The number of private cars in Singapore is at its lowest since 2019, at 516,237 units. Rental cars, in contrast, hit a record 97,567 units. This comes as high car prices nudge some who need a car only occasionally towards renting or hailing a ride instead of owning one.
While private car ownership continues to dominate, its share is slipping. As at the end of June, 79 per cent of the total car population of 653,442 units are privately owned, compared with 82.5 per cent in 2021, when the car population was 645,150 units.
Rental cars, on the other hand, are becoming increasingly common. They made up 10.5 per cent of the total car population in 2021, with 67,990 vehicles, but now account for 14.9 percent of cars on the road.
The latest quarterly data released by the Land Transport Authority (LTA) on July 24 showed that within the rental car population, the number of cars used for ride-hailing, or chauffeured, services has dipped slightly. Between the end of 2025 and June 2026, the number fell from 62,092 to 61,250.
Over the same period, the number of self-drive rental cars, which cannot be used to ferry paying passengers, increased from 33,765 to 36,317. These cars are used for short-term car-sharing services or longer-term leases.
The figures raised questions about whether motorists are moving away from private car ownership.
In response to queries from The Straits Times on whether the statistics suggest that motorists are moving from private car ownership to alternative transport options, an LTA spokesperson said that more indicators need to be tracked over a period of time to study changes in commuter preferences.
These include trends in public transport ridership, point-to-point trips and other options like shared cars and bicycles.
Walter Theseira, a transport economist at the Singapore University of Social Sciences, said that the high cost of buying a car meant that for those who need to drive only occasionally, renting when they need one makes economic sense.
Adrian Lee, president of Vehicle Rental Association, an industry body with 44 members and over 23,000 vehicles, said that demand for car rentals has been growing but companies have been cautious not to grow too quickly.
A key concern is the uncertainty over how the prices of certificates of entitlement (COEs) will develop in future.
COEs are needed to register cars on the road and premiums in 2026 have cost between $102,009 and $130,889, compared with between $65,010 and $116,002 in 2024. Companies fear being caught with expensive cars if COE prices fall significantly later on.
One way companies alleviate their business risk, according to Lee, is to convert existing private cars into self-drive rental cars.
Lee, who is also the co-founder of Tribecar, an online car-sharing platform, said that the idea of short-term car rental is now an accepted alternative form of transport among younger people.
Sime Darby Auto Selection, the leasing arm of Malaysian-owned motor group Sime Darby, has increased its fleet by 10 per cent over the past 12 months to around 600 cars.
Its managing director, Christopher Chin, said that besides the growing acceptance of leasing, some customers are doing so while waiting for COE premiums to fall so that they can buy a car.
A possible factor behind the slight shrinkage in the number of rental cars for ride-hailing services, according to Lee, is the lock-in period imposed on such vehicles.
Introduced in February 2025, business-owned ride-hailing cars cannot be sold to individuals or be converted into private cars for three years. LTA said that the move was to ensure a more stable supply of cars that can be used to provide ride-hailing services.
-The Strait Times
While private car ownership continues to dominate, its share is slipping. As at the end of June, 79 per cent of the total car population of 653,442 units are privately owned, compared with 82.5 per cent in 2021, when the car population was 645,150 units.
Rental cars, on the other hand, are becoming increasingly common. They made up 10.5 per cent of the total car population in 2021, with 67,990 vehicles, but now account for 14.9 percent of cars on the road.
The latest quarterly data released by the Land Transport Authority (LTA) on July 24 showed that within the rental car population, the number of cars used for ride-hailing, or chauffeured, services has dipped slightly. Between the end of 2025 and June 2026, the number fell from 62,092 to 61,250.
Over the same period, the number of self-drive rental cars, which cannot be used to ferry paying passengers, increased from 33,765 to 36,317. These cars are used for short-term car-sharing services or longer-term leases.
The figures raised questions about whether motorists are moving away from private car ownership.
In response to queries from The Straits Times on whether the statistics suggest that motorists are moving from private car ownership to alternative transport options, an LTA spokesperson said that more indicators need to be tracked over a period of time to study changes in commuter preferences.
These include trends in public transport ridership, point-to-point trips and other options like shared cars and bicycles.
Walter Theseira, a transport economist at the Singapore University of Social Sciences, said that the high cost of buying a car meant that for those who need to drive only occasionally, renting when they need one makes economic sense.
Adrian Lee, president of Vehicle Rental Association, an industry body with 44 members and over 23,000 vehicles, said that demand for car rentals has been growing but companies have been cautious not to grow too quickly.
A key concern is the uncertainty over how the prices of certificates of entitlement (COEs) will develop in future.
COEs are needed to register cars on the road and premiums in 2026 have cost between $102,009 and $130,889, compared with between $65,010 and $116,002 in 2024. Companies fear being caught with expensive cars if COE prices fall significantly later on.
One way companies alleviate their business risk, according to Lee, is to convert existing private cars into self-drive rental cars.
Lee, who is also the co-founder of Tribecar, an online car-sharing platform, said that the idea of short-term car rental is now an accepted alternative form of transport among younger people.
Sime Darby Auto Selection, the leasing arm of Malaysian-owned motor group Sime Darby, has increased its fleet by 10 per cent over the past 12 months to around 600 cars.
Its managing director, Christopher Chin, said that besides the growing acceptance of leasing, some customers are doing so while waiting for COE premiums to fall so that they can buy a car.
A possible factor behind the slight shrinkage in the number of rental cars for ride-hailing services, according to Lee, is the lock-in period imposed on such vehicles.
Introduced in February 2025, business-owned ride-hailing cars cannot be sold to individuals or be converted into private cars for three years. LTA said that the move was to ensure a more stable supply of cars that can be used to provide ride-hailing services.
-The Strait Times
