SINGAPORE – Electric vehicle (EV) adoption in Singapore hit a new high in the first three months of 2025, with 4,383 units – 40.2 per cent of total car registrations – being EVs.

In 2024, EVs made up 33.6 per cent of total car registrations, which was up from 18.1 per cent in 2023.

This is as total car registrations – at 10,883 units – is 35.2 per cent more than in the same period in 2024, on the back of more certificates of entitlement (COEs) being available to register cars, based on Land Transport Authority car registration data published on April 16, 2025.

With 2,183 units, Chinese brand BYD not only has the lion’s share of the EV market but also dominates the total car market, representing one in five new car registrations.

This leaves Tesla (413 units) in second place and BMW (361 units) in third.

In all, 34 car brands registered EVs in the first three months of 2025, which is the same number of brands as in 2024.

Another Chinese brand, Xpeng, which was launched in Singapore in August 2024, is ranked fourth with 190 units, up from seventh position in 2024. GAC from China is ranked sixth, up from ninth.

Between the two Chinese brands is Mercedes-Benz in fifth, up one position from 2024.

With incentives to spur adoption and aggressive efforts by motor dealers to promote such vehicles, experts expect the share of EV adoption to continue to increase.

EVs can get up to $40,000 in tax breaks, while the cleanest petrol-hybrid cars on sale can qualify for $5,000 in rebate.

Conventional internal combustion engine cars can be slapped with up to $20,000 in penalty, depending on how poorly they fare in the Vehicular Emissions Scheme that favours EVs and hybrids.

The current incentives are valid until Dec 31, 2025.

EVs with a power output of up to 110kW use a Category A COE, while those above that threshold utilise Category B, which tends to be more expensive.

The Category B COE premium was $117,889 while Category A was priced at $97,724 at the most recent tender exercise.

Mr Vincent Ng, an automotive consultant for Vincar Group, distributor of Chinese EV brand GAC Aion, said that recently, prices of some Category B COE EVs have been significantly lowered, bringing them closer to what popular mass-market Category A COE EVs are going for, calling the situation an ongoing “price war”.

Mr Ng said that the incentives given to EVs are particularly significant for buyers of mass-market EVs, who are more budget-conscious than those shopping for luxury car models.

For instance, after rebates and agreeing to conditions like taking loan financing from the dealer, the BYD Atto 3 EV is priced at $157,888 with COE while the comparable Toyota Yaris Cross, a 1.5-litre petrol-hybrid, costs $180,888 after rebates.

Mr Ng estimates 45 per cent of EVs registered in Singapore in the first quarter of 2025 to be Category A COE models, and expects the adoption rate to breach 50 per cent sooner in this segment than in the B COE category.

Mr Say Kwee Neng, an industry veteran who does consultancy work for motor brands looking to enter Singapore, expects EV adoption to hit as much as 50 per cent of new car registrations “quickly”, noting that the tax incentives are “fairly irresistible”.

“As long as the rebates continue, more will buy as Singaporeans will do anything to claw out a better deal,” he added.

As for any roadblocks ahead that may hinder further EV penetration, Associate Professor Walter Theseira, a transport economist at the Singapore University of Social Sciences, said that even though many Chinese EVs are cheaper than comparable internal combustion engine cars, there will be those who resist switching because of concerns that the new alternatives may not be as robust and reliable as familiar non-electric models.

To allay such concerns, Prof Theseira said that there is a need for another Chinese EV brand, other than BYD, to sell in significantly large numbers.

This is as mass-market Japanese car brands are not coming up with compelling EV options, said Prof Theseira.

Top 10 EV brands (January-March 2025)

Associate Professor Alberto Salvo of the department of economics at NUS said that the record EV adoption rate should be celebrated.

This is given the positive impact that switching from internal combustion engine cars to EVs brings, including halving carbon emissions.

Electricity, which is generated from natural gas in Singapore, Prof Salvo noted, is still cleaner overall than filling up an internal combustion engine car.

“There is still a long way to go to get to the levels of Norway, but Singapore can be the Norway of the tropics. We have good systems in place.”

Norway is the world leader in EV adoption. In 2024, EVs made up 88.9 per cent of total new car registrations there.

He believes that Singapore should stay the course to encourage EV adoption and spur the growth of the charging network, which in turn will help to nudge consumers to make the switch, adding, “basically, the more (EVs) you see, the more it becomes the norm”.

In terms of overall car registration figures, Toyota is the second-biggest seller after BYD with 1,393 cars, of which 449 units came from parallel importers.

This is followed by Mercedes-Benz with 1,374 units, including 49 parallel imported cars.

Source: The Straits Times

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