Singapore is poised to lead South-east Asia's electric vehicle (EV) revolution, with a projection that by 2040, 80% of all passenger vehicles in the country will be electric.
This makes Singapore the standout market in the region, with a significantly higher adoption rate compared to its neighbours, where the regional average is expected to reach just 24%. Thailand and Vietnam are forecast to trail behind at 41% and 31% respectively, highlighting Singapore’s robust position in the green mobility sector.
Singapore’s adoption of EVs is already outpacing other nations in the region. By 2023, EVs made up 19% of total vehicle sales in the country, the highest in South-east Asia. Notably, in the first seven months of 2024, EVs represented 32.1% of new car registrations, showcasing strong growth momentum.
Singapore’s lead is further underpinned by a dense charging network, with one public charging station for every three EVs—far ahead of Thailand's ratio of one charger for every 16 EVs and Malaysia's one for every 38.
The rapid growth of the EV market in Singapore is supported by government initiatives aimed at promoting electric mobility and a greener future. The Electric Vehicles Charging Act, introduced in December 2023, has laid the regulatory groundwork for a reliable and accessible EV charging network. It ensures that all chargers adhere to Land Transport Authority (LTA) safety standards and introduces a new licensing regime for charging operators to maintain service standards and safety.
These efforts will facilitate the deployment of 60,000 EV charging points across Singapore by 2030, with 40,000 set for public car parks and 20,000 for private premises.
Additionally, the Certificate of Entitlement (COE) system in Singapore plays a significant role in accelerating EV adoption. By encouraging the turnover of vehicles every ten years, the system indirectly fosters the uptake of newer, greener technologies like electric vehicles. Coupled with policies aimed at ending the registration of new diesel-powered cars and taxis from 2025 onwards, Singapore’s path towards sustainable transport is clearly defined.
A key factor driving this EV expansion is the steady decline in battery prices. Batteries are the most expensive component of an electric vehicle, but BloombergNEF notes that battery prices have fallen by 90% from 2010 to 2023, and they are expected to drop further by 17% for every doubling of battery production. This trend is making EVs more price-competitive with traditional internal combustion engine vehicles, thus lowering barriers to entry for many prospective EV owners.
Looking at the broader South-east Asian context, the market for passenger EVs continues to expand, fuelled by supportive policies and the involvement of major Chinese automakers. In Thailand—the largest EV market in the region—EV sales quadrupled in 2023 to 86,383 units. Singapore, while smaller in absolute numbers, recorded 5,734 EV sales in the same year, reflecting a significant adoption rate relative to its population size.
Government strategies, such as mandatory EV charging provisions for new buildings and incentives like the EV Common Charger Grant for private residences, are further catalysing the growth of EV infrastructure in Singapore. By the end of 2023, approximately one-third of Housing and Development Board (HDB) car parks were fitted with EV charging points, with a target for all HDB towns to be EV-ready by 2025. The government is also working towards fostering a culture of responsible sharing of charging facilities as part of its broader aim of a seamless and accessible charging experience.
Against this backdrop, EuroSports Global Ltd (SGX: 5G1) is aggressively entering the market with the launch of the Scorpio X1 EV bike. With approval from the Land Transport Authority (LTA), this electric motorcycle aims to capture the growing demand for EVs in Singapore.
Given the country's favourable regulatory environment, expanding infrastructure, and consumers' increasing shift towards electric mobility, the Scorpio X1 could see significant growth in the coming years, marking a promising chapter for EuroSports Global Ltd in the electric mobility sector.
The content of the article originated from The Straits Time Singapore - Singapore will have largest share of passenger EVs in S-E Asia by 2024: Report.
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