Singapore is renowned as a trailblazer in innovation and technology, consistently pushing the boundaries across various domains, including environmental sustainability. This forward-thinking approach is prominently reflected in the country’s growing popularity of electric vehicles (EVs). Notably, the number of electric cars has surged from 6,531 units at the end of 2022, which was about 1% of the total car population, to 16,738 units, representing 2.6% as of 31 May 2024.
This upward trend is expected to continue, supported by numerous government subsidies in Singapore, along with incentives and initiatives that make the transition to cleaner energy vehicles more accessible and appealing.
Government Policies on EV Transition
Under the ambitious Singapore Green Plan 2030, the nation sets clear targets to enhance sustainable development. A significant policy within this plan is the phase-out of diesel vehicle registrations starting in 2025, signalling a shift towards more environmentally friendly transportation options. By 2030, it will be mandatory for all newly registered cars and taxis to be cleaner-energy models.
This forward momentum makes now an excellent time to consider transitioning to an electric vehicle, ensuring you stay ahead in adopting sustainable and advanced transportation solutions.
Incentives for Cleaner-Energy Vehicles
Review the numerous incentives Singapore’s government offers to support the country’s transition to cleaner energy and electric vehicles.
1. EV Early Adoption Incentive (EEAI)
The EV rebate in Singapore for early adoption offers 45% off the Additional Registration Fee (ARF), capped at S$15,000 for fully electric cars and taxis from 1 January 2024 to 31 December 2025. For those wondering what ARF is iin Singapore, it is a tax imposed at the point of registration, calculated based on the vehicle’s market value.
2. Enhanced Vehicular Emissions Scheme (VES)
The VES classifies cars into different bands based on their environmental impact. From 1 January 2024 to 31 December 2024, cars in Band A1, which produce the least emissions, will qualify for a S$25,000 rebate. Those in Band A2, with slightly higher emissions but still environmentally friendly, will receive a S$5,000 rebate.
3. Commercial Vehicles Emissions Scheme (CVES)
Commercial vehicles in Singapore are categorised into three emission bands based on their pollutant levels. Vehicles with the highest emissions incur a S$15,000 surcharge, whereas those with the lowest emissions benefit from a S$15,000 incentive. This scheme, effective from 1 April 2021 to 31 March 2025, encourages businesses to opt for environmentally friendlier vehicles or transition to commercial electric vehicles.
4. Enhanced Early Turnover Scheme (ETS)
From 1 April 2021, the ETS incentive is available for Euro 4 Category C diesel vehicles. This incentive offers financial benefits to owners who upgrade their commercial vehicles—like trucks and buses—to meet Euro 4 emission standards, which limit pollutants. The aim is to accelerate the replacement of older vehicles with newer, cleaner models.
Revised Road Tax Framework
From 1 January 2022, Singapore’s Land Transport Authority has adjusted the EV road tax to align more closely with that of gasoline-powered cars. This adjustment lowers the road tax for EVs with power outputs between 90-230kW, ensuring they are taxed similarly to comparable internal combustion engine (ICE) vehicles of similar makes and luxury levels.
Additionally, the maximum allowable power output for electric cars that can be classified under Category A has been raised from 97kW to 110kW. By increasing this limit, the policy now allows a broader range of electric cars to qualify for Category A benefits, thereby facilitating greater access to tax incentives and encouraging the uptake of environmentally friendly and fully electric vehicles.
Publicly Accessible Electric Vehicle Charging Stations
As Singapore progresses in its adoption of electric vehicles, ensuring accessible charging stations remains a critical consideration for potential switchers. In response to this need, the government has intensified efforts to expand the electric vehicle charging network. This proactive approach has culminated in a robust expansion of infrastructure, with 3,661 publicly accessible charging points available across Singapore as of June 2024.
This expansion is set to continue to multiply, with the government aiming to establish 60,000 electric vehicle charging stations by 2030, with 40,000 in public car parks and 20,000 in private premises. These efforts ensure that the availability of charging stations keeps pace with demand, making electric vehicle ownership increasingly feasible and convenient.
Design Standardisation of EV Charging Lots
As the landscape of urban mobility shifts towards sustainability, electric vehicle charging stations are becoming an integral part of city infrastructure. Therefore, it is essential to have a design that clearly differentiates these stations from traditional fuel stations and other architectural elements, helping to avoid confusion.
To address this issue, EV Charging Operators (EVCOs) are urged to adopt a uniform design—painting all EV charging lot borders green, highlighted by a bold “EV Charging Only” sign in white. This standardisation ensures that electric vehicle charging stations are as easily identifiable as standard fuel stations, seamlessly integrating into the urban landscape.
Moreover, consistent visual cues enable existing and potential EV drivers to quickly adapt and confidently embrace this sustainable technology.
Benefits of Transitioning to EVs
Switching to electric vehicles in Singapore presents a compelling range of benefits, including:
- Environmental Contributions: Adopting EVs lowers carbon emissions and enhances air quality, offering a cleaner, more sustainable solution that benefits both the environment and public health.
- Financial Incentives: Governments are increasingly backing EV adoption with compelling incentives such as tax breaks and subsidies. These financial perks make transitioning to EVs not only environmentally prudent but also economically advantageous.
- Cost Savings: Businesses benefit from significantly lower maintenance and energy costs with commercial electric vehicles, along with substantial tax incentives, leading to considerable reductions in long-term operational expenses.
- Operational Efficiency: Reduced downtime and fewer mechanical issues streamline operations, boosting productivity and ensuring a smoother, more reliable business workflow.
- Enhanced Driving Experience: EVs deliver smoother acceleration and quieter operation, optimising performance for delivery services and improving the overall driving experience for operators.
- Technological Advancements: Continuous advancements in EV technology ensure superior performance, safety, and connectivity features that future-proof transportation needs.
Make the Green Switch Now
Embracing a sustainable future means making informed choices today. For businesses, this means leveraging the various government subsidies and incentives that make transitioning to electric vehicles a smart, cost-effective decision for enhancing their operational efficiency.
Hong Seh Evolution, a leading authorised distributor in Singapore, offers a lineup of high-performance commercial electric vehicles, including an electric van and electric lorry, that can help your company lead in eco-friendly transportation.
Drive sustainable change—switch to electric with Hong Seh Evolution today. Contact us now.
