Chinese EVs set to gain share in Singapore as rebates extended
More EV makers from the world’s biggest automobile market are also launching in the city-state
[LONDON] Chinese automakers such as BYD look set to tighten their grip on Singapore’s market, after the city-state extended electric vehicle (EV) incentives for at least another 12 months.
Singapore tightened its vehicular emissions scheme on Monday (Sep 8), 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, EVs accounted for about 40 per cent of the more than 10,800 new cars sold, according to the Land Transport Authority. BYD already surpassed Toyota Motor 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, said Michael Li, an 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 South Korean carmakers have been lagging on,” said Walter Theseira, an associate professor at Singapore University of Social Sciences.
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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, also known as JMEV, debuted its Elight EV sedan in July, while Nio said that it will begin selling its Firefly compact EV in the first quarter of next year.
Irman Karim, a digital marketing specialist, said that his family was initially sceptical 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 realising that China products are comparable with those from Japan, EU and US automakers,” he added. BLOOMBERG
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