Singapore tightened its vehicular emissions scheme on Monday, extending it until 2027 with rebates limited to fully electric cars, while more polluting vehicles will face higher surcharges.
A separate EV early adoption incentive was extended until December 2026, though at half its previous cap, before being scrapped entirely.
The moves are part of Singapore’s plan to phase out fossil fuel-powered vehicles by 2040 and may entice consumers to buy more EVs.
In the first quarter, electric vehicles accounted for about 40% of the more than 10,800 new cars sold, according to the Land Transport Authority. BYD already surpassed Toyota Motor Corp as Singapore’s top-selling car brand in 2024.
Competitive pricing, along with government incentives, are boosting the success of Chinese EV makers in Singapore, according to Michael Li, associate professor at Nanyang Technological University.
Chinese car brands are increasingly attractive to buyers because they often come loaded with advanced features such as assisted driving systems, connectivity functions and in-car tech at prices that undercut many Western and Japanese rivals.
“This is something the mass market Japanese and Korean carmakers have been lagging on,” said Walter Edgar Theseira, associate professor at Singapore University of Social Sciences.
Squeezed by fierce competition at home, Chinese automakers are stepping up their push overseas. In Singapore, that translates into more aggressive deals for consumers, said Neo Tiam Ting, president of the Singapore Vehicle Traders Association.
More EV makers from the world’s biggest automobile market are also launching in the city-state. Jiangxi Jiangling Group New Energy Vehicle Co – also known as JMEV – debuted its Elight EV sedan in July, while Nio Inc said it will begin selling its Firefly compact EV in the first quarter of next year.
Irman Karim, a digital marketing specialist, said his family was initially skeptical about Chinese products. That changed as the reputation of Chinese EVs improved in Singapore and abroad, he said.
“People are buying Chinese EVs probably after realizing that China products are comparable with those from Japan, EU and US automakers,” Karim said.