Electric Vehicles (EVs) are definitely the future. Is now the right time to switch?
It seemed like such a novelty when Tesla delivered its first car in 2021. EVs were a rare sight then. Just three years later, EVs from brands like BYD and Hyundai are practically are everywhere.
One in three new cars registered in 2024 is now an EV. This is nearly double from 18.1% in 2023.
Government support is supercharging adoption.
From 2030, all new car registrations will be cleaner-energy vehicles to achieve our sustainability goals. Combine that with more mass-market EV models being available and strong government incentives — and it’s no surprise why EVs are taking off.
But what is it like to own an EV in Singapore? And should you make the switch from an internal combustion engine (ICE) vehicle?
Let’s break it down.
This article was written by a Financial Horse Contributor.
Total cost of ownership of EVs is lower than ICE cars
The government has implemented financial incentives that reduces the upfront cost of an EV by up to $40,000 to encourage EV adoption.
EV Early Adoption Incentive (EEAI)
This provides up to a 45% rebate on the Additional Registration Fee (ARF), capped at $15,000.
In simple terms, this allows you to realise the PARF savings upfront when buying the car, not at the end when you de-register it.,
For ICE vehicles, the cost savings are deferred to the end of the car’s lifecycle, through a larger PARF rebate at de-registration, which also includes a COE rebate.
Vehicular Emissions Scheme (VES)
This gives drivers additional rebates of up to $25,000 for zero-emission vehicles.
Most EV models fall under Band A1 of the scheme, which qualify for the maximum rebate.
Combined with the lower mileage and maintenance cost, this helps to lower the total cost of ownership compared to ICE cars, according to the LTA.
These rebates are available until the end of 2025, making now a good time to consider an EV if you’re in the market for a new car.
Charging Infrastructure in Singapore
There are over 7,100 charging points as of 2024, with plans to expand to 60,000 by 2030. More than a third of HDB car parks have installed charging points.
Presuming the government’s current policy to maintain the car population at around 650,000, this could translate to an eventual charger-car ratio of 1:11.
For comparison, China had a 1:7 ratio in 2022. It is around 1:14 in the US and around 1:17 in Europe.
However, context matters as charging behaviour varies. 95% of the population who live in HDBs and condominiums rely on shared charging stations.
It is also very easy to locate a charger with the mytransport.sg app.
User Experience: Owning an EV in Singapore
To answer that question, we turn to Reddit.
Here’s a summary of various threads (here, here, here and here).
The positives
- Smooth and Quiet Driving: EVs deliver a smooth and silent ride with instant acceleration, making them a joy to drive, especially for city driving. (EVs are more efficient than ICE cars in stop-and-go traffic.)
- Lower Maintenance Costs: Without complex engine components, EVs have fewer parts to maintain or replace, leading to lower servicing costs.
- Convenient Charging for Some: Drivers with home chargers and HDB/condos with charging infrastructure find it easy to integrate charging into their routines, often overnight.
- Improved Infrastructure:The increasing availability of charging points in malls and office buildings makes it easier to top up during errands or commutes.
The downsides
- High Upfront Costs: Even with government rebates, EVs on average remain more expensive to purchase than comparable ICE vehicles.
- Charging Accessibility Issues: Public charging stations availability will vary by location. Some drivers who live in high-demand areas face frustrations over finding are not always convenient or available slots.
- Road Tax and Insurance Costs: EVs incur a higher road tax, including a $700 flat component meant to offset fuel excise duties. Insurance premiums for EVs are typically higher than for comparable ICE vehicles.
These concerns line up with a recent survey Milieu conducted on Singapore’s EV infrastructure.
43% of drivers rate the infrastructure as ‘good’.
The biggest roadblocks for EV drivers:
- Too few charging stations (51%)
- Long wait times (49%)
- Inconvenient locations (49%)
- High costs (44%)
- Reliability issues (35%)
Overall, the feedback from EV drivers is that they are happy.
78% are confident the EV charging network will improve.
68% are happy with the availability of charging stations, and 69% are happy with the charging speed.
Conclusion
Before purchasing an EV, you need to assess how compatible it is with your lifestyle.
Figure out if you can integrate charging into your daily routines — either through an AC charger at home or at the office.
Are there chargers at malls or destination carparks you frequent? This is good to take an opportunity charge using the fast DC chargers during lunch or while running errands.
Take into account drivers’ advice to calculate the total cost of ownership (TCO), factoring in road tax, insurance, and charging costs.
And if there are big constraints, a hybrid car is a decent middle ground option.
As Singapore continues to invest in EV infrastructure and incentives, now is an opportune time to explore whether making the switch.
Are you planning to switch to an electric or hybrid vehicle soon?
Dear FH,
I think the ownership cost comparison table is flawed. It fail to take into account the significant higher annual road tax as well as higher yearly insurance premium.
If a driver do not drive too much, there is a possibility that he/she might find that owning a small cc ICE car might turn out to be cheaper then an EV car.
Cheer
True – appreciate the feedback!