GUANGZHOU, CHINA – NOVEMBER 24: ZEEKR (Photo by Stringer/Anadolu via Getty Images)
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More Chinese EV brands are being launched in Singapore as the government drives adoption of electric vehicles by expanding incentives and charging stations.
last week, auspiciousIts luxury electric vehicle brand Zeekr has made its debut in Singapore with the launch of the Zeekr X, a premium SUV with a starting price of SGD 199,999 (USD 150,604).
Just a week ago, Xpeng Motors Announced its entry into the Singapore market and opened a pop-up showroom to provide visitors with the opportunity to test drive the Xpeng G6 electric SUV. Prices start at S$209,999 for the standard model and S$224,999 for the long-range model.
“As Singapore continues to promote the transformation of electric vehicles, we believe that people’s desire for electric vehicles is not just a means of transportation, but to provide a high-quality driving experience and convenience, thereby enhancing urban life,” said Mars Chen, Vice President of Singapore .
“We are optimistic that our launch will expand our footprint in Southeast Asia and beyond,” Chen said.
As the world’s largest electric vehicle sales country, Chinese electric vehicles are no stranger to Singapore. BYDThe company that toppled Tesla has been in the city-state since 2014.
We note that the city-state’s EV charging infrastructure needs to expand rapidly over the medium term to support continued EV adoption.
BMI, a Fitch Solutions Company
BYD’s 30 electric taxis first hit the roads in Singapore in December 2014, and the company has since launched a range of electric vehicles, from trucks and buses to passenger cars such as the e6 and Seal.
Other Chinese carmakers such as GAC Aian and Chery have also launched electric vehicle models in Singapore.
“I think they are trying to go global and Singapore is just one of the countries they want to expand into. Singapore is also very developed and its cityscape is very suitable for electric vehicles,” Maybank Securities analyst Jarick Seet told CNBC.
“With the government’s push for electric vehicles, it is ideal for electric vehicle manufacturers to enter Singapore despite the small size of the market,” Seet said.
Singapore wants to phase out diesel-powered cars and taxis from 2025 and internal combustion engine vehicles from 2030 as part of a government push By 2040, all vehicles run on clean energy.
first half of this year, About a third of new cars sold The proportion of electric vehicles in Singapore is almost double from about 18% in 2023, according to the Ministry of Transport.
Electric vehicle adoption is increasing significantly, with incentives and emission schemes helping to reduce the upfront cost of owning an electric vehicle by up to S$40,000 by 2024, Transport Minister Xu Fangda said in July.
The availability of charging infrastructure has long been a challenge, but Chee said the installation of charging infrastructure is “on track” to support more electric vehicles, Target number of charging stations to reach 60,000 by 2030. As of now, more than 7,100 electric vehicle charging stations have been installed across the country.
Singapore’s push
To maintain the momentum of EV adoption, Singapore in September extended its EV Early Adoption Incentive Scheme by two years to 2025.
Under the scheme, newly registered BEVs and taxis will receive a 45% rebate on the additional registration fee (a tax collected when the vehicle is registered), capped at 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.
Fitch Solutions firm BMI said the extension of electric vehicle subsidies and local assembly of Hyundai’s Ioniq electric vehicle will drive the development of Singapore’s passenger electric vehicle market in 2024.
“We note that the city’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.
“Having said that, we note that Singapore’s well-developed public transport and micro-mobility solutions, as well as Singapore’s high vehicle ownership costs, will limit the potential size of the market,” the analysts added.
BMI predicts that passenger electric vehicle sales in Singapore will increase by 73.7% annually in 2024, of which plug-in hybrid electric vehicle sales will increase by 53.4% and battery electric vehicle sales will increase by 74.7%.
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