The 10-Year Question: Can an Ageing EV Survive a COE Renewal in Singapore?

As Singapore's car population ages, a critical question is emerging for the growing number of electric vehicle (EV) owners: does it make financial sense to keep an EV on the road beyond its initial 10-year lifespan? With significant changes to the PARF (Preferential Additional Registration Fee) rebate system making COE renewal a more attractive option for all car owners, the longevity of EVs is now under intense scrutiny.

While many new EVs come with impressive battery warranties — often spanning eight years or 150,000km — the reality of owning an ageing electric car is fraught with uncertainty. Unlike their internal combustion engine (ICE) counterparts, where a decade of service is commonplace, the long-term viability of older EVs is largely unknown, due to rapid technological advancements and concerns over battery degradation.

The Smartphone Analogy

Industry observers liken the current generation of EVs to early-generation smartphones. Models from just a few years ago can feel technologically obsolete compared to the latest releases, which boast longer range, faster charging speeds, and more refined software. An EV with a significantly degraded battery may offer reduced driving range and slower charging speeds, undermining the ownership experience and making it a difficult sell on the used car market without a costly battery replacement.

Carmakers typically step in when a battery's state of health dips below 70 per cent. For a 450km-range EV, losing 25 per cent of capacity means ending up with a car that cannot travel more than 340km and takes longer to charge — a meaningful deterioration in everyday usability.

The Cost of Keeping On

The cost of keeping an older EV on the road extends beyond the battery itself. The road tax for cars with a renewed COE increases annually, peaking at a 50 per cent surcharge from the 15th year onwards. For a typical 100kW EV, this means the annual road tax could climb from an already substantial $1,502 to over $1,900 — a significantly steeper increase than the equivalent for a 1.6-litre petrol car, which rises from $744 to $1,116 over the same period.

The availability of after-sales support is another crucial factor. As new EV brands continue to enter the Singapore market, there is no guarantee that all of them will remain in the long run. Owners of cars from defunct or departed brands could face significant challenges in finding spare parts and qualified technicians — a cautionary tale illustrated by the collapse of American EV maker Fisker in 2024, which left owners without software support or service networks.

For now, the consensus is that EVs from established brands with a strong local presence — such as BYD, Tesla, and those from legacy automakers like BMW and Toyota — are a safer bet for long-term ownership. As the technology matures and the industry stabilises, the prospect of giving an old EV a new lease on life with a fresh COE may become a more predictable and financially viable option for the average Singaporean motorist.