SINGAPORE – The cash incentive to encourage business owners to switch to electric options for lighter heavy goods vehicles and buses will be cut from $40,000 to $15,000 from Sept 3, 2026.

The revision applies to vehicles with a maximum laden weight of between 3,500kg and 7,000kg. This category includes commercial delivery trucks such as the BYD T35 and Mitsubishi Fuso eCanter.

The Land Transport Authority (LTA) said on Sept 2 that the reduction under the Heavy Vehicle Zero Emissions Scheme comes amid a growing availability of electric models and a narrowing price gap with conventional diesel-powered equivalents.

Adoption of electric heavy vehicles has accelerated since the scheme was introduced in January, the LTA added.

In July 2026, electric vehicles accounted for 55 per cent of all new lighter heavy vehicle registrations, LTA said. Overall, they made up around 30 per cent of all heavy vehicle registrations that month.

As at July 31, there were 8,777 electric heavy vehicles, making up 5.5 per cent of Singapore’s commercial vehicles and buses. This was up from 7,188, or 4.5 per cent, at the end of 2025.

The reduced $15,000 cash incentive applies to qualified vehicles registered using certificates of entitlement (COEs) obtained from the first September 2026 bidding exercise onwards. The amount will be disbursed in three equal annual instalments, starting at registration.

As for zero-emission heavy vehicles with weight rating above 7,000kg, they will continue to qualify for the $40,000 incentive. LTA said that for such vehicles, the electric option still costs significantly more than the diesel-powered equivalents.

The scheme will run until Dec 31, 2028. It was announced in March 2025, alongside the Electric Heavy Vehicle Charger Grant, to nudge businesses to go electric and contribute towards Singapore’s decarbonisation goals.

Chief executive Ryan Woon of SwiftEco, a distributor of electric trucks, said that the reduced $15,000 incentive will prompt some businesses to reconsi...