EDB proposes big rebates to encourage plug-in hybrids
Christopher Tan, Straits Times 8 Feb 10;
EVEN as the wheels are in motion to get Singapore's maiden fleet of electric cars on the road, the Economic Development Board (EDB) is hoping that other 'green' vehicles will follow suit.
It is proposing that sizeable tax breaks be extended, for a start, to plug-in hybrids.
Plug-in hybrids are vehicles with combustion engines as well as motors powered by batteries which can be recharged via an electrical socket.
Typically, they can run on battery power for a far longer distance than ordinary hybrids, which have an electric engine charged by an internal combustion engine.
The batteries of the plug-in hybrids are recharged by the car's engine as well as its brakes.
Such plug-ins are seen as environmentally friendlier than ordinary hybrids, which are currently accorded a 40 per cent reduction in Additional Registration Fee (ARF) - the main car tax.
The Straits Times understands that the proposal is for plug-ins to be accorded the same tax break as the Energy Market Authority's fleet of trial electric cars, which are exempt from the ARF and Certificate of Entitlement.
An EDB spokesman would say only that the board is 'in the process of working on enhancing' the Transport Technology Innovation and Development Scheme.
Test cars brought into Singapore under the scheme wear blue-and-yellow number plates for research vehicles. Fleets in the past have included Daimler's hydrogen fuel-cell A-class cars; Honda Civic Hybrids used in a car-sharing scheme; and diesel cars running on a biodiesel blend.
As plug-in hybrids are not commercially available until next year or 2012, the EDB is said to be arranging for hybrids in Singapore to be converted into plug-ins.
Conversion typically involves changing and increasing the vehicle's battery pack, replacing the engine control unit and installing a plug-in point.
Prime Taxi, the only taxi company which has a fleet of hybrid cabs, has had preliminary talks with two companies which can do conversions: ST Kinetics and Delphi.
'We are keen to explore schemes that will help the environment,' said Prime Taxi managing director Neo Nam Heng. 'It does not always have to be the big companies which make a difference. A small operator like us can, too.'
ST Kinetics said it has been trying to promote plug-in conversions to vehicle manufacturers as well as fleet operators.
So far, it has delivered only one such vehicle: an aircraft tow tractor to Changi Airport.
ST Kinetics spokesman Gaius Ho said: 'For electric or hybrid vehicles to populate the city successfully, a large part has to start with the fleet owners.
'Hence tax incentives for such vehicles would need to be extended to fleet or transport operators.'
According to a recent report by British-based SupplierBusiness, plug-in hybrids will gain in popularity as governments the world over adopt stricter and stricter emission standards.
'Plug-in hybrids hold the promise of not only delivering very significant fuel economy gains over hybrids, but also hold out the possibility of very significant greenhouse gas reductions over the next 20 to 30 years,' the report said.
'A further important element to the growth of plug-in hybrids is their potential to reduce oil imports.'
On this front, Singapore has pledged to cut carbon dioxide emissions by 12 million tonnes by 2020. About two million tonnes of that will have to be cut from the transport sector, the largest carbon emitter after industry.
Some motor traders feel the most effective way of achieving this cut is to promote clean diesel vehicles and hybrids.
The Automobile Importer & Exporter Association of Singapore is lobbying to remove the ARF for hybrid vehicles and Euro 4 diesel commercial vehicles till the end of next year, when the Government is expected to announce a new carbon-based vehicle tax structure.
