The number of private cars in Singapore has dropped to its lowest level since 2019, reaching 516,237 units as of the end of June. While private vehicles still make up the majority of the country's 653,442-car fleet, their share has declined to 79 per cent, down from 82.5 per cent in 2021. Conversely, the rental car population has surged to a record high of 97,567 units, now accounting for 14.9 per cent of the total fleet compared to 10.5 per cent five years ago.
This shift is largely driven by the high cost of car ownership in Singapore. Certificate of Entitlement (COE) premiums, which are required to register a vehicle, have remained steep in 2026, ranging between S$102,009 and S$130,889. These costs have prompted many motorists who only need a vehicle occasionally to opt for leasing, car-sharing, or ride-hailing services rather than committing to the long-term expense of buying a car.
Transport economist Walter Theseira from the Singapore University of Social Sciences noted that for light users, renting makes clear financial sense. The trend is particularly visible in the self-drive rental segment, which has seen growth as people seek flexible access to vehicles for weekend trips or errands without the burden of ownership. Meanwhile, the number of cars used for chauffeured ride-hailing services has remained relatively flat.
While the data suggests a change in consumer behavior, the Land Transport Authority (LTA) maintains that it is too early to conclude a fundamental shift in travel preferences. The agency plans to continue monitoring broader indicators, including public transport ridership, point-to-point travel patterns, and the usage rates of shared mobility options, to better understand how Singaporeans are adapting to the current transport landscape.