Factors that May Impede Adoption of Electric Vehicles

Miss Cheryl Chan Wei Ling asked the Minister for Transport (a) whether the supply of certificates of entitlement will be a key determinant to accelerate transition to electric vehicles over the next few years; (b) whether high interest rates, supply chain issues and other costs will derail the plan of phasing out internal combustion engine vehicles by 2040; and (c) if so, what alternate plans will be considered to mitigate the impact.

Mr Speaker, COEs are not differentiated by propellant type, so we do not expect COE supply to be a key determinant of the pace of vehicle electrification.

Despite cost pressures on vehicles in recent times, such as supply chain issues and higher interest rates, Electric Vehicle (EV) adoption in Singapore has grown strongly this year. For example, electric car registrations in 2022 so far, have exceeded 10% of all new car registrations. That is almost triple the rate last year.

The Government also continues to support EV adoption by providing tax rebates, accelerating the deployment of EV charging points and strengthening regulations to ensure the safety and reliability of our EV charging network. In fact, in this Sitting later, we will be moving an EV Charging Bill.

LTA will continue to monitor the overall EV adoption trends and take appropriate measures as necessary to support our overall vision for cleaner energy vehicles in Singapore.