Photo: Brooke Crothers/Forbes
Tesla is taking the next steps to enter the Singapore market. The company has received permission to sell its electric vehicles in the country. The manufacturer's vehicles have received the best A1 Vehicular Emissions Scheme banding, which gives them a price advantage over other vehicle manufacturers.
Last week, Tesla Model 3 Standard Range and Performance appeared on the Land Transport Authority's fuel economy comparison site. It lists vehicles from manufacturers or their authorized agents who register a vehicle for sale in the country.
According to the website, both Tesla Model 3 variants received the best A1 Vehicular Emissions Scheme (VES) banding. This will allow for a tax rebate of $25,000, as well as a promotion for early adoption of electric vehicles, which provides another rebate of up to $20,000, according to The Straits Times.
The A1 VES banding came as a surprise to other automakers. For example, the Porsche Taycan, Audi e-Tron and Jaguar I-Pace received A2 VES, which means they can expect to receive a tax rebate of $15,000. It also means that Tesla will become a better buy than other electric vehicles sold in Singapore.
The purchase price for all cars in the country is very high. Based on an estimated pre-tax value of $44,000 (approximate value) for the Model 3 Standard Range and $62,000 for the Model 3 Performance, these two vehicles could be valued for sale in Singapore between $145,000 and $215,000 respectively. Such a high cost is formed after taking into account additional registration fee, excise duty, registration fee, goods and services tax, certificate of entitlement, road tax for the first year and profit margin. Nevertheless, even with this calculation, the cost of Model 3 will be cheaper than the cost of a gasoline Toyota Camry.
"These prices are feasible based on the estimated OMVs," said one motor trader. "But how much they will eventually depend on how much profit Tesla wants to make - not forgetting that it intends to build its own charging infrastructure here, which isn't cheap."
In mid-2020, Tesla opened recruiting for core business development positions in Singapore. After the key sales and customer service positions were opened, Tesla continued its employee search by announcing the recruitment of a ‘Charging Manager - Charging Infrastructure’ in Singapore. The creation of a branded network of charging stations is, for obvious reasons, one of the critical steps in the company's entry into the market. This will be Tesla's second attempt to enter the Singapore market.
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