In Singapore, the private car population has declined to its lowest level since 2019. This decrease is primarily due to the escalating costs associated with car ownership, which are encouraging more residents to explore leasing options, car-sharing, and ride-hailing services instead.
As of the end of June, private cars constituted 79% of the total car population in Singapore, a drop from 82.5% in 2021. In contrast, rental vehicles have surged to a record high, now making up 14.9% of the car population. Experts in the automotive industry largely attribute this shift to the persistently high Certificate of Entitlement (COE) premiums that have made owning a car substantially more expensive.
The impact of high COE premiums has been significant enough to alter consumer behavior, with many residents opting for rental services over ownership. The increased demand for rental cars has led leasing companies to expand their fleets to accommodate this growing interest.
Additionally, many Singaporeans are turning to public transportation and shared mobility services as cost-effective alternatives. By utilizing these services, they aim to reduce their monthly expenses, avoiding the financial burden of car ownership in a city where owning a vehicle has become a costly proposition.
