Greater interest in EVs at showrooms as PARF rebate cuts take effect
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Customers at the BYD showroom in Alexandra Road on the morning of Feb 28.
ST PHOTO: NG SOR LUAN
- PARF rebate cuts significantly raise car ownership costs for petrol-hybrid and ICE cars, encouraging a shift towards greener EV options.
- Car showrooms report increased activity, with brands seeing a rise in footfall and sales post-Budget.
- Category B COE prices are now lower than Category A, a rare occurrence making larger, more powerful EVs attractive to some buyers.
AI generated
SINGAPORE – Car showrooms were abuzz with activity on Feb 28 as potential buyers sought to navigate changes to car ownership costs.
Cuts to the preferential additional registration fee (PARF) rebate
One of those taking the plunge was a 52-year-old who wanted to be known only as Mr Kor, who was among roughly two dozen people at the BYD showroom in Alexandra Road at about 11.30am.
He had just paid a deposit for a brand new BYD Sealion 7 Premium priced at $199,888.
The father of three, who works in education, said: “My current ride is hitting its fifth-year mark, so that’s why I’m here.
“I assessed the market and I think that in the current climate, this is the best price point for me to get in (on EVs). The latest announcement really pushed me to make this decision.”
He had been eyeing the BYD M6 – a seven-seater multi-purpose vehicle that is a Category A model, but ultimately decided on the Sealion 7 Premium, a Category B EV, which he felt was more spacious and competitively priced.
Also, Category B certificates of entitlement (COEs), at $105,001, are currently cheaper than Category A ones,
“It’s quite rare for such a thing to happen, and I figured I should take advantage of it,” said Mr Kor.
This, and the lower PARF rebates, has led to higher traffic in the showroom, said Mr Anthony Teo, the managing director of BYD distributor Sime Motors.
Footfall at BYD’s Alexandra showroom has increased by about 20 per cent since Prime Minister Lawrence Wong announced in his Budget speech on Feb 12 that PARF rebates would be lowered by 45 percentage points, Mr Teo said.
The rebate is meant to encourage the timely renewal of Singapore’s vehicle population. Those who deregister their cars earlier within their 10-year COE span get a higher amount, although the maximum has now been halved to $30,000 from $60,000 previously.
With the price of Category B COEs also dropping below that of Category A, Mr Teo noted that more inquiries have come in, with sales of larger, more powerful cars also increasing in tandem.
Other car showrooms reported similar trends when it came to queries from prospective buyers, with The Straits Times observing a steady stream of car buyers at Performance Motors’ BMW showroom in Alexandra Road, as well as at the showrooms of Chinese EV brands Aion and MG in Leng Kee Road.
Mr Benjamin Neo, the sales manager of Vincar, which distributes Aion cars here, said he observed a 30 per cent to 40 per cent increase in visitors after the Budget announcement.
He said: “The Government has been sending a strong message that it wants to push car buyers towards EV adoption.”
Based on his experience, car buyers are largely still considering Category A COE cars despite the latest price differential.
Prospective car buyers examining EV models at the Aion showroom in Leng Kee Road on Feb 28.
ST PHOTO: NG SOR LUAN
“A Category A EV has about the same space and power as a Category B ICE car, so I don’t think there’s much of an impact.
“However, the road tax for Category B is significantly higher than that of Category A, so that might be a turn-off for some buyers,” he said.
When ST visited the Aion showroom at about 12.30pm, there were already a handful of families speaking to sales staff, with some going on test drives.
One customer, who gave only his initials K.W, said he was looking at the Aion V, a Category A sport utility vehicle, as he felt it would make a good family car.
The 35-year-old administrator, who was with his wife and elderly parents, said recent developments did not factor into his decision, as he was already thinking about getting an EV.
Over at Performance Motors, which has a mix of BMW cars that are ICE models and EVs, the greener option has seen more interest, said sales manager Daniel Kalai, adding that footfall has been “quite healthy”.
Footfall at Performance Motors’ BMW showroom has been “quite healthy”, said sales manager Daniel Kalai, who noted a greater interest in EVs.
ST PHOTO: NG SOR LUAN
Mr Raymond Ng, managing director of Eurokars EV, which distributes MG, said sales are up 50 per cent following the government announcement.
The policy changes over the years will nudge buyers towards EVs, he added, citing examples such as rebates for early adopters, which will eventually be reduced to $20,000 in 2027
“I think the numbers don’t lie. In the past year, there’s been more EV registrations than ICE car ones,
“People understand that EVs are here to stay.”
