GUANGZHOU, CHINA – NOVEMBER 24: A ZEEKR X is on display during the 2023 Guangzhou International Auto Show 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 electric vehicle brands are coming to Singapore as the government pushes for electric vehicle adoption with widespread incentives and charging points.
last week, GeelyProprietary luxury electric vehicle brand Zeekr has debuted in the city-state with the Zeekr X, a premium SUV with a starting price of S$199,999 ($150,604).
Just a week earlier, Xpeng Motors 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 SG$209,999 for the standard model and SG$224,999 for the range-topping version.
“As Singapore continues to move forward with its transition to electric vehicles, we believe there is a desire for electric vehicles that go beyond just being a form of transportation, to offer a premium driving experience with amenities that enhance urban life,” said Mars Chen, vice president of Zeekr, following the launch of the brand in Singapore last week.
“We are optimistic that our launch will increase our footprint across Southeast Asia and beyond,” Chen said.
Chinese EVs are not new to Singapore as the world’s largest EV seller BYDthat dethroned Tesla, has been in the city-state since 2014.
We note that the city-state’s EV charging infrastructure will need to expand rapidly in the medium term to support continued EV adoption.
BMI, a Fitch Solutions company
BYD’s fleet of 30 electric taxis first hit Singapore’s 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 EV models in Singapore.
“I think they’re trying to go global and Singapore is just one of the countries they want to expand to. Singapore is also very developed — the urban landscape makes it ideal for electric cars,” Maybank Securities analyst Jarick told CNBC Seet.
“With the government’s push towards EVs, it is ideal for EV players to expand in Singapore despite the small size of the market,” said Seet.
Singapore wants to phase out diesel cars and taxis from 2025 and internal combustion engine vehicles from 2030 as part of the government’s drive to have all vehicles running on cleaner energy by 2040.
During the first half of this year, about one in three new cars sold in Singapore it was an EV – nearly double the 2023 figure of about 18%, according to the Department of Transport.
EV adoption has increased significantly, with incentives and an emissions scheme helping to reduce the initial cost of ownership of an EV by up to SG$40,000 in 2024; Transport Minister Chee Hong Tat said in July.
The availability of charging infrastructure has long been a challenge, but Chee said the facility is “on track” to support a larger EV population, with target of 60,000 charging points by 2030. Over 7,100 EV charging points have been installed across the country so far.
Singapore’s push
To maintain EV adoption momentum, Singapore in September extended its EV Early Adoption Incentive Program by two years to 2025.
Under the scheme, newly registered all-electric cars and taxis will receive a 45% discount on the additional registration fee – a tax levied when a vehicle is registered – capped at SG$15,000.
In addition, people who register a car or taxi with cleaner emissions will qualify for an emissions credit that will be used to offset the ARF of the car or taxi.
BMI, a Fitch Solutions company, said extensive EV subsidies and local assembly of Hyundai Ioniq EVs will boost the passenger EV segment in Singapore in 2024.
“We note that the city-state’s EV charging infrastructure will need to expand rapidly in the medium term to support continued EV adoption,” BMI analysts said in a June report.
“That said, we note that well-developed public transport and micro-mobility solutions, together with the high cost of vehicle ownership in Singapore, will serve to limit the potential size of the market,” the analysts added.
BMI predicts that passenger EV sales in Singapore will grow by 73.7% year-on-year in 2024, with plug-in hybrid EV sales growing by 53.4% and battery electric sales by 74.7%.
