EV sales are predicted to surge by 170% in 2021.
Singapore’s electric vehicle market will see an accelerated growth on the back of the country’s growing automotive sales market and the expansion of EV charging networks, according to Fitch Solutions.
Fitch believes that the government as well as the wealthy population will prioritise the purchase of electric vehicles (EVs) over internal combustion-engined (ICE) vehicles.
“Furthermore, the government will also accelerate the development of its nascent EV-charging infrastructure which will further motivate consumers and fleet operators to make the shift from ICE to EVs as it becomes more user-friendly in the city-state,” Fitch said.
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Fitch forecasts EV sales in the country to expand by 170% YoY in 2021, reaching annual sales volume of 475 units despite stumbling in 2020. This would represent a strong expansion following a 73% YoY decline in EV sales in 2020.
EV sales are expected to continue to grow at an average annual rate of 40% YoY from 2022-2030, to reach an annual sales volume high of just under 7,000 units and an EV-penetration rate of around 9.6% of total vehicle sales.
“That said, we note that there is room for stronger growth given the wealthy population, especially as the cost of EVs moderates in Singapore and as the cost of ICE-vehicle ownership rises,” Fitch added