The private car population in Singapore has declined to its lowest point since 2019, influenced by the escalating costs of vehicle ownership. As a result, a significant number of residents are opting for alternatives such as leasing, car-sharing, and ride-hailing services. At the end of June, private cars made up 79% of Singapore’s total car population, dropping from 82.5% in 2021. Meanwhile, rental vehicles achieved a record high, accounting for 14.9% of the total car population.
This shift in transportation preferences is largely attributed to the sustained high premiums for the Certificate of Entitlement (COE), which have substantially increased the cost of owning a car. As owning a private vehicle becomes more financially burdensome, many residents are reevaluating their transportation options.
The increasing demand for rental vehicles has spurred leasing companies to expand their fleets to accommodate the growing interest. This trend reflects a broader move towards more flexible and cost-effective transportation solutions, particularly as the expenses associated with car ownership continue to rise.
Moreover, an increasing number of motorists in Singapore are turning to public transport and shared mobility services to manage their monthly expenses more efficiently. These alternatives not only offer financial relief but also provide convenience, catering to the evolving needs of urban commuters.