Chauffeured Private Hire Cars (cPHCs), commonly known as Private Hire Vehicles (PHVs), are widely used by drivers on platforms like Grab, Tada, Gojek, and Ryde. In an effort to prevent supply violations, the Land Transport Authority (LTA) has introduced a new regulation requiring cPHC businesses to retain their vehicles for a minimum of three years before selling them to private buyers.
This transition may present challenges for rental companies specialising in PHCs, especially those operating petrol or diesel cars. Managing depreciation and adjusting resale strategies will be key concerns. As a result, increased operational costs may be passed on to their rental customers.
For Velocity Leasing, this transition has little impact because we focus only on electric vehicles (EVs). EVs are cheaper to maintain, last longer, and come with government incentives, which provide our rental customers with stable and affordable rental costs.
Demand for PHC cars remains steady, especially for EVs, as drivers increasingly recognise the cost benefits of reduced expenses and lower maintenance. Furthermore, customers are progressively looking towards sustainable transport solutions, which positions our all-EV fleet as a preferred choice.
At Velocity Leasing, we see this as a positive change. Our all-EV fleet is already built for long-term use, so we can continue offering affordable and sustainable rentals to our drivers.
Understand more about the New LTA Regulation for Chauffeured Private Hire Cars (cPHCs) Scheme below.