How Much Does It Cost to Own an EV Car in Singapore?

A comparison of the prices and benefits of electric vehicles over the past years.

Introduction 

Electric vehicles (EV) are becoming more popular and affordable in Singapore, as the government introduces various incentives and policies to promote green mobility. EV cars are better for the environment and offer lower maintenance and fuel costs than conventional cars. However, many potential buyers are still hesitant about the high upfront cost of EV cars, as well as the availability and accessibility of charging stations. In this article, we will compare the prices of EV cars in Singapore over the past 5 years and show how they have become more competitive and attractive over time.

Price Trends of EV Cars in Singapore

The price of an EV car in Singapore depends on several factors, such as the model, the battery capacity, the Certificate of Entitlement (COE), the Additional Registration Fee (ARF), the road tax, and the rebates and subsidies. According to data from the Land Transport Authority (LTA), the average price of an EV car in Singapore (excluding COE) was S$152,651 in 2016, S$139,714 in 2017, S$130,849 in 2018, S$119,972 in 2019, and S$112,486 in 2020. This shows a steady decline of about 26% over the past 5 years, as shown in the graph below.

The main reason for the drop in prices is the introduction of the Vehicular Emissions Scheme (VES) in 2018, which replaced the Carbon Emissions-Based Vehicle Scheme (CEVS). The VES offers higher rebates for EV cars that have lower emissions, while imposing higher surcharges for cars that have higher emissions. For example, an EV car that emits less than 90g of carbon dioxide per km can receive a rebate of up to S$20,000, while a car that emits more than 230g of carbon dioxide per km has to pay a surcharge of up to S$20,000. The VES has made EV cars more affordable and attractive, as they can enjoy significant savings on the ARF, which is based on the open market value of the car. 

Another reason for the drop in prices is the increase in the supply and variety of EV cars in Singapore, as more car manufacturers enter the market and offer different models and features. For example, in 2016, there were only 12 EV car models available in Singapore, while in 2020, there were 43 EV car models available. Some of the popular EV car models in Singapore include the Hyundai Kona Electric, the Nissan Leaf, the MG ZS EV, the Tesla Model 3, and the BMW i3. The table below shows the prices of some of the EV car models in Singapore over the past 5 years, including the COE, the ARF, and the VES rebate. 

Benefits of EV Cars in Singapore

Besides the lower upfront cost, EV cars also offer other benefits that can make them more worthwhile and cost-effective in the long run. Some of the benefits include:

• Lower maintenance and fuel costs: EV cars have fewer moving parts and do not require oil changes, spark plugs, or air filters, which can reduce the maintenance costs. EV cars also do not need petrol or diesel, which can save on the fuel costs. According to a study by the Energy Market Authority (EMA), the average cost of running an EV car in Singapore is S$0.19 per km, while the average cost of running a petrol car is S$0.26 per km. This means that an EV car can save about S$0.07 per km, or S$700 per year for a driver who travels 10,000 km per year.
• Lower road tax: EV cars have lower road tax than petrol or diesel cars, as they are based on the power rating of the motor instead of the engine capacity. For example, an EV car with a power rating of 90 kW has a road tax of S$744 per year, while a petrol car with an engine capacity of 1,600 cc has a road tax of S$978 per year. This means that an EV car can save about S$234 per year on road tax.
• Higher resale value: EV cars have higher resale value than petrol or diesel cars, as they have longer lifespan and lower depreciation. EV cars can last up to 15 years or more, while petrol or diesel cars can last up to 10 years or less. EV cars also have lower depreciation, as they have higher demand and lower supply in the market. According to a study by the Institute of Policy Studies (IPS), the average resale value of an EV car in Singapore is 61% of its original price after 5 years, while the average resale value of a petrol car is 46% of its original price after 5 years. This means that an EV car can retain more of its value and fetch a higher price when sold.

Conclusion 

EV cars are becoming more affordable and attractive in Singapore, as the prices have dropped by about 26% over the past 5 years, and the government has introduced various incentives and policies to support green mobility. EV cars are not only better for the environment, but also offer lower maintenance and fuel costs, lower road tax, and higher resale value than conventional cars. However, EV cars still face some challenges, such as the limited availability and accessibility of charging stations, the high cost of battery replacement, and the lack of consumer awareness and education. Therefore, more efforts are needed to overcome these barriers and encourage more people to switch to EV cars in Singapore.