Barriers to Electric Vehicle Adoption in Singapore: Charging Shortage and Import Challenges

Parallel importers express concerns as Singapore’s push for EVs favors authorised dealers over them.

SINGAPORE: While Singapore’s electric vehicle (EV) market is expanding, obstacles on both supply and demand sides are slowing widespread adoption. Despite Singapore’s goal of making every Housing and Development Board (HDB) town EV-ready by 2025 to reduce emissions, limited charging infrastructure and regulatory challenges for parallel importers continue to hinder EV uptake.

As of 2022, EV registrations comprised 11.8 percent of new car registrations, but restricted access to charging points still dissuades many potential buyers. Hyundai is one of the manufacturers producing EVs tailored to Singapore’s Certificate of Entitlement (COE) requirements, yet acknowledges that better charging access is crucial for boosting sales. “Easy access to charging facilities is key,” said Andy Kang, vice president at Hyundai Motor Group Innovation Centre.

Parallel importers, however, face specific challenges in Singapore’s EV landscape, especially around registration requirements and road tax calculation, which currently disadvantages them compared to authorised dealers. Without direct ties to carmakers, parallel importers struggle to bring in certain models due to regulatory hurdles, says Galvin Khong from Vin’s Automotive Group. This lack of parity affects consumer choice, with many opting for authorised dealers’ warranties and support despite higher prices.

The Singapore Vehicle Traders Association is appealing to the Land Transport Authority and National Environment Agency for fairer conditions, expressing concern that parallel importers may eventually lose market share if left unsupported.

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