Everything You Need To Know About Electric Vehicles In Singapore: 2022
All things considered, the growing concern around climate change is increasing the buzz around electric vehicles (EVs) and interest is consistently on the rise. EVs are known for having a lower environmental impact and are more cost-efficient, making them the superior choice for many environmentally conscious consumers.
When one starts to contemplate purchasing a new vehicle, often many important factors come to play. Now that EVs are growing in popularity, you might find yourself interested in knowing more about them.
In that case, this article is for you. We break down everything you need to know about owning EVs in 2022.
Main Points To Consider When Getting An EV
Of course, there are some factors that might be a higher priority for certain consumers and more of an afterthought for others. For this reason, we have put together the top 5 things that we think you need to know.
- Singapore is shifting towards greener energy
While you might think that this is not an urgent factor to consider, we believe it is. As a part of The Singapore Green Plan, Singapore aims to achieve 100% cleaner energy vehicles within the next two decades.
Looking even nearer into the future, the goal is to reduce peak land transport emissions by 80% by 2030.
2. LTA providing numerous incentives
From January to May of this year, EVs made up 8.4% of all new car registrations, which is 20 times the rate in comparison to 2022. This is thanks to the Land Transport Authorities’ (LTA) initiative offering incentives* to those registering Cleaner-Energy Vehicles:
- EV Early Adoption Incentive
- From 1 January 2021 to 31 December 2023, newly registered electric cars and taxis will receive a 45% off the Additional Registration Fee (ARF), capped at $20,000.
- From 1 January 2022 to 31 December 2023, the ARF floor has been lowered from $5,000 to $0.
- Enhanced Vehicular Emissions Scheme
- From 1 January 2021 to 31 December 2022, the rebates for vehicles in both Bands A1 and A2 will be increased by $5,000 for cars, and $7,500 for taxis. A car in Band A1 will enjoy a $25,000 rebate, and a car in Band A2 will enjoy a $15,000 rebate.
- To encourage the take up of more EVs, motorists who buy cleaner vehicles will be entitled to increased concessions of up to $25,000, while those purchasing more pollutive vehicles have to pay more.
Please note that this is not a comprehensive list of the incentives being offered by the LTA.
3. No More Petrol Worries
With the many surprising and unexpected events that have already taken place in 2022, it is quite hard to predict the direction that fuel prices are headed towards. To be on the safe side, one can assume that prices are going to continue moving in an upward trajectory.
With an EV, you can expect your yearly costs to be around 40-50% less than what you would for an international combustion engine (ICE) vehicle. Furthermore, the availability of charging stations is quickly growing throughout the island, with 60,000 EV charging points expected by 2030.
4. Lower Ancillary Costs
Unlike ICE vehicles, EVs have fewer moving parts. You will no longer have to worry about exorbitant and constant maintenance fees, such as checking valves or spark plugs, and even changing oil.
5. The Affordability of EVs
At the end of the day, if you consider the other factors, you will still be saving money in the long-run, even though you may be coughing up more in the short-run.
Furthermore, EVs with an output of less than 110kW (140nhp) are being reclassified from Category B to Category A, leading to an even further reduction in prices for these vehicles. You can find out more about that here.
To get a head start on your research, here’s a price list estimate of the most popular EV models as of May 2022:
|
Car |
Starting Price |
| BYD e6 | $115,000 |
| Porsche Taycan | $480,000 |
| Tesla Model 3 | $200,000 |
| Hyundai KONA Electric | $150,000 |
| BMW iX Drive40 | $400,000 |
Insuring Your EV
Convinced that EVs are the future? Well, there’s one more thing you need to consider. Arguably the most important aspect of purchasing a vehicle, be it an EV or otherwise, is motor insurance coverage.
Want to find out more about insurance for your EV or hybrid vehicle? Give Budget Direct Insurance a call at +65 6221 2111, Mondays to Fridays, 9am to 8pm, or Saturdays 9am to 3pm (excluding public holidays).
Coverage is dependent on a variety of factors, that their team of experienced specialists will help you navigate, and make sure you’re covered.
Link to article: “Changes to COE From May 2022: Here’s What To Know”
Link to article: “Can Electric Vehicles Be Affordable In Singapore?”