The car industry in Singapore is undergoing a rapid evolution as the nation-state embarks on ambitious efforts to decarbonise the country, reduce emissions, promote clean energy and transport, and digitalise the sector. The rise of the adoption of electric vehicles (EVs) is helping to make their approach feasible in the long term as the government seeks to encourage citizens to transition to lower-emission options.
Currently, the number of electric vehicles in Singapore stands at 11,941, with the leading car brands being China’s BYD at 22.4%, Tesla at 20.9%, BMW at 18.4%, and Mercedes-Benz at 12.6%. The EV market also comprises motorcycles, scooters, and eBikes as alternative mobility solutions. Furthermore, ecosystem stakeholders are rushing to ensure charging stations and infrastructure are readily available.
Are EVs going to be the next big technology in Southeast Asia?
Statista Research notes that buying an EV in Singapore is ideal for the population since the country has limited land space, a compact city, shorter driving distances, and inadequate parking spaces.
Factors driving the adoption of EVsA recent survey conducted by Rakuten Insight showed that 37% of respondents intended to buy an electric car, which will increase the number of EV owners from the current 5%.
Here are a few factors driving the adoption of electric vehicles in Singapore:
Government initiatives
The Singaporean government has demonstrated its commitment to sustainability, developing several initiatives and policies to encourage EV usage. For example, according to the Land Transport Authority (LTA), the government passed the Singapore Green Plan 2030, aiming to have cleaner-energy vehicles by 2040. It launched the ‘Power EVery Move’ campaign to highlight the benefits of owning EVs—for owners and the environment—and encourage everyone to graciously share charging infrastructure.
They are pushing for citizens to play a part by buying EVs, walking, cycling, or taking public transportation, which is undergoing upgrades to have more electric buses plying the routes. The nation-state aims to achieve sustainability by switching from internal combustion engine (ICE) vehicles to electric cars. The LTA says such a move will reduce carbon emissions by 1.5 to 2 million tonnes, about 4% of total national emissions.
The Ministry of Transport (MoT) supports the transition and adoption of electric vehicles through policy measures like the EV Early Adoption Incentive (EEAI), which reduces the price of buying and owning one. The government also passed the Electric Vehicles Charging Act to ensure the country maintains a safe, reliable, and accessible EV charging network.
Infrastructure development
Developing the infrastructure around the EV ecosystem is vital for growth and acceptance. Battery-powered EVs are the most popular cars compared to Plug-In Hybrid EVs, with annual sales projected to reach 5,130 by 2028. That number is almost ten times the expected sales volume for plug-in hybrid electric vehicles.
The MoT plans to deploy 60,000 EV charging points by 2030, including 40,000 in public car parks and 20,000 in private residences. By 2025, every area operated by the public housing authority (Housing & Development Board or HBD) will also be EV-ready.
Consumer preferences
In an October 2021 survey, Statista Research found that 58% of respondents supported Singapore’s transition toward EV adoption. At the time, only 2,942 electric vehicles out of 568,376 cars were in use.
Currently, there is a consistent push to increase these numbers as the nation-state aims to reduce greenhouse gases and protect the environment. Many citizens are willing to shift to EVs if they are affordable, stylish, and have a good range.
Vehicle-to-everything (V2X) systems that allow vehicles to communicate with other devices are emerging. These systems enhance the driving experience and open up new possibilities for smart transportation systems.
Future of the car industry in Singapore in light of the EV revolution
The EV revolution in Southeast Asia is making significant strides. With the phasing out of ICE vehicles, EVs will become the standard in the coming years. This transition will reduce carbon emissions, improve air quality and reshape the car industry in Singapore. However, a few challenges remain to ensure EVs become the primary and attractive choice. For example, the purchase price is still too high.
Other EV adoption challenges include high maintenance costs, high road tax rates, expensive insurance premiums, and a pricey road quota certificate. The country’s car industry cannot sustain those trends for long, so change is needed.
Regardless, by sustaining infrastructure investments, supportive policies, business-friendly regulations, and price subsidies, it will eventually be easier to own an EV in Singapore. Due to the limited land space and congested city, the government still seeks to ensure the majority of citizens use mass transport options like eBuses. Thus, expect to see electric taxis and buses in the long term.
It has taken a while for a diverse range of electric vehicles in Singapore to become available, matching the creativity seen with traditional car models. Battery storage capacities are also better, meaning the vehicles can reach a distant range. These bode well for the industry and future of EVs.