The number of private cars in Singapore has now declined to its lowest point since 2019, with high vehicle ownership costs pushing more people towards alternatives like leasing, car-sharing, and ride-hailing. As of the end of June, private cars constituted 79% of the total car population in the country, a decrease from 82.5% in 2021. Meanwhile, rental vehicles have surged to a record 14.9% share, signifying a notable shift in how residents approach personal transportation.
This trend is largely attributed to the continually high Certificate of Entitlement (COE) premiums, which have made owning a car increasingly expensive. The COE system, unique to Singapore, requires car buyers to obtain a permit, adding considerable cost to car ownership. With these financial pressures, residents are exploring more economical options that offer the flexibility of car usage without the heavy financial burden.
In response to this growing demand for rental vehicles, leasing companies have been expanding their fleets to accommodate the shift. This expansion aligns with the increasing preference among Singaporeans to minimize their monthly expenses by opting for vehicles only when necessary, rather than shouldering the constant costs associated with owning a private car.
Furthermore, many residents are turning to public transportation or shared mobility services as practical solutions to navigate the city efficiently. These options provide a more cost-effective way to meet transportation needs without the long-term commitment of car ownership. As a result, the landscape of Singapore’s transportation is evolving, with shared and public transit modes becoming more integral to daily life.