Singapore sees higher EV registrations in first quarter as rising petrol prices drive urgency among buyers already considering EVs, experts say

SINGAPORE: Electric vehicles (EVs) accounted for about 58%, or 7,679 of the 13,322 new cars registered in Singapore in the first quarter, according to the Land Transport Authority (LTA), marking the first time EV registrations outnumbered combustion engine and hybrid models. This was a sharp increase from last year’s record-high 45% share of EV registrations.

In terms of EV brands, Chinese automaker BYD led the market with 3,239 units, or nearly one in four new car registrations. Of these, 3,073 were fully electric, while 166 were petrol-electric (plug-in hybrid) models.

While an EY survey in January found charging concerns had dampened buyer interest in purchasing EVs, some industry players said rising fuel prices amid the Middle East war are now pushing buyers already considering EVs to act sooner, Channel News Asia reported.

EV players in Singapore have seen sales surge, with Chinese automaker Dongfeng reporting a jump of up to 80% in March.

However, some industry players noted that the recent revision of the Preferential Additional Registration Fee (PARF) rebate, which affects new car registrations this year, is a key driver of the rising interest in EVs.

In February, the LTA announced that the PARF rebate has been lowered by 45 percentage points.

The PARF rebate is the amount car owners receive when they deregister their vehicle, and it is calculated as a percentage of the Additional Registration Fee (ARF) paid. The ARF itself is based on a car’s Open Market Value (OMV), which is its estimated price before taxes. The rebate is tiered depending on the age of the vehicle when it is deregistered, with newer cars receiving a higher percentage.

With the revision, the gap in PARF rebates between EVs and non-EVs has narrowed.

Dongfeng Singapore founder and CEO Soh Ming told Channel News Asia that this helps level the playing field between EVs and non-EVs. Meanwhile, automotive industry consultant Say Kwee Neng told The Straits Times that with the reduced gap in PARF rebates between EVs and non-EVs, consumers have fewer reasons to stick with petrol engine models. /TISG

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