese automaker\u2019s position as the country\u2019s dominant EV brand.<\/p>\nThe company\u2019s ambitions also extend well beyond Singapore. In Jun, BYD chairman Wang Chuanfu said the automaker aims to overtake Toyota as the world\u2019s largest carmaker<\/a>, underscoring how Chinese brands are no longer content with leading the EV market alone but are increasingly challenging established global automotive giants.<\/p>\nCompetition is only intensifying, and the dominance of legacy automakers like Toyota is no longer a given.<\/p>\n
\n- Read other articles we\u2019ve written on Singapore\u2019s current affairs here<\/a>. <\/strong><\/li>\n<\/ul>\n
Featured Image Credit: Toyota Singapore via Facebook<\/em><\/p>\n<\/p><\/div>\n
The Japanese automaker built its dominance on a reputation for reliability, fuel efficiency and strong resale value, making it the default choice for generations of motorists. Even as new competitors entered the market, Toyota largely held onto its crown.<\/p>\n
That changed when China\u2019s BYD entered the race. <\/p>\n
The electric vehicle (EV) maker overtook Toyota in 2025<\/a> to become Singapore\u2019s best-selling car brand, reflecting a broader shift in consumer demand towards EVs and the growing competitiveness of Chinese automakers.<\/p>\n The intensifying competition is now being felt beyond the showroom floor. On Jul 30, Borneo Motors, the exclusive distributor of Toyota and Lexus vehicles in Singapore, retrenched an undisclosed number of employees<\/a> as part of a restructuring exercise.<\/p>\n Its parent company, global automotive distributor Inchcape, said it had reviewed<\/a> its Singapore operations to ensure the business remained \u201cwell-positioned to deliver for customers and brand partners,\u201d adding that the changes were intended to streamline operations and align the organisation with future priorities.<\/p>\n The company did not say how many employees were affected or whether the restructuring was linked to increasing competition in the local market.<\/p>\n Borneo Motors is unionised under the Singapore Manual and Mercantile Workers\u2019 Union (SMMWU). <\/p>\n According to SMMWU secretary-general Andy Lim, the company informed the union ahead of the restructuring, with affected employees believed to have received the news on Jul 30\u2014also their final day at work. <\/p>\n The union also worked with Borneo Motors to ensure the severance package was fair and complied with the existing collective agreement.<\/p>\n Under that agreement, the company must give the union one month\u2019s notice before carrying out layoffs. Employees who are retrenched are entitled to two months\u2019 notice, or payment in lieu, as well as a severance package equivalent to one month\u2019s basic salary for every year of service, capped at 25 years. <\/p>\n Sales staff, meanwhile, receive S$4,000 for each completed year of service, also capped at 25 years.<\/p>\n After notifying the affected employees on Jul 30, Borneo Motors reportedly held<\/a> a town hall later that afternoon to confirm that a restructuring had taken place. <\/p>\n However, employees who remained at the company told The Business Times<\/em><\/a> that management had yet to clarify how the changes would affect the rest of the workforce. They were still waiting to find out whether reporting lines would change or if they would be expected to take on additional responsibilities.<\/p>\n For now, they believe their jobs are safe, largely because they were invited to attend the town hall. One employee also remarked that he expected to find out who had been retrenched \u201cbased on which company e-mail addresses bounce\u201d over the coming weeks.<\/p>\n A spokesperson for the Taskforce for Responsible Retrenchment and Employment Facilitation said it is working with both Borneo Motors and SMMWU to support affected employees. The company has also committed to providing a retrenchment package that aligns with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.<\/p>\n The retrenchment also follows a series of leadership changes<\/a> at Inchcape Singapore in recent months.<\/p>\n Managing director Ng Khee Siong left the company on Jul 21, after the earlier departures of its finance and marketing directors.<\/p>\n While Inchcape has not linked the executive exits to the restructuring, the changes come as the automotive distributor navigates an increasingly competitive market. Inchcape Singapore is one of the country\u2019s largest multi-brand automotive franchise groups, alongside Cycle & Carriage and Wearnes Automotive.<\/p>\n Toyota is also facing what is arguably its biggest competitive challenge in Singapore in decades, with Chinese carmakers rapidly gaining market share both here and across the region.<\/p>\n Reliability and resale value were long the deciding factors for local buyers, in a market long dominated by internal combustion engine vehicles.<\/p>\n But the rise of EVs has rewritten the rules.<\/p>\n Chinese manufacturers such as BYD entered the market with competitively priced electric models and increasingly sophisticated technology. As Singapore accelerates its push towards cleaner transport, more buyers have begun switching to EVs.<\/p>\n The shift is already evident in the numbers. In the first half of 2026, one in four new cars registered in Singapore was a BYD,<\/a> cementing the Chinese automaker\u2019s position as the country\u2019s dominant EV brand.<\/p>\n The company\u2019s ambitions also extend well beyond Singapore. In Jun, BYD chairman Wang Chuanfu said the automaker aims to overtake Toyota as the world\u2019s largest carmaker<\/a>, underscoring how Chinese brands are no longer content with leading the EV market alone but are increasingly challenging established global automotive giants.<\/p>\n Competition is only intensifying, and the dominance of legacy automakers like Toyota is no longer a given.<\/p>\n Featured Image Credit: Toyota Singapore via Facebook<\/em><\/p>\n<\/p><\/div>\nRemaining staff still have questions<\/strong><\/h3>\n
<\/a><\/a>A market transformed<\/strong><\/h3>\n
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