The automotive industry is shifting towards electric vehicles (EVs) after the Singapore government announced that all vehicles must run on cleaner energy by 2040. This will phase out internal combustion engine (ICE) vehicles, which is a pivotal step towards achieving the country’s net-zero target.
In tandem, the government has been creating the necessary infrastructure to support EVS. Charging points are progressively set up in both public and private premises to alleviate range anxiety in EV owners. At the same time, monetary incentives and tax rebates have been introduced to encourage consumers to hop on the EV bandwagon.
Today, consumers are spoiled for choice when it comes to choosing an EV to own. Established ICE carmakers in Singapore — from Japanese and Korean brands to continental marques — are rolling out a wide range of EV models. Additionally, new brands, especially from China, are muscling their way into the market.
China is now seen as the global leader in EVs, with some 200 manufacturers. Currently, BYD takes the top spot in China and is also the world’s largest EV maker. In October, the group sold 502,757 pure-electric and hybrid vehicles, representing a growth of 66.5% y-o-y or 19.8% m-o-m. This is the fifth consecutive monthly record for BYD, which is backed by Warren Buffet’s Berkshire Hathaway.
Vincent Sun, senior equity analyst at Morningstar, highlights that China’s EV sales saw a robust 31% growth from the start of the year to October, reaching around 8 million units by the end of 3Q2024, cornering a record 49% of the total auto market.
He is projecting continued growth in EV sales, with an expected 20%–25% increase for the year, driven by government subsidies, improving vehicle technology and a surge in new model launches that provide consumers with more options.
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Sun notes that while EVs continue to gain market share from ICE vehicles, profitability remains a concern. Ongoing price competition, inventory pressure and discounting are keeping profit margins under pressure. However, he sees early signs of inventory easing, which, along with lower battery costs, could help alleviate cost pressures for automakers and support margin improvements next year.
According to Sun, BYD’s outlook may be challenging in the near term. Margins are likely to remain under pressure due to price promotions and competition in the domestic market despite the brand’s strong sales volume, which should drive top-line growth.
Giving BYD a three out of five stars, Sun says investors are likely to receive “a fair risk-adjusted return”. He has a fair value estimate of RMB270 ($50.23).
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Ready, get set, go
Back in Singapore, after the cold start of the initial years, consumers are warming up to EVs. According to the Land Transport Authority (LTA), 9,941 EVs were registered in Singapore from January to September, 81.8% higher than the 5,468 EVs registered in 2023.
A 2023 research study commissioned by leading distributor Cycle & Carriage (C&C) Singapore to understand consumer sentiments towards EVs showed that 67% of existing petrol vehicle owners are looking to sell their cars by next year, with one in two looking to switch to a hybrid or an EV.
According to a C&C spokesperson, the data showed that consumers in Singapore are keen to try out EVs, supported by government schemes such as the Electric Vehicle Early Adoption Incentive, which has been extended till Dec 31, 2025. Overall, the sentiment from Singapore consumers on EVs is positive.
Currently, C&C has a diverse portfolio of brands, including Mercedes-Benz, KIA, Citroën and Maxus, that offer a range of both EVs and ICE vehicles. It also has EV-only brands, Ora and Smart. “Recently, we also commercialised Gogoro, which is a two-wheel electric scooter based on battery-swapping technology,” says the spokesperson.
He adds that China EV brands accounted for more than 40% of newly registered EVs in Singapore in 1H2024. This shows a positive sentiment and acceptance of China EV brands, given their affordability, technology and comfort. Despite the small market, Singapore is one of the important and fastest growing markets, making it an ideal market for expansion.
“The Singapore automotive market has always been competitive, and with more new brands entering the market, the competition has intensified. Each brand and model targets a different audience segment, and for Cycle & Carriage Singapore (C&C), we focus on highlighting the Unique Selling Propositions (USPs) of our brands and models. As EVs become more commoditised, brand affinity and USPs become ever more important,” says the C&C spokesperson, who is confident C&C will continue to do well in Singapore.
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Shares of Jardine Cycle & Carriage , which owns the distributorship, are trading at $28.29 as at Dec 19, down 5.6% since the start of the year. The stock does not have any analyst coverage.
Adding on, Shekhar Jaiswal, RHB Bank Singapore’s head of equity research, believes that Singapore is on track to achieve its goals. He says: “Availability, both in terms of more vehicle options and charging infrastructure, as well as government incentives, are some of the key factors that will drive the rapid switch to EVs in Singapore. Newer EV models are slowly being introduced, and the country, which aims to deploy 60,000 EV charging points by 2030 and make every HDB town EV-ready by 2025, seems to be on track to achieve these targets.”
In 1H2024, almost one-third of newly registered cars were electric. As of September, Singapore has over 15,300 charging points island-wide. “Barring a sudden reduction in government incentives or a sharp rise in COE prices, I think Singapore should remain on track for rapid EV adoption,” adds Jaiswal.
While NIO , the Chinese EV manufacturer, is listed on the Singapore Exchange , Jaiswal sees ComfortDelGro as one of the beneficiaries of the rapid adoption of EVs in Singapore. It would gain from the rapid electrification of its taxi and private hire vehicle fleet and public bus fleet, as well as from the rapid deployment of EV charging stations across Singapore, which will be undertaken through its joint venture with French utility firm Engie. RHB has a “buy” call on ComfortDelGro with a target price of $1.70.
Made in Singapore
While Singapore does not have its own car brand, Korean car maker Hyundai has opened a new manufacturing facility on Bulim Avenue, Hyundai Motor Group Innovation Centre Singapore (HMGICS).
Speaking to The Edge Singapore, Nigel Yong, leader of brand and product communications for HMGICS, shares that the entry of new China EV brands into Singapore’s market signals healthy competition and a growing interest in electric mobility, which HMGICS sees as an opportunity to strengthen its leadership in sustainable mobility solutions further.
“Hyundai’s presence in Singapore is built on a legacy of contributing to the nation’s growth. Through HMGICS’s distinctive approach, we are expanding that foundation by pushing the boundaries of EV manufacturing and fostering sustainable business models. This commitment positions Hyundai not only as a competitor but as a long-term partner in shaping Singapore’s mobility future,” says Yong.
Amid the strong competition in the market, Hyundai aims to stay relevant by reshaping the mobility experience through innovative products, immersive customer journeys and advanced technology at HMGICS. “More than just a manufacturing hub, HMGICS uses cutting-edge methods, including artificial intelligence (AI) and robotics, in its flexible production system. This ensures exceptional quality control and product standards, enabling Hyundai to adapt quickly to customer needs while delivering world-class vehicles,” says Yong.
HMGICS locally manufactures the Hyundai Ioniq 5 and Ioniq 6 and is constantly reviewing its portfolio to introduce new vehicles tailored to Singapore’s needs.
However, as much as Hyundai may manufacture smart and sustainable electric vehicles, consumer education is important to teach the public and the next generation about the benefits and potentials of EVs. HMGICS has taken on the role of an educator, offering an immersive, hands-on experience that brings the advantages of EVs to life in an engaging and informative way with its specially tailored Discovery Tour.
“For customers, we understand that switching to EVs can feel overwhelming, especially for first-time buyers. That’s why we’ve created solutions to make the transition smooth and convenient. Comprehensive charging options, warranty packages, and over-the-air updates ensure a hassle-free ownership experience, with vehicles that remain up-to-date and require minimal servicing. This approach helps educate consumers about the practical benefits of EV ownership, from environmentally friendly driving to everyday convenience,” says Yong.
