Electric Vehicle Interest in Singapore Declining as Consumer Rationality Strengthens

Electric vehicle trends in several developed nations are entering an adjustment phase. An EY-Parthenon study in the Mobility Consumer Index (MCI) 2025 report noted that consumer interest in electric vehicles in Singapore fell from 73 per cent to 58 per cent.

Although this percentage remains above the global average of 43 per cent, the decline signals a shift in preferences. Globally, 50 per cent of respondents stated they would likely return to purchasing internal combustion engine vehicles. The report assessed that consumers are increasingly weighing the total cost of ownership and convenience factors in daily use.

Infrastructure and Convenience Considerations

In Singapore, 56 per cent of respondents expressed concerns about the quality of public chargers and their interoperability. The ratio of public electric vehicle charging stations has reached 1:3, but consumers believe quantity does not guarantee service quality.

This situation provides important lessons for Indonesia, which is pursuing accelerated electrification. Based on data from the Indonesian Automotive Industries Association, electric vehicle sales throughout 2025 reached 103,931 units. However, the number of active charging stations by December 2025 was only 4,778 units across 3,093 locations, or a ratio of approximately 1:21. This figure remains below the ideal recommendation of 1:10.

The disparity between vehicle growth and infrastructure has the potential to affect user comfort levels, particularly as mobility increases.

Depreciation and Battery Costs

Beyond infrastructure, resale values and potential battery replacement costs are also considerations. The battery is the most expensive component in an electric vehicle and can impose a substantial financial burden once warranty coverage expires.

In Indonesia, these dynamics are reflected in the movement of used electric vehicles in the secondary market. Through automotive marketplace platforms such as OLX Indonesia, it is evident that consumers increasingly consider depreciation before making decisions.

One example can be seen in the Hyundai Ioniq 5. The model launched in 2022 with prices ranging from IDR 718 million to IDR 829 million is now widely offered on the used market at between IDR 350 million and IDR 480 million for 2022–2023 production units. This movement illustrates how technological development and concerns about battery durability affect valuation.

Used Vehicle Market as an Indicator of Caution

The used vehicle market often reflects rational consumer calculations. Beyond considering the latest technology, buyers also assess price stability and potential long-term benefits.

“The used vehicle market tends to reveal consumer reality more quickly than the new vehicle market. Technology certainly develops rapidly, but consumer behaviour will change if it seems rational. As long as friction persists in usage, consumers will naturally prefer what is practical. This is clearly evident in the used vehicle market,” said Co-CEO and Director of OLX Indonesia, CK Yap.

This statement suggests that the transition towards electric vehicles requires comprehensive ecosystem readiness. Adequate infrastructure, cost certainty and stable resale values are important factors in building consumer confidence.

For Indonesia, dynamics in Singapore provide a reflection that the acceleration of electrification must be balanced with a sustainable strategy. Sales growth alone is insufficient without supporting consumer comfort and economic certainty.