Buying a car in Singapore is never cheap, but for those considering switching to greener transport, understanding the financial side is crucial. While petrol cars remain popular, electric vehicle Singapore models are becoming more attractive thanks to rebates, lower running costs, and government incentives.

If you’re wondering how much EV ownership really costs and what rebates are available, this breakdown will help you make sense of the numbers.

Upfront Costs: Petrol vs. Electric

Let’s start with the basics. Petrol cars generally have lower sticker prices compared to EVs. This can make them appear more budget-friendly at first glance. However, in Singapore’s tightly regulated market, where Certificate of Entitlement (COE) prices already push car costs sky-high, incentives and rebates make EVs more competitive than you might think.

An EV may cost slightly more upfront, but many of the additional expenses are offset by government schemes aimed at encouraging greener driving.

Key Rebates and Incentives

The government has rolled out several programs to make EVs more affordable:

• EV Early Adoption Incentive (EEAI): EV buyers can enjoy rebates that significantly reduce the upfront price. This scheme alone can save drivers tens of thousands of dollars.
  
• Vehicle Emissions Scheme (VES): Since EVs produce no tailpipe emissions, they qualify for maximum rebates under VES, further lowering costs.
  
• Road Tax Adjustments: While EVs were initially more expensive to tax due to power rating formulas, recent changes have made road tax more reasonable and competitive.
  

Together, these incentives create a more level playing field between petrol and electric cars.

Running Costs: Daily Savings

The real financial advantage of EVs lies in their running costs. Petrol prices in Singapore are high and fluctuate frequently. Electricity, on the other hand, is much cheaper. Charging an EV—whether at home or at a public station—costs significantly less per kilometer compared to filling up a petrol tank.

For drivers who rack up daily mileage, the savings can be substantial over the years.

Maintenance and Servicing

Another area where EVs win is maintenance. Petrol cars have complex engines, oil systems, and exhaust parts that require regular upkeep. EVs have fewer moving parts, no oil changes, and far less wear and tear.

This translates to fewer workshop visits and lower maintenance bills, which can save thousands of dollars across the lifespan of the car.

Charging Infrastructure vs. Petrol Stations

One cost-related factor that often worries new EV buyers is charging availability. Petrol stations are everywhere, while charging points are still catching up. The good news is that Singapore is expanding its EV charging network rapidly, with thousands of new stations being rolled out in housing estates, shopping malls, and office buildings.

As charging becomes more accessible, range anxiety and charging delays will become less of a financial and practical concern.

Road Tax and Insurance

EV road tax in Singapore used to be a sticking point, but revisions have brought costs closer to petrol vehicles. Insurance premiums also depend on the model, driver profile, and coverage, but as EV adoption grows, insurance companies are offering more competitive packages.

Long-Term Value

When comparing EVs to petrol cars, the long-term picture matters most. Lower running costs, rebates, and maintenance savings mean that the initial higher price of EVs often balances out over time.

On top of that, EV resale value is expected to improve as demand grows and more Singaporeans shift toward greener vehicles. Petrol cars, by contrast, may lose appeal as global policies and consumer preferences move away from fossil fuels.

Environmental Value

While numbers and rebates are important, there’s also the added benefit of driving cleaner. Petrol cars contribute to air pollution and carbon emissions, while EVs produce no tailpipe emissions. For eco-conscious drivers, this is a non-monetary “rebate” that adds long-term value to EV ownership.

Final Thoughts

The cost of owning a car in Singapore will always be high, but electric vehicle Singapore models are becoming more affordable thanks to rebates, incentives, and lower running expenses. While the upfront price may seem daunting, the real savings are found in running costs, maintenance, and government support.

For those willing to think long-term, an EV isn’t just a greener choice—it’s increasingly a smarter financial decision as well.