Cash incentive for lighter electric heavy goods vehicles reduced to $15,000 from Sept 3
Zero-emission heavy vehicles with weight rating above 7,000kg will still qualify for the $40,000 incentive
The Singapore government has reduced the cash incentive for businesses switching to electric heavy goods vehicles and buses from $40,000 to $15,000 from September 3. This change affects vehicles weighing over 3,500kg and up to 7,000kg, which includes commercial delivery trucks such as the BYD T35 and Mitsubishi Fuso eCanter. The Land Transport Authority (LTA) cited the increasing availability of electric models and the narrowing price gap with diesel-powered vehicles as reasons for the reduction.
Electric heavy vehicles have seen accelerated adoption since the scheme's introduction in January, with electric vehicles accounting for 55% of new lighter heavy vehicle registrations in July, up from 30% in the same month. As of July 31, there were 8,777 electric vehicles, making up 5.5% of Singapore's commercial vehicles and buses.
The reduced $15,000 incentive applies to these vehicles registered using certificates of entitlement (COEs) obtained from the September 2026 bidding exercise onwards, disbursed in three equal annual instalments. Zero-emission heavy vehicles above 7,000kg will continue to qualify for the $40,000 incentive. The scheme runs until December 31, 2028.
Ryan Woon of EcoSwift noted that the reduced incentive may lead some businesses to reconsider their fleet refreshment plans, but expects lower COE prices to mitigate the impact. However, the cut in incentive has drawn criticism, with the Singapore Logistics Association chairman Dave Ng calling for public consultation, describing the timing as unfavorable as businesses face high diesel prices and elevated costs due to geopolitical tensions.
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