Written Reply to Parliamentary Question on Impact of Revisions to Vehicular Emissions Scheme Rebates and EV Early Adoption Incentive on COE Prices

Ms Poh Li San asked the Acting Minister for Transport 

a.      what are the Ministry’s considerations in (i) lowering rebates for Band A1 vehicles under the Vehicular Emissions Scheme (VES),  

b.      excluding VES rebates for hybrid vehicles and  

c.      ceasing the EV Early Adoption Incentive (EEAI) after 2026, in light of the pace of new electric vehicle (EV) and hybrid car ownership and the impact of already high COE prices.

Reply by Acting Minister for Transport Jeffrey Siow: 

1.      The Vehicular Emissions Scheme (VES) and Electric Vehicle (EV) Early Adoption Incentive (EEAI) were introduced to encourage adoption of cleaner-energy cars by narrowing the upfront cost gap between cleaner-energy and Internal Combustion Engine cars.

2.      When reviewing these schemes, the Land Transport Authority and National Environment Agency considered factors such as EV and hybrid car adoption rates, as well as the upfront and total cost of ownership across powertrains.

3.      The Member may wish to refer to my response to the Adjournment Motion on 22 September 2025 for more context.