Consider separate COE category for electric vehicles

It was recently announced in Parliament that electric vehicles (EVs) with up to 110kW of power will come under the Category A Certificate of Entitlement (COE) from May onwards.

The maximum power output threshold for Category A is currently 97kW. The move would effectively allow more powerful EVs to move from Category B, which is for larger cars, to the mass-market category.

With Singapore’s current zero growth rate policy for cars, the Land Transport Authority (LTA) has previously said that the COE quota is determined largely by the number of vehicle de-registrations.

If this is a one-to-one exchange, with the same quota applying to both EVs and cars with internal combustion engines, Category A could become more crowded with former Category B EVs piggybacking on Category A COEs. 

This may cause COE prices in that bracket to rise even higher.

Perhaps LTA could consider having a separate COE category for EVs?

It could be based on a certain percentage of growth for EVs only, and not be part of the quota for conventional cars. 

To further encourage motorists to buy EVs, LTA should also allow a nominal increase in growth for this new category.

With Singapore’s push towards a greener environment, there must be attractive incentives to nudge motorists to switch to EVs.

EVs are already pricier compared to conventional cars, although there are government rebates to offset the cost. Plus, there are other factors to consider such as the cost of replacement batteries and the inconvenience of finding a charging point.

A possible rise in Category A COE prices would only add another disincentive for those considering an EV.