Electric vehicles (EVs) are becoming a major part of Singapore’s car market, with nearly 4 in every 10 new cars sold in the first quarter of 2025 being fully electric. According to data released by the Land Transport Authority on April 16, a total of 4,383 EVs were registered between January and March—making up 40.2% of all new car registrations in that period.
This is a significant jump from previous years. In 2024, EVs made up 33.6% of all new car registrations, which was already a big increase from the 18.1% recorded in 2023. The strong start to 2025 shows that more drivers in Singapore are now choosing electric over petrol-powered cars.
The rise in EV numbers comes as overall car registrations also boosted. In the first three months of 2025, 10,883 new cars were registered—35.2% more than in the same period in 2024. This increase is mainly due to more certificates of entitlement (COEs) being made available, making it easier for people to buy new vehicles.
Chinese brands dominate EV market
Among all the EV brands, Chinese manufacturer BYD leads the way by a large margin. BYD registered 2,183 cars in Q1, meaning it now makes up 20% of all new car sales in Singapore—both electric and petrol. This puts BYD far ahead of its closest EV competitors. Tesla registered 413 units, while BMW followed closely with 361 units.
In total, 34 car brands registered EVs during the first quarter of 2025—the same number as in 2024. Another fast-rising Chinese brand, Xpeng, which only entered the Singapore market in August 2024, jumped from seventh place to fourth with 190 units sold. GAC, also from China, climbed from ninth to sixth place. Between these two Chinese firms is Mercedes-Benz, which moved up one position to fifth.
Experts believe these shifts result from a strong push by car dealers and ongoing government support to promote electric vehicles.
Incentives help drive EV sales
Electric cars continue to benefit from attractive government incentives. You can save up to US$40,000 in tax breaks when you buy an EV. The most efficient petrol-hybrid cars qualify for only US$5,000 rebates. On the other hand, vehicles with high emissions may face penalties of up to US$20,000 under the Vehicular Emissions Scheme, which strongly supports the sale of EVs and hybrids.
These rebates are expected to last until December 31, 2025. EVs with power outputs up to 110kW fall under Category A COEs, which are cheaper, while more powerful EVs use the more costly Category B COEs. In the most recent bidding round, Category A COEs cost US$97,724, while Category B COEs cost US$117,889.
According to Vincent Ng, an automotive consultant with Vincar Group, distributor of GAC Aion, recent price reductions in Category B EVs are narrowing the price gap with Category A models. He described the current situation as a “price war” that benefits buyers, especially those considering mass-market EVs.
For example, the BYD Atto 3 is priced at US$157,888 with COE after rebates and dealer financing terms. In comparison, the Toyota Yaris Cross, a petrol-hybrid, costs US$180,888 even after rebates. Mr Ng estimated that around 45% of the EVs sold in Q1 fell under the cheaper Category A, suggesting that this segment could soon see EVs make up more than half of all sales.
EV growth still faces some challenges
While more drivers are choosing electric, not everyone is ready to switch. Associate Professor Walter Theseira from the Singapore University of Social Sciences said that some drivers are still unsure about the reliability of newer Chinese EV models compared to traditional petrol cars.
To build confidence, he believes Singapore needs another Chinese brand to sell in large volumes besides BYD. So far, Japanese mass-market car makers have not offered competitive EV options.
Still, experts like Associate Professor Alberto Salvo from the National University of Singapore view the record EV numbers as a positive sign. He pointed out that switching to EVs helps reduce carbon emissions by half. Since Singapore generates electricity mostly from natural gas, using an EV remains much cleaner than running a petrol car.
While Singapore still lags behind countries like Norway—where 88.9% of new cars in 2024 were EVs—Prof Salvo believes the city-state can become “the Norway of the tropics”. He says Singapore has the right systems and should keep supporting EV adoption, including expanding the charging network to make it easier for everyone to switch.
