55% of Singapore consumers plan to purchase EVs
Environmental concern is the top reason for buying electric vehicles.
More than half of Singapore consumers looking to buy a car in the next year are planning to purchase an electric vehicle (EV), according to the Ernst & Young Mobility Consumer Index.
The 55% of Singaporeans looking into buying an EV is higher than the 41% recorded globally and the 21% in November last year. 66% of global and Singapore consumers and 91% amongst those planning to buy an EV are willing to pay a premium.
The survey also revealed that the environment is the top reason for their EV purchase, with 78% of global and 80% of Singapore consumers saying the COVID-19 pandemic raised awareness and concerns about environmental issues.
At least half of those surveyed feel that they have the responsibility to reduce their personal environmental impact, with 54% of global and 60% of Singapore consumers saying buying an EV is one way to achieve it.
EY Global Transport Leader Tony Canavan said that they are seeing the sales of EVs gaining ground, despite the Singapore government having frozen vehicle growth rates for passenger vehicles for at least the next six months due to COVID-19.
“Most consumers are willing to pay a premium for an EV, either due to environmental concerns or an understanding that the long-term costs will likely be lower. This is a fundamental shift in attitudes, which is ultimately beneficial for consumers and the planet,” he said.
“The government has also given a clear direction to encourage EV adoption through its announcement in March 2021 that all new car and taxi registrations will need to be of cleaner-energy models from 2030, and that all vehicles will need to run on cleaner energy by 2040,” Canavan added.
The survey also showed concerns about charging infrastructures and features of the EV market amongst those not looking to buy an EV.
Benjamin Chiang, EY Asean and Singapore Government and Public Sector leader, said many of those who adopted EV in Singapore are homeowners and had their own charging points.
“The Singapore government aims to deploy 60,000 EV charging points across the country by 2030. Assuming the car population remains constant and a third are EVs, this translates into a ratio of about five EVs to every charging point in 2030. There are lingering concerns whether this is sufficient to meet demand,” Chiang said.
The survey conducted in June involved more than 9,000 respondents from 13 countries, including 300 from Singapore.