Car Workshops Confront Uncertain Future as EVs Rise

The automotive repair landscape in Singapore is undergoing significant transformation, raising concerns among car workshop owners about their future viability. As electric vehicles (EVs) gain traction and consumer preferences shift, traditional mechanics find themselves grappling with a declining customer base and changing service demands.

Mr. Dylan Chew, who has operated Supreme Auto Service in Sin Ming for over 25 years, acknowledges the gravity of the situation. He estimates that his business has plummeted by approximately 50 percent compared to a decade ago. “Every day used to be very busy, but now it is much more relaxed,” he stated. With fewer cars to service each day, Chew has informed his three mechanics, most of whom are in their fifties, that job security may be fleeting, urging them to consider their future.

The decline in car ownership among younger Singaporeans has intensified the challenges faced by traditional workshops. Many have shifted towards car-sharing services and ride-hailing apps, which are often serviced by larger workshops affiliated with rental companies. This trend has only accelerated with the country’s commitment to transition to cleaner energy vehicles, as outlined in the Singapore Green Plan 2030. The plan aims for all new vehicle registrations to consist of cleaner-energy models by 2030, with a vision of fully transitioning to cleaner energy by 2040.

As of November 2025, the number of EVs on Singapore’s roads has surged to 46,029, accounting for 7 percent of the total vehicle population, a significant increase from just 2,942 EVs in 2021. This rapid growth reflects a broader trend, with EVs comprising 43 percent of new car registrations in the first nine months of last year.

While internal combustion engine (ICE) vehicles still dominate the roads, workshop owners express concern that the maintenance landscape is shifting. Chew explained that EVs require far less labor for servicing due to their simpler mechanics, lacking the intricate engine and transmission systems found in petrol vehicles. Routine services such as oil changes and timing belt replacements, which once provided consistent income, are becoming increasingly rare.

The limitations of servicing EVs also pose challenges. Many high-voltage systems and battery components are typically handled by authorized dealers, leaving smaller workshops with only bodywork, accident repairs, and basic maintenance tasks. Mr. Adrian Ching, second-generation owner of Ching Motor Repair Shop, reported a 15 percent decline in business compared to early 2025, attributing part of this downturn to customers opting for EVs. He remarked, “They still need us now – we will probably still be around in five years. But beyond that, it’s hard to say.”

The shift towards rentals and ride-hailing services is not limited to cars. Mr. Alfred Lee, managing director of Lee Brothers Automotive, noted that this trend extends to lorries and small trucks as well. Many business owners prefer renting to avoid the financial burdens of ownership, such as down payments and maintenance costs. Lee highlighted that rental companies often operate their own workshops or partner exclusively with select repair shops, making it challenging for independent workshops to thrive.

Cost pressures further exacerbate the difficulties faced by traditional mechanics. Rising wage demands and increased costs of spare parts have made it harder to maintain profitability. “People look for cheaper alternatives,” said a workshop owner who preferred to remain anonymous, noting that some customers now seek repairs across the border in Johor.

The competitive landscape is changing as well. Chew observed that authorized dealers are aggressively pursuing after-sales service contracts, a shift from past practices where they showed little interest in maintaining vehicles beyond their initial years. This intensifying competition leaves independent workshops struggling to retain customers.

Despite the challenges posed by the rise of EVs and changing consumer habits, some workshop owners remain optimistic. Ms. Kuah Lay Hoon, director of Lee Sheng Auto, believes that accident-related repairs and routine maintenance for conventional parts will continue to sustain their businesses.

While some in the industry are skeptical about the immediate dominance of EVs, others foresee a potential shift. Joey Lim, president of the Singapore Motor Workshop Association (SMWA), remarked that current EV registration numbers do not yet indicate a decisive market transition. He noted, “Even with strong government incentives, we still do not see more than 50 percent of sales going to EVs.”

As the automotive landscape evolves, workshop owners face critical questions about their future. Reskilling opportunities for mechanics to service EVs are limited, and the costs associated with training may not yield immediate returns. Lim emphasized that many EVs come with extended warranties, delaying the need for independent servicing.

For some owners like Madam Candice Yee, who operates Premium Carz Services, the outlook is grim. She has no plans to train her mechanics for EV repairs, acknowledging that the industry is changing in ways beyond their control. “Some workshops will live and some will die,” she stated. “The government has already shown the direction they are going, and there’s nothing we can do.”

As the automotive sector in Singapore navigates this transition, the future of traditional car workshops remains uncertain, shaped by evolving consumer preferences, technological advancements, and shifting market dynamics.