How has the rental car fleet in Singapore reached record numbers?

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Record Rental Car Fleet Driven by High Ownership Costs and Shifting Preferences

Singapore's rental car fleet has surged to a record high, with 97,567 rental vehicles on the road as of June. This figure represents a significant increase, with rental cars now constituting 14.9 per cent of the total car population, a notable rise from 10.5 per cent in 2021. This trend is largely attributed to the prohibitive cost of car ownership, making leasing a more financially viable option for many.
Escalating Ownership Costs Drive Demand for Rentals

The cost of owning a private car in Singapore has become increasingly burdensome, primarily due to the Certificate of Entitlement (COE) premiums. These premiums, which are mandatory for vehicle registration, have fluctuated significantly, ranging from S$65,010 to S$116,002 in 2024 and even higher in subsequent years, reaching between S$102,009 and S$130,889 in 2026. For individuals who drive only occasionally, transport economist Walter Theseira notes that opting for a rental car presents a more sensible financial decision compared to the substantial outlay required for purchasing a vehicle.
Evolving Transportation Landscape and Consumer Behaviour

The demand for rental vehicles is experiencing consistent growth, as indicated by Adrian Lee, president of the Vehicle Rental Association. This increased demand is also fueled by younger demographics who have come to accept short-term rentals as a legitimate transportation choice. Furthermore, some consumers are leveraging leasing as a temporary solution while awaiting a potential decrease in COE premiums before committing to a car purchase. Companies like Sime Darby Auto Selection have responded by expanding their fleets, with Sime Darby increasing its own by 10 per cent over the past year to approximately 600 vehicles.
Impact of Regulatory Changes and Shared Mobility

The rise in rental car numbers is also influenced by regulatory measures and the growing popularity of shared mobility. A three-year lock-in period, implemented in February 2025 for business-owned ride-hailing vehicles, restricts their sale or conversion to private cars. This policy, designed to ensure a stable supply for ride-hailing services, may have indirectly contributed to a slight decrease in rental cars used for chauffeured services, as such vehicles slipped from 62,092 to 61,250 over a specific period. Concurrently, car-sharing platforms, such as Tribecar, are playing an increasing role in the broader rental ecosystem.

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How has the rental car fleet in Singapore reached record numbers?

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