Are Electric Vehicles worth it? We do the math for you!
4-minute read
The cost of owning a car is getting out of hand. Certificate of Entitlement (COE) premiums hit a new record on 18 October 2023, an astounding high of S$158,004 in the Open category, which can be used for any vehicle type of any size.
This includes electric vehicles (EVs), which have gained momentum in recent years thanks to the Singapore (SG) Green Plan. The whole-of-nation movement aims to phase out less eco-friendly vehicles for cleaner-energy models by 2030, and for all vehicles to run on cleaner energy by 2040. In fact, MSIG has enhanced our MotorMax Plus plan to cover EVs too.
With the SG Green Plan already in motion, drivers must start considering or preparing themselves to switch to EVs – or maybe even question if driving in little Singapore is worth it anymore, especially when our public transport systems are so well-connected. Car ownership (or living costs in general) continues to get more expensive, and it doesn’t look like the cost will go down anytime soon.
We help you in your decision-making by running the calculations of owning both Internal Combustion Engine (ICE) cars (also known as petrol cars) and EVs for you. For demonstration purposes, we will compare popular makes of similar cost price points from the top ICE and EV brands in Singapore: a Toyota Corolla Altis 1.6 Standard and a BYD Dolphin Dynamic.
We’ll zoom in on these key factors:
1. Government Incentives
To achieve 100% EV adoption by 2040, there are special rebates exclusive to EVs to help drivers save costs, namely LTA’s EV Early Adoption Incentive (EEAI) and NEA’s Vehicular Emissions Scheme (VES)
In September 2023, both initiatives were extended and enhanced to encourage more drivers to adopt cleaner cars with lower carbon emissions. The revised rebates, effective in 2024, offer drivers a combined cost savings of up to S$40,000 off the Additional Registration Fee (ARF), the tax paid when registering a vehicle.
See Table A for a breakdown of the basic cost after rebates. Note that there is a limited time window for rebates and that COE and Open Market Value (OMV) prices are not fixed.
| Table A: Cost of Registering a Car1 (As at Oct 2023) | ||
|---|---|---|
| Toyota Corolla Altis 1.6 Standard (ICE car) | BYD Dolphin Dynamic (EV car) | |
| COE Category | A | A |
| VES Banding | B | A1 |
| Average OMV | S$19,618 | S$31,189 |
| ARF Before Rebates | S$19,618 (100%) | S$35,655 (140%) |
| VES Rebate | -S$0 | -S$25,000 |
| EEAI Amount | -S$0 | -S$10,665 |
| ARF After Rebates | S$19,618 | S$0 |
| Total Basic Cost (Incl. COE + GST & Excise Duty + Regn Fee) | S$151,393 | ✓ S$146,771 |
1Source: One Motoring SG
2. Maintenance Cost
Similar to your annual health checkup, servicing your car regularly ensures that everything is in tip-top condition. This involves an inspection and maintenance of your car’s systems and components.
Unlike combustion engines, the electric motors in EVs have very few moving parts, making them less prone to wear. EVs also don’t require the regular oil changes that ICE cars do. Hence, they’re easier to upkeep and EV owners don’t need to service their cars as often. In fact, a 2021 study found that EVs cost 31% less to service over the first three years than ICE cars.
See Table B for an estimated annual cost of servicing your car and the key parts mechanics should check when you visit. Note that, naturally, older cars may get more costly to service as more work needs to be done to keep the weathered car in good condition. Our estimates are also base costs and do not include any extra services that mechanics might try to sell you.
| Table B: Annual Cost of Car Maintenance Services (As at May 2023) | ||
|---|---|---|
| Toyota Corolla Altis 1.6 Standard (ICE car) | BYD Dolphin Dynamic (EV car) | |
| Recommended Servicing Frequency | Every 6 months (Or every 10,000km) | Every 2 years |
| Servicing Checklist2 |
|
|
| Average Cost of Servicing Car3 | S$278 (Every 10,000km) | S$600 |
| Annual Servicing Cost | S$556 | ✓ S$300 |
2Sources: Motorist Car Servicing Guide, BYD EV Ownership Guide
3Source: MoneySmart, SingSaver
3. Energy Cost
To meet the SG Green Plan goal, 60,000 EV charging points will be made available by 2030 - two-thirds commercial and 20,000 in private premises.
In Singapore, there are two types of EV charging: Alternate Current (AC) and Direct Current (DC). Typically done at home, AC charging is cheaper but slower, taking roughly eight hours for a full charge. On the other hand, commercial DC chargers found in office building and mall carparks can charge an empty battery to 80% in about 30 minutes.
See Table C for each car's calculated annual energy cost, assuming the average Singaporean drives about 20,000km per year. Note that the average EV owner will use a unique mix of both AC and DC chargers, and this split will affect the overall cost of energy per year.
| Table C: Annual Cost of Petrol/ Energy4 (As at Oct 2023) | ||
|---|---|---|
| Toyota Corolla Altis 1.6 Standard (ICE car) | BYD Dolphin Dynamic (EV car) | |
| Engine (cc) | 1598 | - |
| Maximum Power Output (kW) | 96.0 | 70.0 |
| Fuel Type | Petrol | Electric |
| Fuel Economy/ Energy Consumed | 6.1(L/100km) | 152.0(Wh/km) |
| Average Energy Rate5 | S$2.90/litre | S$0.465/kWh |
| Annual Energy Cost | S$3,538 | ✓ S$1,413.60 |
4Source: LTA’s Fuel Economy Calculator
5Sources: Motorist - Petrol, Motorist - EV Charging
The Verdict
All factors considered, switching to EVs now can save you approximately S$30,000 over the course of 10 years compared to owning an ICE car. That’s not just savings for your wallet. It’s also a big win for the planet as you reduce total carbon emissions.
Get MSIG MotorMax Plus Insurance
Regardless, cars are costly and will set you back by at least six figures. Besides opting for an EV, a simple way to reap even more savings in the long run is to protect your car with comprehensive and reliable car insurance.
Aligned with Singapore’s 100% electric movement, MSIG recently enhanced our MotorMax Plus to cover EVs. In addition to the Transport Allowance, New for Old Replacement and Replacement of Car Lock and Keys, EV owners can now enjoy these additional benefits:
- Emergency Electric Vehicle Towing Services: When your electric vehicle ran out of electricity during use
- Enhanced Medical Expenses: Up to $2,000 coverage per incident for each person injured by electric shock as a direct result of an electric vehicle battery leakage
From time to time, we have exclusive promotions on our insurance plans. Click here to view the latest deals. Policy terms and conditions apply.
