SMRT Partners with DST Electric Vehicle Rental for an EV-Leasing Model

Singapore is moving forward with its mission to use environmentally-friendly electric vehicles and reduce greenhouse emissions by 2040. The government has announced that it will launch the EV Early Adoption Incentive (EEAI) model to increase the adoption of electric vehicles (EVs) and have all vehicles run on cleaner energy by the year 2040. Drivers and owners who buy fully electric cars and taxis will receive a rebate of up to 45 percent on the Addition Registration Fee.

SMRT, the leading multi-modal transport operator in Singapore, works with the Land Transport Authority and the government to improve customer journeys and provide sustainable urban mobility solutions to Singaporeans. Recently, Strides Transportation, a subsidiary of SMRT, announced that it signed a memorandum of understanding (MOU) with China’s DST Electric Vehicle Rental (Shenzhen) to provide EV services in the Singaporean region.

The Current Status of Electric Vehicle Services in Singapore

According to a study by the management consultancy Bain & Company, Singapore and other ASEAN member countries have lower adoption of EV vehicles. The reasons stated are the lack of EVs and underdeveloped charging infrastructure. The investment in the EV market is expected to reach US$6 billion (S$7.9 billion) by 2030. Singapore and other ASEAN member countries where fuel costs are soaring, investing in electric vehicles can be financially beneficial for drivers and car owners. Commercial fleet owners can invest more in developing EV charging infrastructure and save more money down the road.

Understanding the EV-Leasing Model by Strides and DST

SMRT’s Strides Transportation and China’s DST Electric Vehicle Rental will form a joint venture company to develop sustainable, cleaner urban mobility solutions for customers in Singapore. Under the joint venture, the two leading companies will provide end-to-end solutions using EVs.

Strides will establish commercial electric vehicle leasing solutions with the help of DST’sprocurement network and in-house fleet management solutions from China. DST is a known provider of EV operation and management services for logistics companies in China. It offers a range of after-market services through its offline and online platforms. Currently, DST offers services such as EV charging sites, maintenance stations, EV fleet repair and maintenance, insurance, and other auxiliary services. Strides and DST will work together to provide EV leasing solutions and after-market services to EV drivers in Singapore.

Ms. Zhang Hai Ying, founder, and CEO of DST said, “We are glad to cooperate with Strides, a well-known leading provider of vehicle leasing, chauffeur services, and sustainable urban mobility services in Singapore, to jointly promote the adoption of clean energy vehicles in Singapore and South-east Asia. We will jointly enable life-cycle management of new energy logistic vehicles, conduct promotion of commercial electric vehicles, and achieve the goal of building a green ecosystem with Strides in Singapore and South-east Asia.”

SMRT Chairman, Seah Moon Ming, commented on the company’s plan to adopt the EV model in the coming years, “Moving forward, in support of the Land Transport Master Plan 2040’s aim to have cleaner and greener vehicles for a more environmentally sustainable land transport sector, SMRT Taxis will move from our current 100% cleaner, hybrid standard taxi fleet to exploring suitable Electric Vehicle (EV) models.”

In April 2021, SMRT also partnered with energy utility company SP Group to build high-speed chargers around Singapore and give EV drivers and corporate customers access to them easily. The company is planning to launch a full fleet of electric taxis in the country by 2025.

Also Read: 8 Hidden Expenses When Buying Car

Conclusion

Singapore is a market ripe for EV adoption. Strides and DST will improve the EV infrastructure and support for electric vehicles owners. It is expected that with the establishment of Strides and DST joint venture, the leading transport operator, SMRT, will be able to bring sustainable transportation in Singapore and meet the government’s carbon neutrality goal in the coming years.