With effect from 3 September 2026, the Land Transport Authority (LTA) will be adjusting the Heavy Vehicle Zero Emissions Scheme (HVZES) by reducing the incentive quantum from $40,000 to $15,000 for lighter zero-tailpipe emission heavy vehicles, i.e. vehicles with a Maximum Laden Weight (MLW) of more than 3,500kg and up to 7,000kg. This ensures that the scheme remains fit-for-purpose as more models of lighter zero-tailpipe emission heavy vehicles are now available in the market and the cost differentials between these heavy vehicles and their internal combustion engine (ICE) equivalents have narrowed.
2. The HVZES was introduced in January 2026 as a three-year scheme till 31 December 2028 to support the decarbonisation of heavy vehicles by narrowing the gap in ownership costs between zero-tailpipe emission heavy vehicles and their ICE equivalents. The uptake of zero-tailpipe emission heavy vehicles[1] has been encouraging since the commencement of the HVZES in January 2026. The proportion of newly registered heavy vehicles that are zero-tailpipe emission vehicles, in particular electric heavy vehicles, has increased, from less than 1% in 2025 to around 30% in July 2026. Uptake has been particularly strong among lighter heavy vehicles, with zero-tailpipe emission vehicles accounting for 55% of new registrations in this segment in July 2026.
3. The revision to the HVZES incentive quantum is summarised in Table 1. The $40,000 incentive will continue to apply to heavier zero-tailpipe emission heavy vehicles with MLW of more than 7,000kg, as the cost differential with their ICE equivalents remains significant.
Adjustments to the Heavy Vehicle Zero Emissions Scheme
Table 1: Revised HVZES Incentive Quantum
Zero-Tailpipe Emission Heavy Vehicle |
HVZES Incentive |
Applicable Vehicles |
MLW > 3,500kg and ≤7,000kg, where the vehicle requires a COE |
$15,000 |
COEs obtained from the first September 2026 bidding exercise onwards |
MLW > 3,500kg and ≤7,000kg, where the vehicle does not require a COE (e.g. school buses) |
$15,000 |
Vehicles registered on or after 3 September 2026 |
MLW >7,000kg |
$40,000 (no change) |
All vehicles |
4. The incentive will continue to be disbursed in three tranches over two years, as illustrated by the disbursement schedule in Table 2 below.
Table 2: Disbursement Schedule of the Revised HVZES Incentive
Milestone
|
Disbursement Amount for Zero-Tailpipe Emission Heavy Vehicles |
|
MLW > 3,500kg and ≤ 7,000 kg |
MLW > 7,000 kg (no change) |
|
Vehicle Registration |
$5,000 |
$13,000 |
First Anniversary |
$5,000 |
$13,000 |
Second Anniversary |
$5,000 |
$14,000 |
Total |
$15,000 |
$40,000 |
5. Zero-tailpipe emission heavy vehicles registered using COEs obtained before the first September 2026 bidding exercise will continue to receive the $40,000 incentive regardless of their MLW.
6. The HVZES will continue to be available until 31 December 2028.
[1] Heavy vehicles include heavy goods vehicles, buses, and goods-cum-passenger vehicles.
