Singapore slashes incentives for some heavy EVs to S$15,000 from S$40,000

[SINGAPORE] The Land Transport Authority (LTA) announced on Wednesday (Sep 2) that incentives for electric heavy vehicles (EHVs) with a maximum laden weight exceeding 3,500 kg and up to 7,000 kg will be reduced to S$15,000 from S$40,000.

Those with a maximum laden weight above 7,000 kg are not affected, and will still receive the incentive of S$40,000 when the changes kick in on Thursday.

EHVs are fully electric versions of heavy commercial vehicles, also known as heavy goods vehicles.

Under LTA classification, these are vehicles with a maximum laden weight of more than 3,500 kg and include the likes of prime movers, and garbage lorries. 

The regulator added: “This ensures that the scheme remains fit-for-purpose, as more models of lighter zero-tailpipe emission heavy vehicles are now available in the market, and the cost differentials between these heavy vehicles and their internal combustion engine (ICE) equivalents have narrowed.”

Under the Heavy Vehicle Zero Emissions Scheme introduced in January 2026, owners of all EHVs received S$40,000 each.

This was meant to encourage the take-up of less polluting, fully electric heavy vehicles by reducing their cost, compared to ICE models.

LTA said the take-up of EHVs has been “encouraging” since the scheme began; these vehicles made up 30 per cent of heavy vehicle registrations in July 2026, up from less than 1 per cent in 2025.

It added that lighter EHVs with a maximum laden weight exceeding 3,500 kg and up to 7,000 kg have had “particularly strong” uptake, comprising 55 per cent of new registrations in July.

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The $40,000 incentive will still apply to EHVs with a maximum laden weight of above 7,000 kg, as “the cost differential with their ICE equivalents remains significant”, LTA said.

The Heavy Vehicle Zero Emissions Scheme will continue to run until Dec 31, 2028, it added.

Sector watchers have said that EHV incentives and increased demand for the vehicles contributed to higher Certificate of Entitlement premiums in Category C, which covers commercial vehicles, The Business Times previously reported.

The category reached a new record of S$95,000 in July 2026.

The Electric Heavy Vehicle Charger Grant, which also began in January 2026, is not affected by the changes. It co-funds up to half of installation costs for EHV chargers, capped at S$30,000.