Automotive

Why the Parf rebate drop is a big change for Singapore’s car owners

The $30,000 question: Why did Singapore slash the Parf rebate? Derryn Wong finds out.

Stellantis has been trying to stabilise its operations under CEO Antonio Filosa, who was installed last year after drastic cost cuts affected vehicle quality and put off buyers.

Stellantis weighs deals with China rivals to shore up Europe

European and US carmakers have largely trailed Chinese competitors in cost and battery technology, after state subsidies from Beijing

The high cost of cars in Singapore is the main factor driving purchases in Malaysia, industry players say.
BRUNCH

Speed and savings: What’s driving Singaporeans to keep luxury cars in Malaysia

Businesses to aid this are emerging, with buyers drawn by lower costs, rare models and the simple joy of being behind the wheel

Figures obtained by ST showed that households in Singapore had outstanding motor vehicle loans of around $12.4 billion by the end of 2025.

Concerns over 100% borrowing for vehicles as outstanding car loans hit 12-year high

The ads promise buyers that they can skip the 30% or 40% down payment for a car through various schemes

The “Made in Europe” package has divided the 27 EU member states, resulting in multiple delays in finalising the package.

‘Made in Europe’ plan’s sting in tail for Asia and the wider world

The soon-to-be-finalised initiative will impact industries from cars to manufacturing, steel and defence

Industry observers said that the Parf rule changes might affect demand for larger, more powerful cars. But this may have been offset by the actions of dealers to preserve sales.

COE: Mainstream car premium exceeds that of large cars for the first time in almost 6 years

Category B drops more than 5% to S$105,001 on recent deregistration rebate changes, but more uncertainty lies ahead, say observers

The full impact of the recent updates to car taxes in Budget 2026 are unlikely to be seen immediately.
COMMENTARY

Singapore’s Parf rebate cut may favour China EV brands as ownership and borrowing costs rise

Industry players say the move will have far-reaching consequences across the automotive value chain

Many domestic EV-makers have managed to shorten their R&D cycles for new cars to under two years, a production line manager at a carmaker told Caixin.

Chinese automakers’ need for speed comes with a price

Chinese regulators have taken notice of the drawbacks of short R&D cycles

Luxury cars will face higher depreciation because of the move, which could affect sales.
SINGAPORE BUDGET 2026

Budget 2026: Parf rebate changes could boost EV adoption and COE renewals but dampen luxury car sales

Observers say that the reduction of de-registration rebates for cars will favour electric vehicles over petrol and petrol-electric hybrids