Incentives for Buying EVs Extended in Singapore; Hybrids to Lose Rebates from 2026

Marketing SGCD
Sep 9
2 min read

Singapore is extending its green vehicle incentive schemes to drive the nation closer to its 2040 vision where all vehicles run on cleaner energy. The Vehicular Emissions Scheme (VES) will continue from 1 January 2026 to 31 December 2027, but with significant revisions to rebates, surcharges and banding. At the same time, the Electric Vehicle Early Adoption Incentive (EEAI) will be extended until the end of 2026, albeit with reduced rebates.

Both schemes are overseen by the Land Transport Authority (LTA) and the National Environment Agency (NEA). Since their launch, they have accelerated EV adoption in Singapore, with 80% of newly registered cars and taxis in 2025 being cleaner energy models, half of which are electric vehicles.

Key Changes to VES (2026–2027)

Only Electric Vehicles (EVs) will qualify for rebates.
Hybrid cars will no longer receive rebates.
More pollutive vehicles will face higher surcharges.
Vehicles in Bands B, C1, and C2 will move into revised bands with higher penalties.

Revised VES Bands and Rebates/Surcharges

Existing VES Band (till 2025)	Revised VES Band (2026–2027)	Rebate/Surcharge in 2026	Rebate/Surcharge in 2027
Band A1 (-S$25,000)	Band A	-S$22,500	-S$20,000
Band A2 (-S$2,500)	Band B	S$0	S$0
Band B (S$0)	Band C1	+S$7,500	+S$15,000
Band C1 (+S$15,000)	Band C2	+S$22,500	+S$30,000
Band C2 (+S$25,000)	Band C3	+S$35,000	+S$45,000

Which Cars Fall Into Each Band?

New VES Band (2026–2027)	Example Models
Band A	MG4 EV Trophy, Great Wall Ora, Dongfeng Box, Tesla Model 3, BYD Seal, BYD Atto 3
Band B	Nissan Note, Suzuki Swift, Honda Jazz, Toyota Camry, Hyundai Avante CN7, Kia Niro, Toyota Harrier Hybrid, Nissan Serena, Honda Freed
Band C1	Mazda 3, Volkswagen Golf, BMW 116i, Toyota Corolla Altis, Mercedes-Benz GLA180, Subaru Forester, Kia Carnival, Toyota Alphard
Band C2	BMW M135, Mazda CX-60, Mercedes-Benz GLC200, Honda CRV 1.5
Band C3	Mercedes-Benz S450L, BMW M3, Volvo XC60, BMW X3 M50, Porsche Cayenne II, Skoda Kodiaq

Impact on Popular EV Models

Model	VES Band (2026)	ARF Before Rebates	VES Rebates (Revised)	EEAI Rebates	ARF After Rebates
MG5 EV Luxury	Band A	S$28,675	-S$22,500	-S$6,175	S$0
BYD Atto 3 Extended Range	Band A	S$36,100	-S$22,500	-S$7,500	S$6,100
Tesla Model 3 RWD	Band A	S$57,210	-S$22,500	-S$7,500	S$27,210
Mercedes-Benz EQS450 4MATIC	Band B	S$241,284	S$0	-S$7,500	S$233,784

Updates to the Electric Vehicle Early Adoption Incentive (EEAI)

Extended until 31 December 2026.
Offers 45% rebate on ARF, capped at S$7,500 (down from S$15,000).
Maintains S$0 minimum ARF floor for EVs until 2027.

This means buyers of fully electric cars in 2026 and 2027 can still save up to S$30,000 (2026) and S$20,000 (2027) on ARF costs.

What This Means for Buyers

EVs remain the best-value option, especially with rebates and lower operating costs.
Hybrid buyers will lose rebates entirely, making EVs more attractive.
Pollutive vehicles will get hit harder, with surcharges reaching up to S$45,000 by 2027.
Short-term COE increases are expected, so buyers should plan purchases carefully.