TransportBT: Singapore’s EV revolution - emissions, loopholes, and commercial vehicles
IN THE bustling world of technological advances, the spotlight now shines on electrification, especially in the commercial vehicle sector. In the latest episode of TransportBT, a podcast from The Business Times, correspondent Derryn Wong dives deep into the electrification journey of commercial vehicles in Singapore with Edward Tan, executive director, Hong Seh Group to share insights on the hurdles and triumphs of this significant shift.
Government incentives
Singapore’s push towards electric vehicles (EVs) has seen remarkable success, particularly in the light goods vehicle sector. As of September 2024, 44 per cent of new van registrations are electric, a testament to the favourable policies and growing acceptance. Edward Tan recounts how Hong Seh shifted from luxury cars to electric commercial vehicles, marking a transformation in the automotive landscape. The government’s incentives, like the $30,000 discount on EV purchases, played a crucial role. Although this has reduced to $15,000, it continues to support the transition towards greener alternatives.
Unintended loophole
Despite the success in lighter vehicles, Singapore’s policies have inadvertently created loopholes in the heavy goods vehicle sector. The lack of incentives for heavy vehicles led businesses to circumvent regulations by reclassifying their fleet to avoid penalties. Tan explains that while the government made strides with light goods vehicles, heavy and very heavy vehicles were left without similar incentives, impacting overall emissions reduction efforts. The need to adapt policies to match the fast-evolving technology landscape remains pressing.
The conversation shifts to the rapid advancements in EV technology, particularly for heavier commercial vehicles. Tan discusses the improvements in battery range and the development of energy storage solutions to support refrigerated transport. These advancements herald a promising future for the industry, suggesting that what was once seen as limitations are quickly being overcome.
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Supportive policy changes
Wong and Tan both underscore the importance of supportive policy changes to bridge gaps in the current system. As EV technology continues to advance at breakneck speed, aligning regulatory frameworks with market capabilities will be essential.
Further stating that for Singapore to fully realise its green transport goals, a collective effort from the government, industry players, and consumers is necessary.
Listen to the full episode to gain a better understanding of the strategic steps needed to get there.
Stay tuned to TransportBT for more insightful discussions. Next week, BT Correspondents will delve into the property market. For thoughts or questions, contact us at btpodcasts@sph.com.sg.
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Written and hosted by: Derryn Wong (derrynwong@sph.com.sg)
With Edward Tan, executive director, Hong Seh Group
Edited by: Emily Liu & Claressa Monteiro
Produced by: Derryn Wong & Emily Liu
Engineered by: Chai Pei Chieh
A podcast by BT Podcasts, The Business Times, SPH Media
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