SINGAPORE, July 30 — Singapore’s private car population has fallen to its lowest level since 2019, while the rental fleet has reached a record as high ownership costs push some motorists towards leasing, car-sharing and ride-hailing.
There were 516,237 private cars on the road at the end of June, compared with 97,567 rental cars, according to Land Transport Authority data cited by The Straits Times.
Private cars still account for 79 per cent of Singapore’s 653,442 cars, down from 82.5 per cent in 2021.
Rental cars now make up 14.9 per cent of the total, up from 10.5 per cent in 2021, when there were 67,990.
The figures have raised questions about whether motorists are moving away from ownership, although the LTA said more indicators must be tracked before conclusions can be drawn about changing travel preferences.
These include public transport ridership, point-to-point journeys and the use of shared cars and bicycles.
Walter Theseira, a transport economist at the Singapore University of Social Sciences, said renting made financial sense for people who drive only occasionally, given the cost of buying a car.
Certificate of entitlement premiums, required to register vehicles in Singapore, have ranged from S$102,009 (RM323,500) to S$130,889 in 2026, compared with S$65,010 to S$116,002 in 2024.
Adrian Lee, president of the Vehicle Rental Association, said rental demand was growing, but operators remained cautious about expanding because of uncertainty over future COE prices.
Companies risk being left with expensive vehicles if premiums fall sharply after they add cars at higher prices.
Lee, who is also co-founder of car-sharing platform Tribecar, said short-term rentals had become an accepted transport option among younger people.
The number of self-drive rental cars rose from 33,765 at the end of 2025 to 36,317 in June.
Rental cars used for ride-hailing or chauffeured services slipped from 62,092 to 61,250 over the same period.
Lee said the decline may partly reflect a three-year lock-in period introduced in February 2025 for business-owned ride-hailing vehicles, which cannot be sold to individuals or converted into private cars during that time.
The LTA said the rule was intended to ensure a stable supply of vehicles for ride-hailing services.
Sime Darby Auto Selection, the Singapore leasing arm of Malaysian-owned Sime Darby, increased its fleet by 10 per cent over the past year to about 600 cars.
Managing director Christopher Chin said some customers were leasing while waiting for COE premiums to fall before buying a car.
Some former owners are also saving substantially by going without one.
Product engineer Gordon Tiang, 51, did not replace his car after its COE expired in 2025. He now uses ride-hailing services occasionally and saves about S$1,500 a month, partly for family holidays.
Tiang said he missed the convenience of driving to social gatherings and across the border to Johor Bahru.
Civil servant Joyce Lee, 45, and her husband gave up their family car in mid-2025 after deciding their sons, aged eight and nine, were old enough to rely on public transport.
After initially using car-sharing services for school trips, the family switched entirely to buses and trains, saving between S$1,500 and S$1,800 a month.
“It does mean having to wake up earlier to set off in the morning, but public transport has really worked out for us so far,” she said.
