In the short run, not so much as the ramp-up of electric vehicles in Singapore will take a while and most individuals will continue to own OEM car manufacturer cars and will continue to own their cars until the most valuable part of Singapore car ownership fully depreciates - COE. However, when we start to see larger amounts of electric vehicles pop-up in the market (% of EV) pass a threshold it might pose some issues for Vicom's future. However, if the management and organisation can execute and adapt to the rise of electric vehicles, they might be able to adapt to the rising trend.
Looking at the latest annual report from Vicom, they have mentioned the word "Electrical Vehicles" three times and have stated the following:
"With the Government’s recent unveiling of its Green Plan 2030 that requires all new car registrations to be cleaner- energy models from 2030, it has become imperative for VICOM to keep track of the development of electrical vehicles (EVs) inspection and testing."
and
"To give its inspectors a head start, Management has had, in 2020, inserted a new “New Vehicle Propellants (Electrical Vehicle)” module into the current training syllabi for newly joined vehicle inspectors. This module will also be rolled out to existing inspectors using the online training platform."
This might be an indication that they understand the ramifications of the rise of EV but might also be a few temporary measures to appease investors who see this as a rising trend.
To conclude, I think Singapore is a small enough country that Vicom can continue to be the dominant inspection and testing service provider but they will need to show that they can adapt to the rising trend of EVs.
In the short run, not so much as the ramp-up of electric vehicles in Singapore will take a while and most individuals will continue to own OEM car manufacturer cars and will continue to own their cars until the most valuable part of Singapore car ownership fully depreciates - COE. However, when we start to see larger amounts of electric vehicles pop-up in the market (% of EV) pass a threshold it might pose some issues for Vicom's future. However, if the management and organisation can execute and adapt to the rise of electric vehicles, they might be able to adapt to the rising trend.
Looking at the latest annual report from Vicom, they have mentioned the word "Electrical Vehicles" three times and have stated the following:
"With the Government’s recent unveiling of its Green Plan 2030 that requires all new car registrations to be cleaner- energy models from 2030, it has become imperative for VICOM to keep track of the development of electrical vehicles (EVs) inspection and testing."
and
"To give its inspectors a head start, Management has had, in 2020, inserted a new “New Vehicle Propellants (Electrical Vehicle)” module into the current training syllabi for newly joined vehicle inspectors. This module will also be rolled out to existing inspectors using the online training platform."
This might be an indication that they understand the ramifications of the rise of EV but might also be a few temporary measures to appease investors who see this as a rising trend.
To conclude, I think Singapore is a small enough country that Vicom can continue to be the dominant inspection and testing service provider but they will need to show that they can adapt to the rising trend of EVs.