A new year sees the start of new rules and regulations, and for car buyers in Singapore, prices are set to go up even further with the implementation of revised Vehicular Emissions Scheme (VES) standards that officially came in action as of 1st January 2024.

There's only a couple of changes to the VES for 2024, but the most significant one is the reduction of the rebate for cars falling under the A2 band, which goes from SGD 15,000 (US$ 11,350) to SGD 5,000. This would affect a large majority of hybrid-powered cars, and a handful of internal combustion engine (ICE) and electric vehicles.

Revised VES for 2024

- A1: SGD 25,000 rebate
- A2: SGD 5,000 rebate (reduced from SGD 15,000 previously)
- B: Neutral (SGD 0)
- C1: SGD 15,000 surcharge
- C2: SGD 25,000 surcharge

It was earlier detailed how the reduced VES rebate will affect electric vehicles in Singapore when the amendments were announced in September 2023, but for buyers of hybrid and some internal combustion engine (ICE) cars, the implication is that with a SGD 10,000 reduction in the rebate, prices are set to go up in tandem as well.

Another less publicised, but no less significant, update to the VES is the implementation of the worldwide harmonised light vehicles test procedure (WLTP) as the sole testing procedure for emissions of passenger cars in Singapore starting from 1 January 2024.

The WLTP is a more rigorous test cycle that provides more realistic emissions results through a more representative simulation of on-road driving performance, and replaces the new European driving cycle (NEDC) and Japanese driving cycle (JC08) that was previously used here.

As a result, some models will be reclassified into new VES bands, and thus affecting the rebate or surcharge that they will receive. For example, some mass market cars, like the Mazda 3 and Nissan Qashqai, as well as entry-level premium cars like the BMW 216i Gran Coupe will be moved from band A2, which receives a SGD 5,000 rebate as mentioned earlier, to the neutral band B, where they will not get any rebates nor surcharges.

Some ICE models will also move from the neutral band B to band C1, where they will be hit with a SGD 15,000 surcharge. These include the BMW 318i, Peugeot 3008 and 5008, and the Suzuki Jimny, to name but a few.

A major victim of the new VES standards is Mitsubishi, as its official distributor here, Cycle & Carriage (C&C) has suspended sales of new Mitsubishi models for 2024.

C&C says that the changes in VES and emissions testing standards has resulted in models that will be uncompetitive in the market, and that it is planning for the reintroduction of the brand in 2025 with cars that will meet the enhanced and more stringent standards, such as the new Outlander SUV.