EVs dominate Singapore car registrations

The Electric Tipping Point: Decoding Singapore’s Rapid EV Shift

Singapore has officially crossed a critical threshold in its automotive evolution. For the first time, electric vehicles (EVs) have outnumbered both combustion engine and hybrid models in new car registrations. This isn’t just a gradual shift; it is a market acceleration that is fundamentally rewriting the rules of ownership in the city-state.

Looking at the trajectory, the growth is staggering. Recent data shows that EVs accounted for 57.6 per cent of new car registrations in the first quarter of 2026, a massive leap from the 45 per cent seen in 2025. To put this in perspective, we have moved from a mere 3.8 per cent registration rate in 2021 to over half of all new cars being electric in just five years.

The Rise of the Chinese EV Powerhouses

The most striking trend in the current landscape is the dominance of Chinese manufacturers. BYD has emerged as a market leader, capturing 24.3 per cent of total registrations with 3,239 units. This extends a growth trend that saw the brand hold a 21.2 per cent market share at the end of 2025.

But BYD isn’t alone. A broader wave of Chinese brands is infiltrating the top 10, with Chery, GAC, and MG all securing spots. This surge is not accidental; it is a masterclass in strategic positioning.

The Category A COE Strategy

One of the most effective levers these brands have used is the Certificate of Entitlement (COE) system. By designing models that fit within the Category A COE bracket—which typically carries a lower cost than Category B—Chinese EV makers have made electric mobility accessible to a wider demographic of buyers.

This strategy allows them to undercut luxury competitors while offering the modern tech and sustainability that today’s drivers demand. As more brands optimize for Category A, we can expect the “middle market” of EVs to expand even further.

Legacy Brands and the Fight for Market Share

While Chinese brands are surging, legacy manufacturers are fighting to maintain their footing. Toyota remains a formidable force, retaining the second position with a 14.5 per cent market share and 1,932 registrations. Interestingly, Toyota has seen a slight improvement of 0.3 percentage points over 2025, despite having a more limited range of EV offerings compared to the new entrants.

Meanwhile, Tesla has seen a significant resurgence, climbing from sixth place in 2025 to the third best-selling brand in the most recent quarter, capturing 11.4 per cent of the market with 1,515 registrations.

The European luxury segment is also in flux. Mercedes-Benz and BMW, currently holding the fourth and fifth positions with 6.4 per cent and 6.2 per cent market shares respectively, have recently exchanged places in the standings. This volatility suggests that even the most established luxury brands are feeling the pressure to innovate their EV lineups to keep pace with the agility of newer competitors.

The Economics of the Switch: Rebates and Penalties

The shift toward electric isn’t just about brand preference; it’s about the bottom line. The Singapore government has implemented aggressive financial levers to steer consumers toward greener choices.

Currently, buyers can benefit from rebates of up to $30,000 off upfront vehicle taxes for EVs. On the flip side, those opting for non-EVs may face penalties of up to $35,000, depending on the vehicle’s emission levels. When you combine a $30,000 saving with a potential $35,000 penalty for a combustion engine car, the financial incentive to go electric becomes nearly impossible to ignore.

As these schemes evolve, the cost gap between traditional cars and EVs will likely widen, potentially pushing the registration rate for electric vehicles even higher in the coming years.

For more on how these regulations affect your wallet, check out our guide on understanding the current COE landscape or visit the Land Transport Authority for official registration data.

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