China EVs set to gain market share in Singapore after extension of rebates
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BYD already surpassed Toyota Motor as Singapore’s top-selling car brand in 2024, with more Chinese EV makers launching here.
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SINGAPORE - Chinese automakers like BYD look set to tighten their grip on Singapore’s market, after the city-state extended electric vehicle (EV) incentives for at least another 12 months.
Singapore tightened its vehicular emissions scheme on Sept 8, extending it until 2027, with rebates limited to fully electric cars, while more polluting vehicles will face higher surcharges. A separate EV early adoption incentive was extended until December 2026, though at half its previous cap, before being scrapped entirely.
The moves are part of Singapore’s plan to phase out fossil fuel-powered vehicles by 2040 and may entice consumers to buy more EVs.
In the first quarter of 2025, EVs accounted for about 40 per cent of the more than 10,800 new cars sold, according to the Land Transport Authority. BYD already surpassed Toyota Motor as Singapore’s top-selling car brand in 2024.
Competitive pricing, along with government incentives, are boosting the success of Chinese EV makers in Singapore, according to Associate Professor Michael Li from Nanyang Technological University.
Chinese car brands are increasingly attractive to buyers because they often come loaded with advanced features such as assisted driving systems, connectivity functions and in-car tech at prices that undercut many Western and Japanese rivals.
Associate Professor Walter Theseira from the Singapore University of Social Sciences said: “This is something the mass-market Japanese and Korean carmakers have been lagging on.”
Squeezed by fierce competition at home, China’s automakers are stepping up their push overseas. In Singapore, that translates into more aggressive deals for consumers, said Mr Neo Tiam Ting, president of the Singapore Vehicle Traders Association.
More EV makers from the world’s biggest automobile market are also launching in Singapore. Jiangxi Jiangling Group New Energy Vehicle – also known as JMEV – debuted its Elight EV sedan in July, while Nio said it will begin selling its Firefly compact EV in the first quarter of 2026.
Digital marketing specialist Irman Karim said his family was initially sceptical about China products. That changed as the reputation of Chinese EVs improved in Singapore and abroad, he said.
“People are buying Chinese EVs probably after realising that China products are comparable with those from Japan, EU and US automakers,” he added. BLOOMBERG
