HONG Leong Finance (HLF) is the latest among Singapore lenders looking to take a bite of the green car loan pie, turning its attention to vehicle rental companies, other than consumers.

On Tuesday, the financial services arm of Hong Leong Group launched a green vehicle financing initiative to increase the uptake of electric vehicles (EVs) and charging stations by vehicle rental companies.

The finance company is offering a 1.5 per cent per annum vehicle-green loan, up to seven years, as well as charger station financing as a compatible option under its charger-green loan scheme for up to three years.

HLF president Ang Tang Chor said: "In addition to customers who buy cars for personal use, we note that the vehicle rental category which includes private hire cars is a significant growing sector."

Singapore's private hire car sector grew 142 per cent over the last five years to 71,147 cars in 2020, according to Land Transport Authority figures.

"We want to be inclusive. With the government's enhanced rebates on green cars in place, these companies will benefit as early adopters of eco-friendly vehicles," Mr Ang said.

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HLF is the preferred financing of car distributor MG, offering financing packages to consumers purchasing eco-friendly cars. Its new offering to vehicle rental companies comes weeks after two of Singapore's largest lenders announced green loan offerings for EVs.

In mid-March, OCBC pushed out a 1.68 per cent per annum car loan package for EV purchases. All loan customers will also get up to 12 months of free charging at Charge+ charging stations.

Meanwhile, in February, DBS said it would offer loans at 1.68 per cent per annum for the purchase of new and used EVs and hybrids, starting in March. DBS first offered the preferential rate to Tesla car buyers as it is the American EV company's preferred financing partner in Singapore.

Singapore's transport sector is moving towards an increased focus on cleaner alternatives, with plans to cease new registrations of diesel cars and taxis from 2025.

The government is also setting aside S$30 million over the next five years for EV-related initiatives, such as improving charging provision at private premises. It plans to have 60,000 charging points by 2030.

On Monday, Singapore utility SP Group and Chevron Singapore announced a partnership to offer fast EV charging at selected Caltex service stations. These fast chargers charge an EV in 30 minutes, compared with the few hours needed by alternating current chargers - which are more commonly available.

The initial batch of chargers will be installed by the second quarter of 2021 at four Caltex service stations in Chong Pang (North), Changi (East), Jurong Spring (West) and Dunearn (Central).

READ MORE:

• Increased interest in electric vehicles suggests tipping point in Singapore

• Green vehicle perks: restrict them to public transport players

• 60% of Singapore taxis now run on cleaner energy

• More tax perks down the road to promote use of electric cars in Singapore

• New electric vehicle measures expected to jolt sales

• Electric vehicles less pollutive, but public transport still most sustainable way to get around: Ong Ye Kung