The interest in electric vehicles (EVs) is noticeably growing, largely driven by consumer concerns over climate change. In Singapore, this shift is further reinforced by new regulatory mandates from the Land Transport Authority, which requires that by 2030, all new cars must be cleaner-energy models like EVs, with a phase-out of new diesel vehicle registrations starting in 2025.
As these changes unfold, commercial business owners are debating whether to stick with traditional diesel and petrol vans or to make the transition to electric.
Current Landscape of Van Fuels
Due to their widespread availability and familiarity with their engines, diesel vans have long been the mainstay in Singapore’s commercial van market. Yet, diesel is considered the least environmentally friendly option. Petrol vans, though less prevalent, offer a slightly more eco-friendly alternative for those seeking different fuel options.
This dynamic is set to shift with the implementation of the Commercial Vehicle Emissions Scheme (CVES), which categorises vehicles based on their emissions levels, including pollutants like CO2, HC, CO, NOx, and PM. Commercial vans that fall into cleaner categories may receive incentives, while those with higher emissions could incur surcharges.
This policy is nudging the market towards electric commercial vehicles, which are increasingly seen as a more incentivised and sustainable choice.
Comparison of Efficiency Metrics: Electric vs Petrol vs Diesel Vans
Buy why is an electric vehicle more efficient than a petrol or diesel vehicle in terms of operational costs, maintenance, and environmental impact?
1. Fuel Costs and Efficiency
Let’s take a quick look at the cost differences between various vehicle types and their fuel consumption:
| Vehicle Type | Fuel/Charging Cost (Average) |
|---|---|
| Petrol | S$2.89/Litre |
| Diesel | S$2.48/Litre |
| Electric | S$0.486/kWh (AC) and S$0.552/kWh for DC |
Note: Prices are subject to fluctuation without prior notice and may vary based on specific providers.
As outlined above, electric commercial vehicles present substantial cost savings over time due to lower charging costs than traditional fuel expenses, enhancing their economic appeal for businesses.
Thus, in the ongoing debate of diesel vs petrol vs electric vehicles, EVs have emerged as the most fuel-efficient car in Singapore.
2. Maintenance Costs
When it comes to keeping vehicles running, electric and traditional internal combustion engine (ICE) vans have some notable differences. So, why is an EV deemed to be better than diesel and petrol in terms of maintenance requirements?
Essentially, electric vans have a much simpler setup under the hood—no oil to change, fewer belts to snap, and no exhaust systems to fix.
This simplicity means there’s less that can go wrong, which can lead to significant savings on maintenance. On the other hand, ICE vans often require more frequent and complex maintenance, including regular oil changes, exhaust system repairs, and belt replacements.
For business owners, the lower maintenance needs of EVs mean less time and money spent on upkeep compared to traditional ICE vehicles.
3. Environmental Impact
Concern for climate change is growing globally, and though Singapore isn’t a major contributor to global emissions, efforts to reduce its carbon footprint are intensifying.
Traditional internal combustion engine vans are becoming less favourable due to their significant environmental impact. These vehicles release large amounts of CO2 and emit pollutants like nitrogen oxides and particulate matter, which harm air quality and cause respiratory problems.
In contrast, electric vans emit zero tailpipe emissions, helping to reduce both greenhouse gas accumulation and air pollution. The shift to electric commercial vehicles aligns perfectly with Singapore’s evolving environmental regulations, helping businesses not only meet but advance their sustainability goals.
Performance and Operational Efficiency
Several critical factors also influence operational efficiency.
1. Range and Charging Infrastructure
While commercial electric vans offer numerous benefits, their range can be a limiting factor compared to traditional petrol and diesel vehicles. This limitation, however, is gradually being mitigated by ongoing advancements in battery technology and the expansion of charging networks.
As of August 2024, Singapore has around 13,800 registered electric vehicle charging stations, with plans to increase this number to 60,000 by 2030. This rapid expansion will soon make EV charging as accessible as traditional refuelling, enabling commercial electric vehicles to overcome range limitations by providing convenient and frequent recharging options, allowing them to stay on the road longer.
2. Payload and Cargo Capacity
When considering payload capacity, electric vans typically have lower capacities than diesel and petrol vans due to the weight of their batteries. However, battery efficiency and improvements in vehicle design are helping to increase these capacities. At Hong Seh, for instance, our electric commercial vans offer payload capacities of up to 1,100 kg, making them a viable option for various commercial applications.
Economic Considerations
And how about the economic ramifications of choosing between electric, diesel, or petrol vans?
1. Initial Costs and Residual Value
Electric commercial vehicles generally have higher upfront costs compared to petrol and diesel vans, primarily due to the cost of battery technology and other advanced components. However, in Singapore, government subsidies and incentives are available to help offset these initial costs, making EVs financially accessible.
Regarding residual value, EVs are holding their value well, thanks to growing demand for sustainable options and increased awareness of their long-term benefits. As the EV market continues to expand and technology improves, the resale value of electric vans is expected to become increasingly promising.
2. Total Cost of Ownership (TCO)
The total cost of ownership for electric, petrol, and diesel vans includes considerations of fuel costs, maintenance expenses, and depreciation over the vehicle’s lifetime.
Electric vehicles tend to have higher initial purchase prices but benefit from lower running and maintenance costs and slower depreciation due to the growing demand for sustainable options. Beyond that, the lifespan of an electric van, while it can vary based on usage, driving habits, and maintenance, on average, can last 10 to 20 years with proper care before requiring significant repairs or replacements.
Petrol and diesel vans, on the other hand, often have lower upfront costs but incur higher fuel expenses and maintenance needs over time.
Future Trends and Outlook
As EV technologies advance, particularly with the development of faster charging capabilities, more durable batteries, higher load capacities, and the expanding EV charging infrastructure, the efficiency and appeal of electric commercial vans are expected to surge. These improvements could significantly shorten charging times, extend range, improve overall vehicle performance, and increase convenience, addressing key concerns that have hindered broader EV adoption.
Additionally, the push for cleaner transportation, such as Singapore’s gradual transition of its public bus fleet to electric power, signals a positive trend that is expected to influence the commercial sector as well.
Supportive regulatory frameworks and incentives are also likely to further propel the uptake of electric vehicles.
Should I Buy an Electric, Petrol or Diesel Van?
Choosing between an electric, petrol or diesel van depends on your commercial business’s needs. If environmental impact, incentives, and lower running costs are priorities, consider EVs. For longer range and availability, diesel may be suitable. If you prioritise a lower upfront cost and occasional use with shorter distances, petrol vans may be a viable option.
Transform Your Fleet, Transform Your Impact
As the global push towards sustainability accelerates, adopting electric commercial vehicles in Singapore for your business’s fleet is becoming an increasingly practical choice. If you are considering making the switch to cleaner, more efficient transportation solutions, Hong Seh offers a range of high-performing electric vans designed to meet your operational needs while contributing to a greener planet.
