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Singapore is ready for EVs, but the industry needs to catch up

By Soh Ming

The EV transition is not simply a consumer decision; it is an industry-wide transformation. 

Singapore is well-positioned for the adoption of electric vehicles (EVs). Charging infrastructure is expanding steadily, vehicle technology has matured, and the total cost of ownership is now competitive with internal combustion engine (ICE) cars. 

Yet adoption is still constrained not by technology or policy gaps, but by mindset inertia amongst drivers, businesses, and even industry stakeholders. 

Range anxiety is overstated in Singapore. The average daily commute is under 30 kilometres, and no driver is more than 15 minutes from a charging point. 

With over 5,000 public charging points already deployed and more planned, the fear of running out of charge is largely psychological. However, this perception influences both consumer hesitation and corporate decision-making, slowing down EV fleet conversions and leasing uptake. 

Behavioural adaptation is required. Drivers accustomed to petrol refuelling wait until their tanks are nearly empty before stopping at a station. EV usage requires a different model: charging opportunistically whilst vehicles are parked at home, during work, or in transit. 

For fleet operators, this represents an operational shift. Scheduling must be adjusted to integrate charging downtime, but when properly managed, EV fleets can operate with greater predictability and lower running costs than ICE vehicles.

Infrastructure is evolving towards ease of use. City Energy’s recent launch of Singapore’s first app-free charging network illustrates how the ecosystem is addressing user friction. 

Eliminating login steps or reliance on mobile connectivity reduces barriers for both individual drivers and fleet operators, where time efficiency directly impacts costs. Simplification of this kind is essential for scaling adoption. 

The adoption gap is uneven. Cost-sensitive segments, private-hire drivers, logistics companies, and budget-conscious households recognise EV economics quickly: reduced fuel costs, fewer mechanical issues, and lower servicing needs. 

By contrast, larger corporations and higher-income households remain more hesitant, citing concerns around depreciation, charging downtime, and resale values. Ironically, these are also the groups best placed to lead adoption due to their purchasing power and access to capital. 

For example, financiers often price EV loans conservatively due to perceived battery risk, despite data showing lower maintenance costs. Leasing companies hesitate to invest heavily in EV fleets without stronger secondary market structures. Moreover, insurers sometimes charge higher premiums due to unfamiliarity with EV repair costs, even though claim frequencies are not significantly higher.

These misalignments create additional hesitation across the ecosystem, delaying corporate uptake. What needs to happen next is clear. 

Dealers and distributors must offer stronger after-sales assurances, such as guaranteed buyback schemes and battery warranties, to de-risk adoption for businesses. Fleet operators need clearer modelling of operational savings over vehicle lifecycles, not just purchase price comparisons. 

Financial institutions and insurers should update product frameworks to reflect actual EV usage data rather than assumptions. Policymakers should also continue to align incentives with operational realities, particularly for commercial fleets and logistics operators, where emissions reduction potential is highest.

The EV transition is not simply a consumer decision; it is an industry-wide transformation. Singapore’s infrastructure and policy support are already robust by regional standards. 

The remaining barrier lies in aligning industry practices and organisational behaviour with the operational realities of EVs. 
Unless this alignment occurs, Singapore risks a paradox: having the infrastructure and technology in place but underutilised because outdated perceptions continue to shape decisions. The opportunity cost is not only slower emissions reduction but also foregone operational efficiencies for companies that could already benefit from electrification. 

This is not a technology problem, nor primarily a policy problem. It is a coordination and mindset problem within the broader industry. 

Addressing it requires practical adjustments across financing, operations, and after-sales support. The faster we resolve these frictions, the sooner Singapore can consolidate its position as ASEAN’s benchmark for electrified transport. 

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