Petrol price surge isn’t enough to make Singapore drivers switch to EVs, say car dealers

Depreciation has also become a sharper concern following revisions to PARF rebates in February, which reduced payouts for drivers who scrap their cars before their COE expires.

Mr Chan noted that in other countries, cars can cost less than S$20,000, making fuel prices a far more significant share of total ownership costs.

Traffic to EV listings on SgCarMart rose 15 to 20 per cent in March compared to February, Mr Chan said, but he attributed this to steady growth that has been building since the start of the year, not a sudden spike. He said the uptick is more likely linked to stricter emissions-based taxes introduced on Jan 1.

Mr Chris Sim, director of EV dealership EV Direct, said enquiries have picked up, though this has yet to translate into a meaningful rise in sales. Of the buyers he has spoken to, only one cited rising fuel prices as the primary motivation for purchasing an EV. 

Still, he expects the early interest to eventually convert into stronger demand.

“We are seeing a start of this trend with people enquiring because of the rising fuel costs, but we are expecting that this will translate to more sales for EVs,” he said.