Demand for EVs in Singapore rises despite apprehensions about charging interoperability as well as charging and operating costs

• Increase in demand for EVs between 2023 and 2024 was driven by fully electric vehicles, while that for hybrid and plug-in hybrid cars stayed similar

• Despite nationwide efforts to upgrade EV charging infrastructure, car buyers remain unaware

• Connectivity features that improve safety and security, and help with navigation rank high; autonomous driving technology is not a priority for consumers in Singapore

Car buyers in Singapore are warming up to electric vehicles (EVs) as 73% (global 58%) are looking to buy EVs this year, compared to 63% (global 55%) last year. Of those looking to buy an EV this year, 40% of the respondents in Singapore (global 24%) indicated they are most likely to purchase battery electric vehicles (BEV), while the rest (Singapore and global 33%) opted for either a hybrid or plug-in hybrid, suggesting a preference for a gradual transition from an internal combustion engine (ICE) car to hybrid to BEV, as well as the security a hybrid engine offers.

This is according to the fifth edition of the annual EY 2024 Mobility Consumer Index (MCI), which canvassed the views of 19,000 respondents from 28 countries. The survey includes more than 2,800 respondents in Southeast Asia (SEA), covering Malaysia, Indonesia, Thailand, Vietnam, as well as 300 in Singapore.

In Singapore, the superior performance offered by EVs compared to ICE cars (33%) was the top factor in motivating potential car buyers to buy an EV, followed by status symbol associated with owning an EV (30%) as well as a genuine concern for the environment (29%). This contrasts against the responses from car buyers globally, where the high cost of fuel, oil and gas (global 37%) was the primary reason for EV purchase, followed by environmental concerns (global 34%) and rising penalties on ICE vehicles (global 23%).

Some concerns were still holding some prospective car buyers back. Apprehensions about charging interoperability was a primary concern (Singapore 26%, global 14%), followed by uncertainty about charging and running costs (Singapore 25%, global 17%), a lack of clarity in the political and regulatory landscape (Singapore 24%, global 8%) as well as the limited charging stations (Singapore 24%, global 27%). Consistent with the results of last year’s study, concerns surrounding charging interoperability and availability of charging stations persist among respondents.

While Singapore has made significant progress in expanding the number of charge points at public locations, owners of BEVs and plug-in hybrids have reported several challenges. The majority cited expensive charging costs in public charging locations (Singapore 60%, global 33%), while others shared concerns over the safety of their cars during charging (Singapore 40%, global 21%) and the long wait times (Singapore 37%, global 42%).

Oliver Redrup, Associate Partner, Strategy and Transactions - Infrastructure Advisory at EY Corporate Advisors Pte. Ltd. says:

“EV sales in Singapore have surged over the past year, fuelled by the growing availability of charge points and a wider range of EV options across various price points. In fact, across Southeast Asia, Singapore is already leading in charging infrastructure. By 2025, almost 2,000 Housing and Development Board (HDB) carparks will each have a minimum of three charge points. Despite ongoing efforts to tackle issues relating to EV charging, this year’s survey results reflect that there is room for further efforts to bring greater awareness on what has been done nationwide to alleviate charging woes, as well as educate consumers on the interplay of factors when it comes to EVs, including technological advancements, economic considerations and policy frameworks.”

Increasing awareness of connectivity features in cars 

Connectivity features in cars are transforming the automotive and transportation sector, making them more efficient, intelligent and user-friendly. Respondents in Singapore have a strong interest in connectivity, particularly technologies that improve safety and security, such as vehicle tracking and collision warning (Singapore 65%, global 58%); help with navigation via real-time traffic alerts and route planning (Singapore and global 63%); followed by automated maintenance and service scheduling and alerts (Singapore 40%, global 37%). Singapore respondents ranked features like autonomous driving lower, at 22% (global 18%).

Interestingly, the results did not show generational shifts in attitudes – across Gen Zs, Millennials and Gen X – in terms of the type of connectivity features they would use when connecting their cars to the internet.

While many in Singapore are willing to pay for highly ranked connectivity technologies in the areas of safety and security, and navigation, the perception that these features are expensive and complex to use continue to weigh heavily on respondents.

Susana Utama, EY-Parthenon Partner, Industrial and Value Creation at Ernst & Young Solutions LLP says:

“There is clearly a case to be made when it comes to connectivity features in cars. The MCI highlights that Singapore’s car buyers are placing greater emphasis on functional technologies. Consequently, both car manufacturers and consumers need to give precedence to data governance, integrity and quality. Only by collecting and analyzing data can manufacturers create and improve insights and services towards personalized driving experiences for consumers. Manufacturers seeking to fully monetize this area will need to explore ways to encourage sharing of vehicle or personal data.”

                                                                                                    -ends -

Notes to editors

About EY

EY exists to build a better working world, helping create long-term value for clients, people and society and build trust in the capital markets.

Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate.

Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. 

Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com.

This news release has been issued by Ernst & Young Solutions LLP, a member of the global EY organization.

About EY’s Global Advanced Manufacturing & Mobility Sector

Urbanization, changing consumer expectations and emerging digital technologies are reshaping what’s possible, from the production and distribution of goods to the transportation of people. To succeed in this new world of mobility and smart manufacturing, incumbents must transform themselves at unprecedented speed — to think like an innovative startup, tap into new talent and engage the customer. With experience across the value chain and key technology alliances, our teams show clients how to create efficiencies now while adopting digitization and optionality for long-term growth. Automotive, transportation, aerospace, defense, chemicals and industrial products companies can draw on the strength of our network of cross-industry players and put our diverse range of approaches to use today to equip their businesses for tomorrow. 

About the Mobility Consumer Index

The EY Mobility Consumer Index (MCI) provides unique insights into the global trends of the future of mobility. Based on a global survey of 19,000 consumers across 28 countries (Australia, Austria, Brazil, Canada, China, Colombia, Czech Republic, Denmark, Finland, France, Germany, India, Indonesia, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Norway, Singapore, South Korea, Spain, Sweden, Thailand, Vietnam, UK, and US) during June and July 2024, MCI also aims to assess the consumers’ car buying journey while offering insights around their attitudes towards mobility choices and sustainability.