From 1st January 2026, Singapore’s commercial vehicle landscape shifted with the introduction of the Heavy Vehicle Zero Emissions Scheme (HVZES). A $40,000 incentive from the Land Transport Authority (LTA) aimed at accelerating electrification across lorries, buses, and goods-cum-passenger vehicles. For fleet operators sourcing used trucks in Singapore, the scheme changes the math on your next heavy vehicle purchase, whether you are buying new, going electric, or weighing it against a pre-owned truck acquisition.
HVZES replaces the former Early Turnover Scheme for heavy commercial vehicles and applies to zero-tailpipe-emissions heavy goods vehicles and buses with a Maximum Laden Weight (MLW) exceeding 3,500kg. Owners who register a qualifying electric heavy vehicle between 1st January 2026 and 31st December 2028 receive $40,000, disbursed automatically in three tranches: $13,000 upon registration, $13,000 on the first registration anniversary, and $14,000 on the second.
- MLW must exceed 3,500kg, light commercial vehicles below this threshold do not qualify for HVZES.
- The vehicle must have zero tailpipe emissions. Electric heavy goods vehicle and electric buses qualify; hybrids do not.
- Registration must fall within 1 January 2026 to 31 December 2028 window.
- Selling or deregistering the vehicle before the second registration anniversary fofeits any remaining tranches, so financing and resale timelines need to account for this lock-in.
A common point of confusion among Singapore SMEs is which scheme applies to which vehicles. The two are mutually exclusive by classification: HVZES covers heavy vehicles above 3,500kg MLW, while the Commercial Vehicle Emissions Scheme (CVES), covered in our earlier breakdown of CVES $15,000 grant ends March 2027 – is your fleet ready to act now?, covers electric light commercial vans under that threshold with a $15,000 rebate. Operators running a mixed fleet of used vans in Singapore alongside heavier trucks can run both schemes in parallel, CVES for the vans, HVZES for the lorries, but a single vehicle cannot claim both.
Heavy vehicles contribute a disproportionate share of Singapore’s land transport emissions, which is why LTA has prioritised this segment. Diesel Category C COE premiums have also climbed sharply through 2026, adding further pressure on the acquisition cost of conventional heavy vehicles. For SMEs already reviewing route efficiency, a theme we explored in How Singapore SMEs are cutting delivery cost by 20-25%, the HVZES payout timeline should be factored into procurement planning, electric heavy vehicle delivery lead times mean orders placed too close to the 2028 deadline risk missing the registration window entirely.
For businesses weighing a new electric heavy vehicle against a pre-owned van or pre-owned truck, the $40,000 tranche structure needs to be modelled into your total cost of ownership, not just your upfront budget. The final $14,000 only lands two years in, and drivers operating heavy vehicles will also need the correct Class 4 or 4A license before the vehicle can be deployed. Operators considering selling commercial vehicle assets to fund a HVZES-eligible purchase should also factor in the two-year holding requirement when structuring their transition timeline.
At Skylink Auto, we help Singapore SMEs navigate every part of this decision. From sourcing used commercial vehicles in Singapore to advising on electric vehicle transitions. Whether you’re weighing a HVZES-eligible electric lorry against a pre-owned truck or planning a phased fleet electrification strategy, visit us at Wcega Plaza or reach out to our team for a no-obligation consultation.