Electric vehicles (EVs) are no longer just the future—they’re the present in Singapore.
With rising consumer demand, government incentives, and an influx of new brands, especially from China, the local automotive landscape is rapidly evolving. BYD, a Chinese EV giant, recently made history by becoming the best-selling car brand in Singapore in 2024, a feat that underscores the growing dominance of EVs on Singapore’s roads.
The Rise of EVs in Singapore
The surge in EV adoption in Singapore can be attributed to several factors, including government incentives and increasing consumer acceptance.
Buyers can enjoy up to S$15,000 off new EVs through government schemes, making these vehicles more affordable and comparable in price to traditional internal combustion engine (ICE) cars.
In 2024, EVs accounted for 33.6% of all car registrations, up from 18% in 2023.
Among the frontrunners was BYD, which secured its place as Singapore’s top car brand, registering 6,191 units—a staggering 337% increase from the previous year.
Chinese brands such as BYD, Xpeng, and Zeekr are capitalizing on this momentum, offering a wider range of models tailored to the Singapore market.
These include Category A EVs—smaller, less powerful cars that command lower Certificate of Entitlement (COE) premiums, making them more accessible to the average buyer.
Why Chinese EVs Are Dominating
Chinese EV brands have successfully positioned themselves as affordable, innovative, and reliable alternatives to established Japanese and European brands.
BYD, for instance, accounted for more than 40% of newly registered EVs in Singapore in the first half of 2024.
Anthony Teo, Managing Director of Vantage Automotive, highlighted how government incentives are helping to dispel the misconception that EVs are prohibitively expensive.
With competitive pricing strategies and a focus on introducing Category A models, brands like BYD are effectively capturing the market.
The growth of Chinese EVs is also fueled by their strong global reputation for technology and value.
With tariffs on Chinese EV imports rising in the United States and Europe, manufacturers are shifting their focus to markets like Singapore, where consumer acceptance and demand are growing.
The Impact on COE Premiums
The influx of new EV brands has had a ripple effect on COE premiums.
Industry analysts warn that as competition for COEs intensifies, prices may rise in the short to medium term.
Despite this, the long-term outlook remains optimistic. The growing variety of EVs in Singapore is likely to drive further consumer interest, creating a virtuous cycle of adoption and demand.
Challenges for New Entrants
While Singapore offers fertile ground for EV growth, it remains a highly competitive and challenging market.
New entrants must contend with Singapore’s small but affluent car market, strict entitlement policies, and a need to build brand recognition among discerning buyers.
Luxury EVs have traditionally led the market, with Singaporean buyers favoring premium brands.
However, Chinese EVs are now challenging this trend by offering competitive pricing and high perceived value.
What Lies Ahead for Singapore’s EV Market?
As more Singaporeans embrace EVs, the market is expected to grow further.
In an interview by CNA, Mr. Chan Cher Leong of BYD likened this phenomenon to the “longest queue in the hawker center” syndrome—once early adopters pave the way, others are quick to follow.
Analysts predict a significant shift from established Japanese brands to Chinese EVs as buyers seek better value for their money.
However, the success of non-Chinese brands like Hyundai has been limited, with inflation and COE quotas posing additional challenges.
The presence of global brands like Tesla, which climbed to fifth place in 2024 with 2,384 registrations, indicates that the competition will remain fierce.
EVs Are Here to Stay
The rise of EVs in Singapore is more than just a trend; it’s a transformative shift in the automotive market.
With Chinese brands leading the charge, offering competitive pricing and innovative models, Singapore is set to become a key player in the global EV landscape.
For motorists, the growing variety of EV options means more choices and better opportunities to adopt sustainable transportation.
As the market evolves, one thing is clear: the future of driving in Singapore is electric.
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