As demand for Chinese EVs grows, COE premiums could rise in the short to medium term: Observers


The growth of the Chinese EV market here comes as more drivers are willing to buy these other vehicles, according to industry experts. Additionally, it comes in the wake of the European Union and the US enacting a higher trade tariff on electric vehicles. &nbsp,

For example, Vantage Automotive, which sells BYD, Ford and Peugeot vehicles, marked an increase in the sales of its EV vehicles- from about 1, 400 models the whole of next year, compared with more than 2, 000 units so far this year. &nbsp,

According to the company’s managing director Anthony Teo, one of the factors contributing to the growing acceptance are the government incentives, which offer up to S$ 15, 000 ( US$ 11, 100 ) off new EVs.

” There is a common wrong notion that an EV &nbsp, is quite expensive. But with the government motivation, in reality, the Vehicle compared to an internal combustion engine automobile, is very similar in pricing”, said Mr Teo. &nbsp,

To get more of the business, companies, including BYD, have been introducing more Category A cars, or those 1, 600cc and above with power not exceeding 130bhp. These cars control smaller COE rates.

More Cat A EVs are being introduced, according to Mr. Teo, which may give EV companies an incentive to ensure that their designs are reasonably priced and more likely to draw in customers. &nbsp,

He added that this might appeal to those who are reluctant to purchase for vehicles because of their cost.