GUANGZHOU, CHINA – NOVEMBER 24: The ZEEKR X is displayed during the 2023 Guangzhou International Automobile Exhibition at the China Import and Export Fair Complex on November 24, 2023 in Guangzhou, Guangdong province, China. (Photo by Stringer/Anadolu via Getty Images)
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More Chinese brands are launching electric vehicles in Singapore as the government seeks to boost EV adoption through expanded incentives and charging points.
Last week, jellyLuxury electric vehicle brand Zeekr has made its debut in the city-state with the Zeekr X, a luxury SUV priced from S$199,999 (US$150,604).
Just a week ago, XPING MOTORS CO.,LTD Xpeng has announced its entry into the Singapore market with a pop-up showroom, offering visitors the chance to test drive the Xpeng G6 electric SUV. Prices start at S$209,999 for the standard model and S$224,999 for the longer range version.
“As Singapore continues to advance its shift to electric vehicles, we believe there is a desire for electric vehicles that go beyond being just a form of transportation, to offer a premium driving experience with amenities that elevate urban living,” said Mars Chen, vice president of Zeekr, after the brand’s launch in Singapore last week.
“We are optimistic that our launch will expand our presence in Southeast Asia and beyond,” Chen said.
Chinese electric cars are not new to Singapore as it is the world's largest seller of electric cars. BYDTesla, which has ousted Tesla, has been in the city-state since 2014.
We note that the city-state’s electric vehicle charging infrastructure will need to expand rapidly over the medium term to support continued adoption of electric vehicles.
BMI, a Fitch Solutions company
BYD's fleet of 30 electric taxis first took to Singapore roads in December 2014, and the company has since introduced a range of electric vehicles from trucks and buses to passenger cars such as the e6 and Seal.
Other Chinese automakers such as GAC Aion and Chery have also introduced electric vehicle models in Singapore.
“I think they are trying to expand globally and Singapore is just one of the countries they are looking to expand into,” Garrick Sit, an analyst at Maybank Securities, told CNBC. “Singapore is also very developed — the urban landscape makes it ideal for electric vehicles.”
“Combined with the government’s push towards electric vehicles, it is ideal for EV manufacturers to expand in Singapore despite its small market size,” said Sit.
Singapore wants to phase out diesel cars and taxis from 2025 and internal combustion engine vehicles from 2030, as part of the government's push to power all vehicles with clean energy by 2040.
During the first half of this year, about one in three new cars sold in Singapore was an electric vehicle — nearly double the 2023 figure of about 18%, according to the Ministry of Transport.
Electric vehicle adoption has increased significantly, with incentives and an emissions system helping to cut the initial cost of owning an electric car by up to S$40,000 in 2024, Transport Minister Chee Hong Tat said in July.
The availability of charging infrastructure has long been a challenge, but installation is “on track” to support more EVs, with a target of 60,000 charging points by 2030, Chi said. More than 7,100 EV charging points have been installed across the country so far.
Singapore payment
To keep up the momentum of electric vehicle adoption, Singapore in September extended its early adoption incentive scheme for electric vehicles by two years until 2025.
Under the programme, newly registered fully electric cars and taxis will get a 45 per cent discount on the additional registration fee – a levy levied when registering a vehicle – up to a maximum of S$15,000.
In addition, people who register a car or taxi with cleaner emissions will be eligible for an emissions rebate which will be used to offset the ARF of the car or taxi.
Expanded electric vehicle subsidies and local assembly of Hyundai Ioniq EVs will boost Singapore's passenger electric vehicle segment by 2024, said BMI, a Fitch Solutions company.
“We note that the city-state’s EV charging infrastructure will need to expand rapidly over the medium term to support continued EV adoption,” BMI analysts said in a report in June.
“However, we note that advanced public transport and micromobility solutions, coupled with the high cost of vehicle ownership in Singapore, will all limit the potential size of the market,” the analysts added.
BMI expects passenger electric vehicle sales in Singapore to grow 73.7% year-on-year in 2024, with plug-in hybrid electric vehicle sales up 53.4% and battery electric vehicle sales up 74.7%.
