Buying a Tesla Model 3 in Singapore costs more than double the US
By Kyunghee Park
(Bloomberg) — Tesla Inc. is selling its Model 3 in Singapore at a starting price of about S$113,000 ($85,200), more than double the price in the U.S., as the electric vehicle maker tries to break into one of the world’s most expensive auto markets.
The Model 3 can cost as much as 155,000 Singapore dollars on the island when extras such as all-wheel drive are included, with the car taking about 12 to 14 weeks to deliver, according to Tesla’s Singapore website, which went live this week. An entry-level Model 3 costs about $38,000 in the United States.
Singapore is one of the most expensive places in the world to own a car, as buyers must pay excise and registration taxes that are more than double the market value of the vehicle. They must also bid for a limited number of car ownership permits auctioned by the government, which allow drivers to own a car for a maximum of 10 years.
Once this so-called Certificate of Entitlement expires, owners must either apply for a new 10-year permit, export the car, or scrap it. Despite the yawning price difference, the price of a Tesla in Singapore without a COE is around S$49,800, depending on the engine power.
Singapore announced last year that it would phase out fossil-fuel vehicles by 2040 and encourage consumers to buy electric cars through additional incentives. The island nation has been relatively slow to introduce electric cars so far, and Tesla CEO Elon Musk said on Twitter in early 2019 that the government would not welcome this.
In addition, Hyundai Motor Group is building an innovation center in Singapore that will be able to produce 30,000 electric vehicles annually by 2025. At the facility, Hyundai will also work on developing artificial intelligence, big data and other technologies to improve its manufacturing processes.
Tesla has begun exporting Model 3 sedans made at its factory on the outskirts of Shanghai to countries in Europe and Asia. The company’s Shanghai factory – its first outside the U.S. – opened for local deliveries to China in early 2020. Tesla sells its base Model 3 sedan in China starting at 249,900 yuan ($38,800).
© 2021 Bloomberg L.P.
