Singapore’s electric heavy vehicle incentives will kick-start adoption, but not that soon: industry players

[SINGAPORE] Upcoming incentives for electric heavy vehicles (EHVs) and their charging infrastructure should spur adoption and accelerate the introduction of more models to Singapore, said industry observers.

But as these subsidies begin only in 2026, companies might hold off on EHV purchases until then, they added.

The Heavy Vehicle Zero Emissions Scheme and Electric Heavy Vehicle Charger Grant were announced earlier in March. The first provides a S$40,000 incentive to businesses that register a fully electric commercial vehicle – including goods vehicles, goods-cum-passenger vehicles and buses – with a maximum laden weight of more than 3,500 kg.

The grant co-funds half the cost of EHV chargers, capped at S$30,000 per charger with a limit of three chargers per company site. These chargers must be installed at designated lorry or coach lots, and must be fast chargers with a minimum power rating of 50 kilowatts.

Lower burden

The incentive could have the same effect as the Commercial Vehicle Emissions Scheme (CVES) for light commercial vehicles, said Edward Tan, executive director of Hong Seh Group, the distributor of multiple commercial vehicle brands.

Introduced in 2021, CVES incentivises cleaner light commercial vehicles such as electric models, and penalises heavier-polluting ones. Since it began, electric light goods vehicles have started to displace diesel ones, accounting for around half of all new light goods vehicles registered in 2024.

“We saw very good progress when CVES began with a S$30,000 incentive. This is similar as it brings some EHVs close in price to existing diesel models,” Tan said.

A Farizon H9E 14-foot electric lorry, which weighs around 8,000 kg, costs about S$170,000 with a Certificate of Entitlement (COE). The S$40,000 incentive brings it closer to diesel competitors, which cost around S$120,000 with COE.

Ryan Woon, director of EcoSwift – the distributor of China commercial vehicle brand Sany – said that the moves address the chief concerns of EHV adoption: high upfront costs and insufficient charging infrastructure.

With the incentive, an EHV weighing less than 5,000 kg will cost less than an equivalent diesel model, said Woon. For EHVs weighing between 5,000 kg and 16,000 kg, their purchase price will become roughly the same as that of their diesel counterparts.

Heavy, heavier, heaviest

For the heaviest vehicles, the grant may be less effective. For instance, it might not be enough for electric versions of larger, heavier vehicles such as prime movers or garbage trucks, said Tan.

Woon noted that EHVs heavier than 19,000 kg remain more expensive than diesel equivalents, typically because they need a larger battery – the most expensive component of an EV.

For example, BYD’s T9R – a heavy-duty electric truck – is priced from S$388,000 without COE, while diesel prime movers cost around S$200,000 without COE.

In response to queries, a Land Transport Authority (LTA) spokesperson noted that the scheme runs from 2026 to 2028, and added: “We will review it thereafter, taking into consideration the adoption of zero-emission heavy vehicles across the various segments.”

Still, in Singapore’s highly competitive market, the incentive will help even for more expensive EHVs, said Jimmy Peng, associate professor at the National University of Singapore’s Department of Electrical and Computer Engineering.

Li Zhengxi, director at BYD electric commercial-vehicles distributor Inchcape, agreed that S$40,000 is a good starting point, even for more expensive EHVs.

Kim Yoon Young, the cluster president of Singapore and Brunei for Schneider Electric, said that while cost pressures may prevent some fleet owners from going fully electric in the near term, this position should shift over time.

A study by Schneider showed that “cutting emissions is now just good business sense”, and business leaders in Singapore are “strongly motivated” to meet emissions targets, he added.

The incentives could also cause the EHV market to mature further, bringing costs down.

Shell Mobility Singapore’s general manager Doong Shiwen said the move will encourage authorised distributors to import more electric versions of larger, heavier commercial vehicles, resulting in more options and competitive pricing.

Forward charge

Similarly, the charger grant may not always be sufficient. EcoSwift’s Woon said that while S$30,000 is “ample” for charger installation, it may fall short for sites requiring major work, such as substation upgrades.

Fast chargers need high-voltage wiring, and the cost of installing this can range from tens of thousands to a few hundred thousand dollars, said industry players.

Timing is also a concern. As the moves begin only in 2026, EHV dealers expect business to take a hit this year.

“While the move is a good one, the timing could be better. All my potential customers have held off on buying, and the (EHV) market will be at a standstill until 2026,” said Hong Seh’s Tan, whose company distributes mostly electric commercial vehicles.

EcoSwift’s Woon, whose company also specialises in EHVs, said: “(The delay) presents a significant challenge to my business. I cannot, in good conscience, encourage my customers to take delivery of their EHVs now – which means my business will face considerable setbacks over the next nine months.”

In response to queries, an LTA spokesperson said the intent was to give “sufficient lead time for buyers to adjust their concept of operations to accommodate electric variants, and for dealers to bring in suitable models”.

Prof Peng considers the timeframe “reasonable”, as it allows companies to plan their spending for the next financial year and assess their electrical infrastructure.

“We will likely see a rise in EHVs in early 2026, before the end of the next financial year,” he said.