Shrinking EV incentives, not proposed COE overhaul, drive car buyers to showrooms
The lower EV rebates would mean smaller savings for car buyers in 2027, even if the COE revamp also provides a rebate.
On Oct 10, car showrooms remained busy despite the Land Transport Authority's (LTA) proposal for a major overhaul of the certificate of entitlement (COE) system. Instead of rushing to buy or delaying due to uncertainty over the changes, some car buyers focused on the upcoming rollback of incentives for electric vehicles (EVs) from January 2027.
Bryan Koh, a 39-year-old finance professional, expressed his intention to purchase an EV now to ease transportation for his elderly parents and provide convenience for family outings with his young son. The EEAI, which offers a combined rebate of up to $30,000, is valid until Dec 31, 2026, while the VES will be reduced from Jan 1, 2027, dropping to a maximum of $20,000.
The LTA consulted the public on proposed changes to the COE system, including merging categories A and B into a single category and applying rebates or surcharges based on the car's value. Motor dealers noted that the impending reduction in EV incentives has prompted buyers to make decisions sooner, despite the added uncertainty of the proposed COE changes.
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