Commercial vehicles in Singapore are essential in powering daily business operations across various industries. However, when buying a commercial vehicle, business owners should consider several factors to ensure their selected vehicle aligns with their specific operational needs.
What is a Commercial Vehicle?
A commercial vehicle is designed to tackle specific business tasks, from daily delivery runs to transporting staff or supporting the heavy lifting that comes with large-scale operations. To meet these needs, these vehicles are designed with practical features like increased cargo space and reinforced durability, ensuring they can handle the rigorous demands of daily commercial business operations across Singapore.
What Are The Different Types of Commercial Vehicles in Singapore?
There are four different types of commercial vehicles in Singapore:
1. Light Goods Vehicle (LGV)
Description: Light goods vehicles are cargo vans or lorries used for carrying and transporting goods, typically ideal for urban areas and shorter distances. However, some LGVs, like the LEVC VN5 electric cargo van, boast a total driving range of up to 513 km, enhancing their versatility. They can also include minibuses that accommodate up to 15 passengers.
MLW: Up to 3,500 kg
Requirements that your LGV needs to comply with: LGVs do not have special driving restrictions.
2. Heavy Goods Vehicle (HGV)
Description: Heavy goods vehicles are large trucks and lorries designed for transporting substantial goods such as construction materials, heavy machinery, and bulk products. They are ideal for long hauls and significant logistical operations requiring efficient transporting of large quantities.
For instance, you can consider an HGV like the 20 ft FARIZON H9E electric truck, which offers a total payload capacity of 4,085 kg. This capacity makes it especially beneficial for industries that need to move large quantities of materials in a single trip.
MLW: 3,501 kg to 16,000 kg
Requirements that your HGV needs to comply with:
All HGVs are required to have at least two rearview mirrors to enhance visibility. For HGVs with an MLW over 12,000 kg and registered after 1 April 2015, additional mirrors or camera devices are necessary to cover all blind spots. Vehicles registered before this date can opt to install either extra mirrors or a Fresnel lens on the passenger side window.
Additionally, HGVs must have a valid Vehicle Parking Certificate (VPC) if their MLW exceeds 5,000 kg. This certificate allows parking in designated areas (between 12 a.m. and 6 a.m.) when the vehicle is not in use.
For those HGVs that exceed a height of 4.5 meters, a police escort is mandatory to navigate through traffic, and a special permit may be required from the Land Transport Authority (LTA) for oversized vehicles, ensuring their safe movement on specific routes.
3. Very Heavy Goods Vehicle (VHGV)
Very Heavy Goods Vehicles are the powerhouses of the transport world, designed to handle the heaviest loads. These include vehicles like cement mixers, tankers, and large flatbeds transporting heavy construction equipment. VHGVs are vital for tasks requiring substantial hauling capabilities, such as construction and large infrastructure projects.
MLW: Over 16,000kg
Requirements that your VHGV needs to comply with: VHGVs must meet requirements similar to those for HGVs discussed above.
4. Goods-cum-Passenger Vehicles (GPV)
Goods-cum-Passenger Vehicles (GPVs) are versatile units like vans, buses, or lorries that are configured to transport both cargo and passengers. These vehicles are commonly used for dual purposes, such as delivery services that also require staff transportation or mobile workshops that need to carry both personnel and equipment. They blend functionality with efficiency, making them ideal for businesses that need to maximise their vehicle use.
MLW: Up to 5,000 kg
Requirements that your GPV needs to comply with:
Lorries are not generally permitted to transport passengers except for carrying workers between their homes and workplaces. However, to use a GPV for this purpose, strict safety protocols must still be followed. For instance, all cargo must be securely fastened to avoid hazards, and workers must be seated securely to prevent falls. Non-adherence to these safety guidelines can lead to penalties such as fines and demerit points from the Land Transport Authority and Traffic Police.
You can visit the Land Transport Authority’s official website for more information on the specific rules governing commercial vehicles in Singapore.
Guidelines When Buying a Commercial Vehicle in Singapore
Eligibility for Buying a Commercial Vehicle
Only registered companies in Singapore are permitted to purchase commercial vehicles. Individuals can only buy these vehicles if they possess a hawker license issued by the National Environment Agency (NEA).
Obtaining a COE (Certificate of Entitlement)
You need a Certificate of Entitlement (COE) to buy a commercial vehicle in Singapore. This certificate, obtained through an open bidding process held twice a month, grants you the right to vehicle ownership and use for a specific period.
Commercial vehicles typically fall under Category C (Goods Vehicles and Buses), although you can also bid under Category E, an open category that often has higher prices. Keep in mind that the COE can be renewed after ten years, but the vehicle’s lifespan is capped at 20 years, after which you must deregister it and bid for a new COE if continued use is desired.
Notably, COE prices for commercial vehicles, such as goods vehicles and buses, have recently increased, climbing to S$69,000 from S$68,340 in the previous bidding exercise. This increase highlights the importance of strategically planning your budget when purchasing a commercial vehicle and managing its operational costs in Singapore.
Commercial Vehicle Insurance in Singapore
All vehicles in Singapore, including commercial ones, must have valid motor insurance. This is not just a legal obligation but also a prerequisite for renewing your road tax, as your vehicle must be insured for the entire road tax renewal period.
Ensure that your policy covers third-party liability for deaths and injuries, along with additional benefits like coverage for vehicle damage, access to approved workshop repairs, and income replacement during repair downtime—especially vital for businesses relying on these vehicles.
Can You Use a Commercial Vehicle for Personal Needs?
Singapore’s regulations strictly limit the use of commercial vehicles for business purposes. This means you cannot use these vehicles for everyday personal activities like family outings or personal errands. Using a commercial vehicle for non-business-related activities can lead to hefty fines or imprisonment for repeat offences.
Invest in the Right Commercial Vehicle
Buying a commercial vehicle isn’t just about delivering goods or getting staff from one place to another—it’s about optimising efficiency and supporting your business operations effectively.
At Hong Seh Evolution, we offer businesses in Singapore high-performing and innovative light goods and heavy goods electric commercial vehicles that combine performance, sustainability, and cost savings. Our range includes EVs from leading brands such as BYD, DFSK, Farizon, LEVC, and more.
By electrifying your fleet with these high-quality and reliable EVs, you can reduce emissions, lower operating costs, and future-proof your business in a growing eco-conscious market.
Explore our line-up of commercial electric vehicles today, including versatile electric cargo vans for deliveries, powerful trucks for heavy-duty cargo, and efficient electric buses for staff transport. Elevate your business with reliable and eco-friendly transport solutions with Hong Seh Evolution.
