Singapore sees an increase in Chinese EV makers as the city-state promotes adoption with incentives and more charging points.

• In Singapore, the latest Chinese electric vehicle (EV) brands to be launched are Zeekr, which is owned by Geely, and Xpeng.
• In the first half of this year, approximately one out of every three new cars sold in Singapore was an electric vehicle (EV), which is nearly double the projected 2023 figure of around 18%, as stated by the Ministry of Transport.
• BMI analysts stated that the city state's EV charging infrastructure must expand quickly in the medium term to sustain EV adoption.

The Singapore government is encouraging EV adoption by offering extended incentives and charging points, resulting in an increase in the number of Chinese electric vehicle brands launching in the country.

The Zeekr X, a luxury SUV from -owned brand Zeekr, was launched in the city-state last week with a starting price of 199,999 Singapore dollars ($150,604).

Last week, announced its entry into the Singapore market with a pop-up showroom, allowing visitors to test drive the Xpeng G6 electric SUV. Prices for the standard model start at SG$209,999, while the longer range version costs SG$224,999.

Zeekr's vice president, Mars Chen, stated that as Singapore advances its EV transition, there is a growing demand for EVs that provide more than just transportation, but also offer a premium driving experience and urban living conveniences, following the brand's successful launch in the country last week.

Chen stated that our launch has the potential to expand our presence in Southeast Asia and beyond, making us optimistic about the future.

Since 2014, the world's largest EV seller, which surpassed Tesla, has been present in Singapore.

In December 2014, BYD launched its fleet of 30 electric taxis in Singapore and later introduced a variety of EVs, including trucks, buses, and passenger cars like the e6 and Seal.

In addition to BYD, other Chinese automakers such as GAC Aion and Chery have also launched EV models in Singapore.

Maybank Securities analyst Jarick Seet stated that he believes the company is attempting to expand globally, with Singapore being one of the countries they are targeting. Additionally, Seet noted that Singapore's highly developed urban landscape makes it an ideal location for electric vehicles.

Seet believes that the government's promotion of EVs provides an opportunity for EV companies to enter the Singapore market, despite its limited size.

The government of Singapore aims to eliminate diesel-powered cars and taxis by 2025 and internal combustion engine vehicles by 2030, in a bid to transition all vehicles to cleaner energy sources by 2040.

In the first half of this year, approximately one out of every three new cars sold in Singapore was an electric vehicle (EV), which is nearly double the projected 2023 figure of around 18%, as stated by the Ministry of Transport.

Incentives and an emissions scheme have helped lower the upfront costs of owning an EV by up to SG$40,000 in 2024, as stated by Minister of Transport Chee Hong Tat in July.

The installation of charging infrastructure is progressing according to plan, with a goal of 60,000 charging points by 2030. Currently, over 7,100 EV charging points have been installed nationwide.

Singapore's push

Singapore prolonged the EV Early Adoption Incentive scheme by two years until 2025 to maintain the momentum of EV adoption.

Newly registered electric cars and taxis will receive a 45% rebate on the additional registration fee, which is a tax levied on vehicle registration, up to a maximum of SG$15,000.

Those who register a car or taxi with lower emissions will receive a rebate to offset their ARF.

The local assembly of Hyundai Ioniq EVs and the extended EV subsidies will increase the popularity of the passenger EV segment in Singapore by 2024, according to BMI, a Fitch Solutions company.

BMI analysts stated in a June report that the city state's EV charging infrastructure must expand quickly in the medium term to sustain EV adoption.

The analysts pointed out that the well-developed public transportation and micromobility solutions, as well as the high cost of vehicle ownership in Singapore, will limit the market's potential size.

In 2024, Singapore's passenger EV sales are predicted to increase by 73.7% year over year, with plug-in hybrid EV sales increasing by 53.4% and battery EV sales by 74.7%, according to BMI.