Toyota is still second to BYD in Singapore Almost 14 Months in a Row

Last Updated on: 3rd July 2025, 10:12 am

SINGAPORE — Just minutes before I left Singapore from its beautiful Changi International Airport, a former Nissan colleague called to tell me, “I predict over 500 units.” Naturally, this is an educated guess, and I do not claim that this will happen until the reports are actually out, usually after the first week of the month. The call, however, sort of confirms what we had just discussed over lunch — the likelihood that in the consolidated June car sales reports from the Singapore Land Transport Authority (LTA), BYD will still be leading Toyota in terms of both sales and importation.

From January to May of this year, BYD sold 3,002 vehicles, capturing a significant 20 percent of Singapore’s total car sales.  Toyota followed with 2,050 units, while Tesla reported a paltry 535 units. Take the statistics back just two years ago, and BYD would probably be in last place after every Japanese and European marque. Toyota has been second to BYD since early 2024.

From zero to hero

BYD’s rise has been nothing short of meteoric.

In 2024, the brand made history by becoming the best-selling car brand in Singapore for the entire year, a remarkable feat for a Chinese EV marque. It registered a staggering 6,191 units, representing an astounding 337% increase from the 1,416 units sold in 2023. This impressive growth secured BYD a commanding 14.4% market share, decisively outpacing Toyota, which recorded 5,736 units, and Tesla, with 2,384 units in the same period.

Reports from the Singapore Strait Times and China Global South both confirm that BYD’s momentum since January of 2024 has only intensified into 2025.

Several key factors underpin BYD’s extraordinary growth. First is the accelerating adoption of electric vehicles in Singapore. BYD is perfectly positioned to capitalize on the nation’s increasing commitment to electrification, by distance and by model range. Singapore’s favorite, the BYD Atto 3, offers compelling value and attractive pricing, especially when considering the notoriously high cost of car ownership in Singapore.

This Certificate of Entitlement (COE) that gives permission to Singaporeans to own a car is extremely pricey — oftentimes more expensive than the car. But EVs enjoy one or the other kind of incentive in the island nation. For instance, government incentives aimed at promoting EV adoption, offering significant tax breaks of up to S$40,000 for EVs, alongside continuous efforts to expand the charging infrastructure, have created a highly conducive environment for EV manufacturers like BYD.

This competitive pricing, coupled with the long-term savings associated with EV ownership, such as reduced fuel and maintenance costs, resonates deeply with Singaporean buyers.

Not second best anymore

Beyond pricing, the perception of “made-in-China” technology has undergone a significant positive shift. The days when Chinese products were viewed as inherently “second-best” are largely over, replaced by a growing trust in the quality and technological advancements of Chinese brands. Tech-crazy Singapore is still the most dynamic (meaning they frequently replace gadgets) market outside of the US for Chinese-made electronics like iPhones and DJI drones.

BYD’s aggressive overseas expansion strategy, with Singapore serving as a crucial foothold, has also played a vital role. The company has invested in a robust dealership network and established showrooms in highly accessible locations, including prominent financial districts, making the purchasing process remarkably convenient for consumers. This pervasive presence ensures that “you don’t go to a BYD, BYD comes to you,” as one analyst aptly put it.

And a silent brand building campaign? The integration of BYD electric buses into Singapore’s public transport system and a strategic partnership with ride-hailing giant Grab, which plans to expand its EV fleet with up to 50,000 BYD vehicles across Southeast Asia, further enhance the brand’s visibility and solidify its ubiquitous presence.

Play catchup?

The question then arises: can Toyota’s hybrids catch up?

While Toyota remains a formidable player globally and its hybrids are undeniably popular in many markets due to their fuel efficiency and reliability, Singaporeans presents a distinct challenge. The government’s strong push towards full electric vehicles through substantial incentives heavily favors pure EVs over hybrids.

While cleaner petrol-hybrid cars can still qualify for rebates, these are significantly smaller, capping at S$5,000, in contrast to the much larger subsidies available for battery electric vehicles. This disparity in incentives directly influences consumer purchasing decisions, steering them towards the more heavily incentivized EV options.

Recent data indicates that electric vehicle adoption in Singapore reached a new high in the first three months of 2025, with battery EVs accounting for 40.2% of total car registrations, up from 33.6% in 2024 and 18.1% in 2023. This rapid acceleration suggests a clear preference for full EVs, largely driven by the financial benefits or lack of range anxiety.

Let’s not gloss over the truth that Toyota continues to offer a strong lineup of hybrid vehicles. The company has, in some instances, even delayed its broader EV plans to prioritize the output of popular gas-powered SUVs in other markets. This strategic focus, while understandable from a global perspective, may leave it vulnerable in markets like Singapore, where the policy landscape and consumer sentiment are unequivocally tilting towards pure electric mobility.

Unless Toyota significantly pivots its Singapore strategy to offer more competitive and compelling battery electric vehicle options that can rival BYD’s pricing and value proposition, it faces an uphill battle in reclaiming its top position in a market that has decisively embraced the electric future.