Singapore is making significant strides towards building a sustainable transportation system with the announcement of substantial incentives to accelerate the adoption of electric heavy vehicles. Starting January 1, 2026, the Singaporean government will implement new subsidy and grant schemes aimed at reducing carbon emissions from the transportation sector.
The newly introduced Heavy Vehicle Zero Emission Scheme (HVZES) will provide a S$40,000 (approximately US$29,800) subsidy for each newly registered zero-emission heavy vehicle. This initiative targets goods vehicles and buses with a gross vehicle weight exceeding 3,500kg, with the subsidy distributed over a three-year period.
Furthermore, the Electric Heavy Vehicle Charger Grant (EHVCG) will support the development of charging infrastructure by covering up to 50% of private charger installation costs, capped at S$30,000 (approximately US$22,350). This grant is designed for businesses that install chargers with a minimum output of 50kW per charger and commit to purchasing at least one electric heavy vehicle per charger.
The Land Transport Authority (LTA) of Singapore anticipates that these measures will effectively bridge the total life cycle cost gap between electric and traditional internal combustion engine heavy vehicles, thereby encouraging their adoption. The expansion of heavy vehicle charging infrastructure is also expected to bolster the overall electric vehicle ecosystem and contribute to Singapore's ambitious goal of achieving carbon neutrality by 2050.
Given its limited land area and high population density, Singapore recognizes the critical importance of electrifying its public transportation and commercial vehicle fleets. In addition to these new incentives, the Singaporean government is actively fostering the electric vehicle market through various policies, including electric vehicle purchase subsidies and support for charging infrastructure development.
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