Singapore Sustains Government Support to Encourage Vehicle Electrification

To support its vision of 100% cleaner energy vehicles by 2040, Singapore’s Land Transport Authority (LTA) and its National Environment Agency (NEA) will continue to incentivise the adoption of cleaner energy vehicles, with an emphasis on electric vehicles.

The LTA said in a media announcement that it will extend the Electric Vehicle (EV) Early Adoption Incentive (EEAI) scheme by two years while the rebate for cleaner energy cars under NEA’s Vehicular Emissions Scheme (VES) will be adjusted. The S$0 Additional Registration Fee (ARF) floor for fully electric cars and taxis will also be extended till 31 December 2024.

With the revised rebates in effect from 1 January 2024 till 31 December 2024, buyers will be able to enjoy combined cost savings of up to S$40,000 off the ARF. Most mass-market electric car models will enjoy the same level of rebates as today.

Both the EEAI and the VES work in tandem to reduce the cost gap between cleaner energy cars (including electric and hybrid cars) and Internal Combustion Engine (ICE) cars, and have helped to boost the adoption of cleaner energy cars.

Cleaner energy car registration in Singapore has increased to close to 70% of all new car registrations in August 2023. Specifically, electric car registration has risen steadily on a monthly basis from January this year, to reach 23% of new car registrations in August. Since 2021, more than 8,000 electric cars and taxis have received the VES rebates and/or EEAI.

To sustain the momentum of electric car adoption, LTA will extend the EEAI by two years to 31 December 2025. The EEAI will continue to provide rebates off the ARF for a newly registered electric car or taxi. From 1 January 2024 to 31 December 2024, owners who register fully-electric cars and taxis will receive a rebate of 45% off the ARF, at a revised cap of S$15,000.