SINGAPORE – OCBC Bank is broadening the accessibility of electric vehicles (EVs) through significant enhancements to its Eco-Care Car Loans scheme. As part of its ongoing efforts to support sustainable transportation, the bank now includes used EVs up to 10 years old, expanding beyond the previous limit of three years. This move aligns with the growing market presence of older electric vehicles and aims to facilitate a broader adoption among consumers looking for affordable, eco-friendly transportation options.
The OCBC Eco-Care Car Loan scheme, first introduced in 2021, was developed to encourage the uptake of electric vehicles by offering attractive financial terms. The loan features a preferential interest rate of 2.48% per annum, which is 0.3% lower than the rates offered for internal combustion engine (ICE) vehicles. This lower interest rate provides a substantial incentive for buyers to consider EVs over traditional petrol or diesel cars.
With the inclusion of older used EVs, OCBC is responding to a growing segment of the market. As more used electric vehicles become available, potential buyers who might have found new EVs prohibitively expensive now have a wider range of options. This change is expected to spur further growth in Singapore’s EV market, which has already seen a significant increase in adoption.
- Extended Age Limit for Eligible Vehicles: Previously restricted to new EVs and used EVs less than three years old, the scheme now includes used EVs up to 10 years old.
- Preferential Interest Rate: Loans for EVs come with an interest rate of 2.48% p.a., offering a financial advantage over ICE vehicle loans.
- Support for a Broad Range of EVs: The scheme now accommodates a wider variety of electric vehicles, including those from burgeoning Chinese brands like BYD, which have become increasingly popular in Singapore.
According to data from the Land Transport Authority (LTA), the number of EVs registered in 2023 surged by 50.5% year-over-year. This growth elevated the adoption rate of EVs to 18.1% of total car registrations in 2023, a notable increase from 11.7% in 2022. This upward trend highlights the shifting consumer preferences towards more sustainable and environmentally friendly transportation options.
OCBC’s own data mirrors this growth. The bank reported a more than sixfold increase in the uptake of Eco-Care Car Loans in 2023 since the scheme’s inception. The value of these loans has seen an average annual growth rate of 170%, indicating robust consumer interest and the increasing affordability of EVs.
Impact of OCBC’s Financing on EV Adoption: A Closer Look
| Year | EV Loans Issued | % of Total Car Loans | % Increase in EV Loans |
|---|---|---|---|
| 2021 | Initial Offering | 10% | – |
| 2022 | Significant Growth | 35% | 250% |
| 2023 | Surge in Demand | Nearly 50% | Over 40% |
Sunny Quek, Head of Global Consumer Financial Services at OCBC, reflects on the evolution of consumer attitudes towards electric vehicles. “Three years ago, when we introduced the OCBC Eco-Care Car Loans, consumer interest in EVs was relatively low, and knowledge about EVs was not as widespread,” he said. “We wanted to do our part to get the momentum going by providing that additional incentive, in the form of a preferential interest rate for OCBC Eco-Care Car Loans. It has helped to reduce the barriers to entry for owning EVs.”
Three years on, the market has matured significantly. “The EV market has become more mature and demand has been increasing. More brands and used EVs are entering the market, making them more affordable,” Quek added. “Correspondingly, OCBC Eco-Care Car Loans have seen a strong growth trajectory. By expanding the loan to all used vehicles up to 10 years old, we will be able to meet this demand and support more consumers who want to transition to EVs. This is in line with our corporate strategy, where sustainability is a key pillar.”
As Singapore continues to advance its sustainability goals, initiatives like OCBC’s expanded Eco-Care Car Loan scheme play a pivotal role in promoting environmental stewardship through cleaner, greener transportation options. With more affordable options available, the adoption of electric vehicles is poised for even greater expansion, promising a cleaner and more sustainable future for all.
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