The Land Transport Authority (LTA) announced it will cut the cash incentive for electric heavy vehicles (EHVs) with a maximum laden weight between 3,500 kg and 7,000 kg from S$40,000 to S$15,000, effective September 3, 2026. The change will apply to vehicles registered with Certificates of Entitlement (COEs) obtained from the first bidding exercise in September 2026 onward [1, 2, 3, 4].

Electric heavy vehicles above 7,000 kg will continue to receive the full S$40,000 incentive. The payout will be made in three equal annual installments starting from vehicle registration [1, 2, 3, 4].

The Heavy Vehicle Zero Emissions Scheme, which offers these cash incentives, was launched in January 2026 and is scheduled to run until December 31, 2028 [1, 2, 3, 4]. The LTA cited the wider availability of electric heavy vehicle models and a smaller price gap with diesel counterparts as reasons for scaling back the support [1, 2, 3, 4].

Electric heavy vehicles accounted for about 30% of all heavy vehicle registrations in Singapore in July 2026, with a 55% market share for the 3,500–7,000 kg segment [1, 2, 3, 4]. As of July 31, 2026, there were 8,777 electric heavy vehicles in Singapore, representing 5.5% of all commercial vehicles and buses, up from 7,188 (4.5%) at the end of 2025 [1, 2].

The cost of COEs for commercial vehicles has been rising, reaching S$90,002 in the latest August 19, 2026 tender—up from around S$72,190 in 2025 [1, 2]. Ryan Woon, CEO of SwiftEco, a distributor of electric trucks, said the reduced S$15,000 incentive "will prompt some businesses to reconsider their fleet refreshment plans as the cost of going electric is now higher." He warned that adoption of electric heavy vehicles could drop significantly, as most are in the 3,501 to 7,000 kg weight range [1, 4]. However, he also noted, "I expect the change to also lead to lower COE prices in the coming months, helping to soften the overall impact on businesses" [1].

The Electric Heavy Vehicle Charger Grant, which subsidizes up to half the installation cost of vehicle chargers capped at S$30,000, remains unchanged by the incentive reduction [3].

The next COE bidding exercise begins September 3, 2026, when the new cash incentive levels will take effect [1, 2].