The Land Transport Authority has cut the Heavy Vehicle Zero Emissions Scheme incentive from S$40,000 to S$15,000 for lighter zero-tailpipe emission heavy vehicles from 3 September 2026. LTA announced the change on Wednesday.
The lower sum applies to vehicles with a maximum laden weight of more than 3,500kg and up to 7,000kg. LTA said more models now sit in that band, and the gap with internal combustion equivalents has narrowed.
Heavier vehicles keep S$40,000
Vehicles above 7,000kg still qualify for S$40,000. LTA said the cost gap with diesel equivalents in that class remains wide.
The cut is tied to how the vehicle is registered. Where a Certificate of Entitlement is required, the S$15,000 rate applies to COEs from the first September 2026 bidding exercise onwards. School buses and other vehicles that do not need a COE pick up the lower rate if they are registered on or after 3 September 2026.
Zero-tailpipe heavy vehicles registered with COEs obtained before that first September bidding exercise still receive S$40,000, regardless of laden weight.
How the money is paid
The incentive is still paid in three tranches over two years. For the lighter band the split is S$5,000 at registration, S$5,000 on the first anniversary and S$5,000 on the second, totalling S$15,000.
The heavier band is unchanged: S$13,000 at registration, S$13,000 on the first anniversary and S$14,000 on the second, totalling S$40,000.
Uptake since January
HVZES opened in January 2026 and runs until 31 December 2028. It covers heavy goods vehicles, buses and goods-cum-passenger vehicles.
LTA said the share of newly registered heavy vehicles with zero tailpipe emissions rose from less than 1 per cent in 2025 to around 30 per cent in July 2026. In the lighter heavy-vehicle segment, zero-tailpipe models accounted for 55 per cent of new registrations that month.
The scheme remains open until 31 December 2028.
