Govt extends vehicle schemes to boost EV adoption; hybrids will no longer get rebates

Moves to spur motorists to go electric

- Lee Nian Tjoe

Two schemes to encourage the adoption of electric vehicles (EVs) have been extended and revised to provide lower rebates.

The Vehicular Emissions Scheme (VES), which is meant to nudge drivers into opting for cars with lower emissions, will be extended for two years from Jan 1, 2026, to Dec 31, 2027. The scheme's criteria will be tightened, with petrol hybrid cars no longer getting any rebates.

Surcharges will be raised for cars with high exhaust emissions.

Those that fall into the most polluting banding under the VES will incur a surcharge of $35,000 in 2026, up from $25,000 currently. In 2027, the surcharge will be raised to $45,000.

Separately, the EV Early Adoption Incentive (EEAI) will be extended for a year and discontinued in 2027, said the Land Transport Authority (LTA) and National Environment Agency (NEA) on Sept 8. Both incentive schemes were due to expire on Dec 31, 2025.

The rebate provided under this scheme will be halved from $15,000 to $7,500.

This means that from Jan 1, 2026, the maximum combined rebate for EV buyers from both schemes will be $30,000, down from the current $40,000. This will drop to $20,000 in 2027, after the early adoption incentive ends.