These 3 Abbreviations Will Become Increasingly Significant In Singapore’s Car Industry

How do we know if we’re interacting with a fellow Singaporean? Spill abbreviations such as NS, NTUC, DSTA, OBS and UEN - they will not bat an eyelid. And we’re just getting started…

In Singapore’s car context, spotlights were on ARF and OMV, specifically in the previous two Budget announcements. Even ERP and OBU had a share of the spoils toward the end of 2023. But with EVs and hybrids doing more heavy lifting in recent times, it has urged authorities to formulate policies to accommodate more varied methods of propulsion.

This natural path of progression has, no doubt, made car buying more complex. Sure, we can shortlist cars solely based on their final list price, but with so much dough on the line, we won’t blame you if you’re curious what goes on behind the scenes.

EEAI - Electric Vehicle (EV) Early Adoption Incentive

It was introduced back in 2020, but the pandemic made sure that it stayed off our primary radar. Its intention was to lower the upfront cost of an EV (by an average of 11%) and narrow the cost gap from an ICE vehicle. EV buyers initially received a rebate of 45% off the ARF, capped at $20k. But the cap has been reduced to $15k, valid till the end of 2024. EEAI will remain effective till 2025. The financial impact might not be as drastic as COE for now, but once the 45% rebate expires, the hunt for funds will be more tedious.

VES - Vehicular Emissions Scheme

This is the one to watch in 2024. Introduced in 2018 to cover four more pollutants than the previous scheme - Carbon Emission-Based Vehicle Scheme (CEVS). Bands stretch from A1 (most “green”) to C2 (most pollutive). The latest bands swing from a S$25k rebate (A1) to a penalty of the same amount (C2). Keep an eye on the middle tiers (A2, B and C1), because it’s likely that due to new test cycle implementations (which we’ll touch on next), the rebate you thought you’re “supposed” to receive could now fall under the less “green” band. Pinch yourself - there’s a S$15k surcharge on some cars previously under neutral band B, including the Suzuki Jimny.

*Click here to view the latest VES rebates and surcharges

WLTP - Worldwide Harmonised Light Vehicles Test Procedure

One should not overlook the importance of this - the trickle down effect is noteworthy from a financial standpoint. WLTP is now the sole test procedure for new cars in Singapore. It's a more stringent way of emissions testing, which directly impacts VES bands. You might have paid attention to WLTP for a different reason - approximating the range of cars, particularly for EVs during their infancy. Now the writing's on the wall - a VES tier switch due to WLTP standard could result in a difference of as much as S$20k (A1 to A2).

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