Eddison Lee On Electric Heavy Vehicles Adoption In Singapore

Owners of heavy goods vehicles and buses in Singapore will be given incentives to switch to electric models as part of its government’s push to cut carbon emissions by the transport sector.

Singapore’s authorities will provide partial funding for the installation of related charging infrastructure via a new grant, the country’s Prime Minister Lawrence Wong announced in his Budget speech 2025.

To partly compensate for the loss of fuel excise duties, the road tax payable for electric heavy vehicles and electric buses will be raised in tandem. A flat tax component that is already in place for electric cars and light goods vehicles will be introduced for electric heavy goods vehicles and buses.

Eddison Lee, principal, energy and natural resources at Oliver Wyman, shared with The Straits Times that higher road tax for electric heavy vehicles should not materially impact adoption.

“Commercial fleet vehicles tend to have higher mileage, thus switching to EVs will be beneficial as fuel cost savings will still outweigh the higher road taxes,” he said.

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