Singapore Announces Extension Of EV Incentives Until Dec, 2025

In an effort to further encourage the adoption of clean energy vehicles, Singapore will reduce rebates for hybrid vehicles while maintaining the current incentives for all cleaner energy vehicles through December 31, 2025.
Purchasers of electric vehicles and taxis are eligible for a 45 percent reduction on the Additional Registration Fee (up to S$15,000) under the EV Early Adoption Initiative (EEAI).
The initiative, which was first introduced in 2021 for a two-year period with a cap of S$20,000, was later extended to end-2024 with a lower cap of S$15,000, as announced by the Land Transport Authority (LTA) in a joint release with the National Environment Agency (NEA).
Purchasers who buy newly registered cars and taxis under the Vehicular Emissions Scheme (VES) may be eligible for a refund on the Additional Registration Fee (ARF), subject to any minimum additional registration ARF that may apply, or they may be charged an additional fee depending on the VES category of the vehicle.

“With the revised VES rebates in effect and the continuation of the EEAI, buyers will continue to enjoy combined cost savings of up to  S$ 40,000 off the ARF for electric cars in the said period. Most electric car models will enjoy the same level of rebates as today,” read the joint release.

It was also revealed that since 2021, about 20,000 EVs have benefitted from the VES rebates and/or EEAI. “Both the EEAI and the VES work in tandem to reduce the cost gap between cleaner energy cars (including electric and hybrid cars) and ICE cars, and have helped to boost adoption of cleaner energy cars. Cleaner energy car registration has increased to around 80% of all new car registrations between January 2024 and August 2024,” the LTA and NEA wrote.