Cash incentive for lighter electric heavy goods vehicles reduced to $15,000 from Sept 3
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Adoption of electric heavy vehicles has accelerated since the scheme was introduced in January, the LTA said.
PHOTO: LIANHE ZAOBAO
- The cash incentive for electric lighter heavy goods vehicles will be reduced from $40,000 to $15,000 starting September 3, 2026, due to increased electric vehicle availability and narrowing price gaps.
- Electric lighter heavy goods vehicles made up 55% of new registrations in July 2026, with electric vehicles constituting 5.5% of the total commercial vehicle fleet in Singapore.
- The incentive cut applies to vehicles weighing 3,500kg to 7,000kg, while heavier vehicles above 7,000kg still receive the $40,000 grant; the scheme runs until December 31, 2028 to support decarbonisation goals.
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SINGAPORE – The cash incentive to encourage business owners to switch to electric options for lighter heavy goods vehicles and buses will be cut from $40,000 to $15,000 from Sept 3.
The revision applies to vehicles with a maximum laden weight of more than 3,500kg and up to 7,000kg. This category includes commercial delivery trucks such as the BYD T35 and Mitsubishi Fuso eCanter.
The Land Transport Authority (LTA) said on Sept 2 that the reduction under the Heavy Vehicle Zero Emissions Scheme comes amid a growing availability of electric models and a narrowing price gap with conventional diesel-powered equivalents.
Adoption of electric heavy vehicles has accelerated since the scheme was introduced in January, the LTA added.
In July, electric vehicles accounted for 55 per cent of all new lighter heavy vehicle registrations, LTA said. Overall, they made up around 30 per cent of all heavy vehicle registrations that month.
As at July 31, there were 8,777 electric vehicles, making up 5.5 per cent of Singapore’s commercial vehicles and buses. This was up from 7,188, or 4.5 per cent, at the end of 2025.
The reduced $15,000 cash incentive applies to qualified vehicles registered using certificates of entitlement (COEs) obtained from the first September 2026 bidding exercise onwards. The amount will be disbursed in three equal annual instalments, starting at registration.
As for zero-emission heavy vehicles with a weight rating above 7,000kg, they will continue to qualify for the $40,000 incentive. LTA said that for such vehicles, the electric option still costs significantly more than the diesel-powered equivalents.
The scheme will run until Dec 31, 2028. It was announced in March 2025, alongside the Electric Heavy Vehicle Charger Grant, to nudge businesses to go electric and contribute towards Singapore’s decarbonisation goals.
Ryan Woon, chief executive of EcoSwift, a distributor of electric trucks, said the reduced $15,000 incentive will prompt some businesses to reconsider their fleet refreshment plans as the cost of going electric is now higher.
But he expects the change to also lead to lower COE prices in the coming months, helping to soften the overall impact on businesses.
COE prices for commercial vehicles have been rising. In the latest tender exercise on Aug 19, such certificates cost $90,002, compared with $72,190 in 2025, adding to the costs of updating a business fleet.
Singapore Logistics Association chairman Dave Ng said there should have been a public consultation on the reduction in cash incentive for lighter electric heavy goods vehicles.
Describing the timing as “unfavourable”, he said the incentive cut comes at a difficult time for the industry as its members are already facing high diesel prices and elevated business costs amid the Middle East conflict.