How Much Does It Cost To Own an Electric Vehicle in Singapore?

This was originally posted on Planner Bee.

With the certificate of entitlement (COE) prices constantly increasing, it’s becoming more challenging to be a car owner in Singapore. Nonetheless, many still aspire to be a car owner, and some are looking towards Electric Vehicles (EVs) for sustainability reasons.

Singapore, for one thing, has targeted net zero emissions by 2050. However, how feasible is it to own an electric vehicle in Singapore? Read on to find out all about the cost of owning an EV in Singapore.

What Are The Types of Electric Vehicles Available in Singapore?

In Singapore, there are three types of EVs available:

• Hybrid Electric Vehicles
• Plug-in Hybrid Electric Vehicles
• Fully Electric Vehicles

Plug-in hybrids are the most common type of EVs. This type can be recharged from any external electricity source, including charging stations or home charging packs.

How Much Do Electric Vehicles Cost in Singapore?

Compared to Internal Combustion Engine (ICE) vehicles, EVs tend to be more costly because of the cost of development and materials needed to build an electric car, as well as the basic economies of scale.

Typically, the amount that you have to fork out for an EV will be higher than an ICE vehicle, though the exact price would ultimately depend on the model and brand you pick. Although EVs are expensive, you can qualify for up to S$45,000 in rebates.

The estimated prices* of EVs in Singapore are as follows:

*Prices are taken from listings on SG Car Mart, and may vary from time to time.

Road Tax

While the road tax for EVs used to be more expensive than ICE cars, road tax for mass-market electric cars have been lowered since last year.

For instance, Hyundai Kona Electric has seen its annual road tax decrease from about S$1,400 to S$1,100, and that of a Tesla Model 3 decreased from S$2,300 to S$1,500.

Certificate of Entitlement

According to SG Car Mart, the current COE prices range from approximately S$96,501 (Cat A) and S$118,501 (Cat B), as of April 2023. The COE will last you for ten years if you purchase a brand new EV.

Find out more about COEs in our crash course here.

Car Insurance

Currently, only 4 insurance providers provide coverage for EVs.

The actual cost of your car insurance would depend on factors such as your:

• Age and gender
• Occupation
• Type of car, car model, age of car, and car usage
• Marital status
• Claims history and No Claims Discount (NCD)
• Driving experience
• Certificate of Merit (COM) discount

Unsure of how much your premiums will cost? Get a personalised quote here.

Where Do I Charge My Electric Vehicle?

With most cars on the roads still being ICE vehicles, the number of charging stations available in Singapore is still quite elusive. Nonetheless, the Singapore government intends to gradually increase the number of charging stations in Singapore to 60,000 by the year 2030. Additionally, all 2,000 HDB carparks in Singapore will have at least three charging points ready by 2025.

Currently, there are around 3,600 charging points – and each station can only charge one car at any given time.

Furthermore, the MyTransport.sg app by Land Transport Authority (LTA) lets you locate over 800 public charging points at more than 200 locations in Singapore. You can even filter by charging types, price and charging providers.

Read more: Guide to Car Sharing Options in Singapore

What Are The Incentives For Purchasing An Electric Car?

To encourage the adoption of EVs, the government has introduced several incentives, such as:

• Revision of the road tax bands – from 1 Jan 2022, taxes are to be comparable to an ICE vehicle
• Adjustment of the Additional Registration Fee (ARF) floor from S$5,000 to zero for EVs – from Jan 2022 to Dec 2023, tax paid when registering a vehicle will be calculated based on a percentage of a vehicle’s Open Market Value
• Vehicular Emissions Scheme (VES) rebate – Deduct S$10,000 to S$20,000 from your costs if you qualify for this.

To make the switch to an EV or not?

While an EV is not currently the most affordable option, there are benefits to using one. Additionally, Singapore’s vision is to electrify the vehicle popular for a more sustainable land transport system, and aims to phase out ICE vehicles from the population by 2040. As a driver, consider making the switch to an EV sooner rather than later – before the demand for EV gets even more overwhelming, which could drive prices up even further.

Of course, do consider whether you can afford an EV before taking the plunge. If you’re not sure whether an EV is the correct option for you at the moment, feel free to drop us a note at [email protected], and we’d be more than happy to chat and advise accordingly!

Read more: Owning vs Renting a Car in Singapore: A Cost Breakdown