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Why Drive Electric Cars in Singapore?
In the last decade, electric vehicle sales in Singapore have grown at a remarkable pace, from just three EVs registered in 2012, to 6,531 by the end of 2022. More impressively, the numbers have surged further since: from 6,531 in 2022 to 26,225 by end-2024, and reaching 49,110 EVs by end-2025. Nearly eight times the 2022 figure. EVs now make up around 7% of Singapore's total car population, up from just 1% three years ago.[1]
If you used to rarely spot an EV on the road, that's no longer the case, and the numbers suggest you'll be seeing far more of them over time.
Is it time you started thinking about buying an EV?
EVs have moved firmly into the mainstream. What was once a small selection has grown to well over 50 electric models officially available in Singapore from authorised distributors, across a wide price spectrum. From practical, affordable options like BYD's compact models, to premium offerings from BMW, Mercedes-Benz, and Porsche. Chinese brands including BYD, AVATR, GAC Aion, Xpeng, Zeekr, and Deepal have joined more established names, increasing competition and helping bring prices down.[2]
Somewhere in that lineup, there's likely an EV that suits your budget and driving habits. For the average Singapore driver, the case is increasingly compelling. Singapore's compact urban environment and short daily commutes are well-suited to electric vehicles. Plus, the government continues to incentivise EV adoption through tax schemes and rebates.
Taxes and running costs of EVs
Singapore's EV incentive framework has evolved significantly. Two main schemes currently apply. The Vehicle Emissions Scheme (VES) — now restructured with Bands A1 and A2 merged into a single Band A — offers a rebate of $22,500 for eligible EVs registered in 2026, tapering to $20,000 in 2027. From 2026, only fully electric vehicles qualify for VES rebates; hybrids no longer receive this benefit. The EV Early Adoption Incentive (EEAI) provides a 45% rebate on Additional Registration Fees (ARF), capped at $7,500 for vehicles registered in 2026, before the scheme is phased out entirely at end-2026. Combined, eligible buyers can currently receive rebates of up to $30,000 off the cost of a new EV in 2026.[2][3]
Running costs are also lower for EVs than petrol cars. Charging costs vary depending on whether you charge at home or use public stations. Public AC chargers typically cost between $0.40–$0.65/kWh, while DC fast chargers can range from $0.60 to over $0.90/kWh depending on the operator and speed. Some commercial car parks still offer free charging, though these are becoming less common.[4]
For home charging, the current SP Group residential electricity tariff is $0.2727/kWh (before GST) for Q2 2026, significantly cheaper than public charging and considerably less expensive per kilometre than petrol.[5]
For petrol comparison, 92 RON currently averages around $2.90/litre across major retailers.[6]
We use the LTA's average annual private car mileage of 17,100km (2021) as our baseline for cost comparisons below.[7]
EV versus petrol comparison
We've chosen three EVs and their closest petrol equivalents for comparison. Worth noting, one of the 'petrol' cars is actually a hybrid, which combines a petrol engine with a battery and electric motor.
- Hyundai Kona Electric vs Kona Hybrid: Hyundai offers the Kona in both electric and hybrid form. The electric model offers up to 484km on a single charge, but comes at a higher purchase price and attracts higher road tax due to its more powerful electric motor. Compared to the very efficient (and cheaper), Kona Hybrid, the overall running cost advantage for the electric model is limited for the average Singapore driver. That said, EVs tend to need less servicing than hybrids, given fewer moving parts. For drivers covering significantly more than the average annual mileage who can also charge at home, the electric version could save around $1,000 per year, though the purchase price gap would still take many years to recover.
- MG EV vs MG Petrol: MG continues to offer a range of affordable EVs alongside petrol models. Even using the most expensive commercial charging rates, the MG EV is likely to reach break-even with its petrol equivalent within around 10 years due to lower running costs. For those who can charge at home, that figure drops to under four years, making the electric option genuinely compelling on a cost basis.
- Mercedes-Benz EQA vs GLA: Mercedes-Benz has one of the most aggressive EV line-ups in Singapore, with multiple fully electric models. On a per-kilometre basis, the EQA is cheaper to run than the petrol GLA even at peak commercial charging rates. However, the significant difference in purchase price means the average driver is unlikely to recover that gap through running cost savings alone.
Do EVs stack up?
Based on these examples, the economics of going electric are more compelling now than they were even a few years ago, but still mixed depending on which models you compare.
The picture is helped by the fact that EV prices have been coming down. Chinese brands in particular have introduced more affordable models that narrow the purchase price gap versus equivalent petrol cars. Smaller, less powerful EVs also attract lower road tax (calculated based on motor output), making Cat A models (those with up to 110kW of power output) particularly cost-effective. The COE category split matters too: Cat A COE premiums are typically lower than Cat B, and many entry-level EVs have been tuned to fit within the Cat A threshold.
One significant change since the earlier version of this article: the Hyundai Motor Group Innovation Centre Singapore (HMGICS) in Jurong has been operational since 2023 and is now producing Singapore-assembled versions of the Ioniq 5 and Ioniq 6. The Ioniq 5 was the first EV assembled in Singapore, launched at the 2023 Singapore Motorshow, followed by the Ioniq 6 in July 2024. As of mid-2025, the centre also produces the Ioniq 5 robotaxi, making it Singapore's first and only EV assembly facility.[8][9]
If your priority is reducing your environmental footprint, an EV is likely the better choice regardless of the purchase price calculation. Even though Singapore's electricity grid is primarily powered by natural gas, EVs still produce lower overall emissions on a lifecycle basis than petrol cars. And as Singapore progresses toward its Singapore Green Plan 2030 goals, including deploying 60,000 charging points and phasing out new internal combustion engine car sales by 2030, the long-term advantage of EVs will only grow.
What about the future?
The trajectory is clear: in 2025, EVs accounted for 45% of all new car registrations in Singapore — up from 18.1% for the whole of 2023 and 11.7% in 2022. In Q1 2026, EVs crossed a landmark threshold, making up 57.6% of the 13,322 new cars registered — the first time EVs have outnumbered combustion engine and hybrid models combined. BYD led the market with nearly one in four new registrations (24.3%), followed by Toyota and Tesla.[10]
The charging network is expanding rapidly too. Singapore's public EV charging infrastructure has grown to over 4,000 points across HDB carparks, malls, and commercial buildings. The government's target is 60,000 charging points by 2030, with every HDB town EV-ready. A goal that is largely on track, with over 1,600 HDB carparks already equipped with chargers.
On the product side, the market has changed substantially. Chinese EV specialists such as BYD, AVATR, GAC Aion, Xpeng, Zeekr, Deepal, and Dongfeng are now all present in Singapore, alongside established European and Korean brands. Japanese manufacturers, who were slow to embrace EVs due to their strength in hybrids, are also starting to catch up, with Nissan, Toyota (bZ4X, Lexus), and Subaru (Solterra) now offering electric options locally.
Is now the time to go electric? For many Singapore drivers the answer is now closer to 'yes' than it has ever been, particularly if you can charge at home, drive a reasonable annual mileage, and are looking at Cat A models where purchase prices have come down considerably.
Car Insurance for electric vehicles
Looking for low-cost car insurance for your electric or hybrid vehicle? Get better value with Budget Direct Insurance.
If you can't find your make or model on our website, just give us a call at 6221 2111, Mondays to Fridays, 9am – 6pm (closed on weekends and public holidays). Or you can email us at [email protected]. We're here to assist you.
Citations
[1] LTA Motor Vehicle Population by Fuel Type (2025) — https://www.lta.gov.sg/content/dam/ltagov/who_we_are/statistics_and_publications/statistics/pdf/MVP01-4_MVP_by_fuel.pdf
[2] LTA Car Cost Update – March 2026 — https://onemotoring.lta.gov.sg/content/dam/onemotoring/Buying/Car_Cost_Update/M032-Car_Cost_Update.pdf
[3] LTA / NEA — Revised VES and EEAI Extension (September 2025), via Malay Mail: https://www.malaymail.com/news/singapore/2025/09/08/ev-rebates-to-be-extended-until-2027-in-singapore-but-hybrids-lose-incentives/190462
[4] Complete Guide to EV Charging Costs in Singapore – Dollars and Sense (2025) — https://dollarsandsense.sg/complete-guide-to-ev-charging-costs-in-singapore/
[5] SP Group Electricity Tariff Information – Q2 2026 — https://www.spgroup.com.sg/our-services/utilities/tariff-information
[6] Singapore Unleaded 92 Octane Petrol Prices – Statista / Motorist SG (2024) — https://www.statista.com/statistics/1295532/singapore-unleaded-92-octane-prices-by-company/
[7] LTA Annual Mileage for Private Motor Vehicles – DataMall — https://datamall.lta.gov.sg/content/dam/datamall/datasets/Facts_Figures/Vehicle%20Population/Annual%20Mileage%20for%20Private%20Motor%20Vehicle.zip
[8] Hyundai IONIQ 5 – First Singapore-Assembled EV (SoyaCincau, January 2023) — https://soyacincau.com/2023/01/11/hyundai-ioniq-5-will-be-the-first-ev-assembled-in-singapore/
[9] Hyundai Launches Made-in-Singapore IONIQ 6 (Motorist SG, July 2024) — https://www.motorist.sg/article/3229/the-made-in-singapore-hyundai-ioniq-6-is-now-available-prices-start-at-s-192-150-including-coe
[10] HardwareZone / The Straits Times — EVs make up 57.6% of new car registrations in Q1 2026 (April 2026): https://www.hardwarezone.com.sg/lifestyle/cars/ev-make-up-60-percent-new-car-registration-singapore-q1-2026
[11] Best & Cheapest Electric Cars in Singapore – SingSaver (2026) — https://www.singsaver.com.sg/car-insurance/blog/best-cheapest-electric-cars-singapore
