Heads up, cars are set to cost more in Singapore in 2024, thanks in part to the revised Vehicular Emissions Scheme (VES) standards.
The new year comes new rules, specifically in the Vehicular Emissions Scheme (VES) department. And, as you might have guessed, this means a shift in car prices.
The highlight of this new change is the trim in rebate for cars in the A2 band – a drop from S$15,000 to a more modest S$5,000.
Revised VES Rebates (2024)
| VES Band | Rebate or Surcharge |
| A1 | $25,000 Rebate |
| A2 | $5,000 Rebate (reduced from $15,000 previously) |
| B | $0 |
| C1 | $15,000 Surcharge |
| C2 | $25,000 Surcharge |
What is the Enhanced Vehicular Emissions Scheme (VES)?
For those eyeing a new EV, don’t have the assumption that they’re all under the A1 Band.
The current VES system has been enhanced with increased rebates and higher surcharges. It is now based on a vehicle’s carbon dioxide (CO2) emission, plus emissions of 4 pollutants:
- Hydrocarbons (HC)
- Carbon monoxide (CO)
- Nitrogen oxides (NOx)
- Particulate matter (PM)
The pollutant with the highest emission value (i.e. the worst-performing pollutant) determines your vehicle’s band and its corresponding VES rebate or surcharge.
Unfortunately, if your car happens to use a port-fuel injection engine, and it does not have a PM value, it will be automatically assigned the maximum VES surcharge band (Band C2). This is regardless of the car’s emissions of the other 4 pollutants.
Those wanting to register an EV or PHEV vehicle, an emission factor of 0.4g CO2/Wh will be applied to its electricity energy consumption to rate its CO2 emission.
A Handy Chart To Explain What’s Above
| VES Band | Rebate or Surcharge | CO2 (g/km) | HC (g/km) | CO (g/km) | NOx (g/km) | PM (mg/km) |
| A1 | $25,000 | A1 ≤ 90 | A1 ≤ 0.020 | A1 ≤ 0.150 | A1 ≤ 0.007 | A1 = 0.0 |
| A2 | $5,000 (Formerly $15,000) | 90 < A2 ≤ 125 | 0.020 < A2 ≤ 0.036 | 0.150 < A2 ≤ 0.190 | 0.007 < A2 ≤ 0.013 | 0.0 < A2 ≤ 0.3 |
| B | $0 | 125 < B ≤ 160 | 0.036 < B ≤ 0.052 | 0.190 < B ≤ 0.270 | 0.013 < B ≤ 0.024 | 0.3 < B ≤ 0.5 |
| C1 | $15,000 Surcharge | 160 < C1 ≤185 | 0.052 < C1 ≤ 0.075 | 0.270 < C1 ≤ 0.350 | 0.024 < C1 ≤ 0.030 | 0.5 < C1 ≤ 2.0 |
| C2 | $25,000 Surcharge | C2 > 185 | C2 > 0.075 | C2 > 0.350 | C2 > 0.030 | C2 > 2.0 |
What does this mean for prospective buyers? Well, with a S$10,000 cut in the rebate, it’s only logical that car prices will climb in response. If you’re planning to buy a new car, it might be time to revisit your budget.
Another update, albeit less talked about but equally significant, is the shift to the Worldwide Harmonised Light Vehicles Test Procedure (WLTP) as the sole adjudicator for measuring passenger car emissions in Singapore.
Starting 1 January 2024, this new test cycle is a bit more stringent than its predecessors, the New European Driving Cycle (NEDC) and Japanese Driving Cycle (JC08), offering a more realistic measure of on-road emissions.
With the WLTP comes a reshuffling of cars into new VES bands, impacting the rebates or surcharges they’ll attract.
Take, for instance, popular models like the Mazda 3, and even entry-level premium models like the BMW 216i. These cars are moving from the rebate-friendly A2 band to the neutral band B, meaning no more rebates or surcharges.
On the flip side, some ICE models are shifting from the neutral band B to the not-so-friendly C1 band, which comes with a hefty S$15,000 surcharge. This includes cars like the BMW 318i and the Suzuki Jimny, among others.
One of the more notable impacts of these new VES standards is on Mitsubishi. Its official distributor in Singapore, Cycle & Carriage (C&C), has hit the brakes on selling new Mitsubishi models for 2024. The reason? The VES changes and emissions testing standards have pushed these models out of competitive pricing.
Car buyers in Singapore are in for an interesting ride in 2024.
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