Singapore Permit to Own Tesla Model 3 Jumps to Record High

A BYD Co. e6 EV car on display at a showroom in Singapore. Photo by Ore Huiying /Photographer: Ore Huiying/Bloomb

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(Bloomberg) — The right to own a small car in Singapore climbed to a record S$129,000 ($99,700), with premiums expected to rise further as government rebates for electric vehicles are scaled back.

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The price of a Category A certificate of entitlement meant for smaller cars and EVs advanced 4.2% in Wednesday’s bidding exercise from the previous round in June. Premiums for larger, more powerful cars and EVs increased 6% to S$130,889.

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The surge in premiums comes as Singapore trims incentives aimed at encouraging early EV adoption. Buyers can lop off as much as S$30,000 off a car tax in 2026 under Singapore’s push to boost cleaner energy vehicles. That shrinks to S$20,000 next year and will taper off as the proportion of EVs rises. 

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The Land Transport Authority has warned the changes could temporarily push up COE prices as buyers bring forward purchases in one of the world’s most expensive places to own a car. An entry-level Tesla Inc. Model 3 including a permit to drive the sedan for a decade comes to S$203,411. The same make in the US starts at $36,990. 

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“Consumers do not want to miss out on the savings and probably made up their minds to bite the bullet and jump in on the EV bandwagon,” said Say Kwee Neng, managing partner at One Strategic Consulting. “The astronomical rise in pump prices, coupled with runaway COE prices, probably pushed customers to get off the fence.”

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Vehicle dealers are also stepping up promotions to clear their EV inventory, adding to demand in Singapore’s tightly-controlled car market, said Victor Kwan, an automotive analyst and associate professor at the Singapore University of Social Sciences.

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Still, Singapore’s electrification transition is expected to continue.

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Chinese EV makers led by BYD Co. have shown a willingness to offer aggressive discounts and dealer incentives to defend market share, keeping prices competitive without government support, Say said. The cheapest BYD car costs S$166,888 with a price-match guarantee. 

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EVs now make up more than half of new cars registered in Singapore, according to the transport authority. BYD was the best-selling car brand in the city state for the past two years, beating legacy favorite Toyota Motor Corp..

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“As incentives taper off, the EV market will shift from policy-driven growth to a more market-driven phase,” said Timothy Wong, head of automotive and mobility practice for Southeast Asia at Roland Berger. Buyers will increasingly choose EVs for their performance, lower running costs and broader product offerings, he added. 

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Source: Land Transport Authority, Singapore

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—With assistance from Cynthia Li.

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(Adds tax savings in the third paragraph and Tesla price in the fourth paragraph.)

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