Top 7 Reasons to Buy an EV in 2025

February 16, 2025

From commercial electric lorries to consumer cars, EVs offer a compelling alternative to traditional combustion engine vehicles, prompting their rising popularity.

But what exactly are the benefits that businesses in Singapore can experience when they transition their fleets to electric?

1. Better for the Environment

EVs offer a significant advantage over traditional combustion engine vehicles when it comes to environmental impact. Studies have shown that increasing electric vehicle adoption can directly reduce greenhouse gas emissions.

For example, research indicates that a 1% rise in EV sales within a city can lead to a 0.096% decrease in CO2 emissions locally and a 0.087% reduction in nearby cities. This reduction is attributed to the substitution effect (replacing polluting vehicles), the energy consumption effect (using cleaner energy sources), and the technological effect (improving EV efficiency).

In Singapore, the push for electric vehicle adoption is particularly relevant, especially since EVs powered by the 2019 electricity mix had up to 11% lower greenhouse gas emissions than conventional diesel vehicles.

2. Cost-Effective in the Long Run

While the upfront cost of an EV might be higher than a comparable gasoline-powered vehicle, green cars offer significant cost savings over the long run:

Lower Fuel and Maintenance Costs

In Singapore, the average driver covers approximately 20,000 km per year, resulting in an estimated annual petrol cost of S$3,260. However, for EV owners, this cost can be significantly reduced. Depending on the charging method used (home, public, or commercial), EV charging costs can be minimally halved compared to petrol expenses.

Additionally, EVs have significantly lower maintenance and repair costs, roughly half that of gasoline-powered vehicles. Besides, EVs have fewer moving parts and don’t require oil changes, transmission fluid flushes, or other routine maintenance associated with combustion engines.

Financial Incentives for EV Fleet Owners

The Singapore government is also offering several financial incentives to encourage more people to buy electric vehicles, making them even more budget-friendly for businesses:

EV Early Adoption Incentive (EEAI): From 1 January 2024 to 31 December 2025, newly registered fully electric cars and taxis receive a 45% rebate off the Additional Registration Fee (ARF), capped at S$15,000.
Enhanced Vehicular Emissions Scheme (VES): This scheme provides rebates for vehicles with lower emissions, further incentivising the purchase of EVs.
Commercial Vehicles Emissions Scheme (CVES): Commercial vehicles are categorised into three bands, with incentives ranging from S$15,000 for the least pollutive to a S$15,000 surcharge for the most pollutive, encouraging businesses to choose cleaner options.
Enhanced Early Turnover Scheme (ETS): This scheme provides incentives for businesses to replace older, more polluting vehicles with cleaner alternatives, including EVs.

3. Superior Performance and Handling

Get ready for a driving experience that surpasses those traditional gasoline-powered vehicles in various ways, including:

Smoother and Quieter Rides: Electric drivetrains, without the complex mechanisms of gears and combustion, deliver a remarkably smooth and quiet ride. Besides, the absence of engine noise and vibrations in an EV creates a more comfortable and relaxing driving experience for your drivers.
Instant Torque and Acceleration: Electric motors provide instant torque, meaning maximum acceleration is available from the moment you press the accelerator. Consequently, electric vehicles offer quicker starts and effortless overtaking, enhancing both performance and safety.

4. Greater Energy Efficiency

Electric vehicles are inherently more energy-efficient than gasoline-powered cars, and this superior efficiency stems from several factors:

Electric Engines: The Efficiency Benchmark

Electric engines convert a higher percentage of their battery’s stored energy into motion. While cars with traditional internal combustion engines typically convert only around 20% of fuel energy into actual power for the wheels, electric engines boast an impressive conversion rate of over 60%. As a result, this efficiency advantage translates into lower energy consumption and reduced operating costs.

Regenerative Braking: Reclaiming Lost Energy

Electric cars often feature regenerative braking systems, which capture the kinetic energy typically lost during braking and convert it back into electricity to recharge the battery. For instance, Hong Seh Evolution’s LEVC EV van utilises this technology to preserve the charge in the drive battery, maximising efficiency and reducing energy consumption.

5. Convenient Charging Options

One of the key concerns about electric vehicles is charging convenience. However, Singapore is rapidly developing its charging infrastructure to support the growing adoption of EVs.

With a goal of 60,000 charging points by 2030, the Land Transport Authority (LTA) reports that over 15,300 charging stations are already available islandwide as of September 2024. Of these, around 7,100 are publicly accessible, with the rest located in private premises like condominiums.

While the majority of public chargers are slow chargers designed for overnight use, LTA is also expanding its network of fast chargers. Additionally, these fast chargers can also reduce charging time, taking a typical EV battery from 20% to 80% in about an hour.

LTA’s subsidiary, EV-Electric Charging, is responsible for deploying these chargers, with plans to install more fast chargers in HDB-owned commercial carparks by March 2025. With the increasing number of charging stations in Singapore, more EV owners can have convenient options for charging their vehicles, both in public spaces and at home.

6. Packed with Innovative Features

Beyond sustainability, electric vehicles also represent automotive innovation, especially since they often come equipped with advanced technology and features not found in traditional vehicles.

For example, integrated fleet management software provides real-time tracking, optimised routing, and predictive maintenance alerts, boosting efficiency and reducing operational costs for businesses.

Moreover, electric vehicles are designed with safety in mind, often incorporating features like lane departure warnings, collision avoidance systems, and electronic stability control, which enhance driver and pedestrian safety.

Also, the inherent design of EVs contributes to safety, as the lower centre of gravity due to battery placement improves stability and handling. Furthermore, the quiet operation of EVs reduces noise pollution, contributing to a calmer and more focused driving experience.

7. Promising Future Developments

Singapore is paving the way for a greener future with initiatives like the Singapore Green Plan 2030, which includes a strong emphasis on electrifying the vehicle population. This plan aims to support the country’s vision of 100% cleaner energy vehicles by 2040, demonstrating a clear commitment to sustainable transportation.

In line with this vision, the electric vehicle market is experiencing rapid growth, with continuous advancements in technology and an expanding range of models. New EVs, for instance, boast longer ranges, faster charging capabilities, and innovative features, making them an increasingly attractive option not only for common consumers but also for businesses.

Experience the Future of Business Transportation

From reducing your environmental impact and lowering operating costs to enhancing performance and accessing innovative technology, the benefits of electric cars are undeniable. So, when you switch to an electric fleet, you’re making a strategic move that positions your business for long-term success in an increasingly sustainability-focused world.

Are you ready to experience these benefits firsthand? If so, explore Hong Seh Evolution’s range of commercial electric vehicles and discover the perfect solution for your business needs.