SINGAPORE, Jan 19 — Singapore drivers leasing cars from Autobahn Rent A Car have been left stranded and out of pocket after the company abruptly suspended operations amid over S$300 million (RM945.98 million) in debt.
Many drivers were told by the firm that business would continue as usual, only to discover they could no longer use the private hire vehicles because the road tax had lapsed, Singapore-based news outlet CNA reported today.
“Then, when I checked the road tax, I found out that it had expired,” one driver identified only as Chua, 34, was quoted as saying, adding that he could neither use the car nor recover his S$500 (RM1,577) deposit.
According to CNA, the collapse follows a broader strain in Singapore’s private car leasing sector, where aggressive price wars, overleveraged business models, and easy access to credit have pushed some firms to the brink.
Industry data shows that 227 car rental and leasing companies closed in 2025, representing about 12 per cent of the sector.
The news outlet reported drivers being forced to scramble for alternative jobs, often earning significantly less than what they made as private hire drivers.
Authorities and unions are stepping in to help affected drivers, CNA reported.
The Singapore National Trades Union Congress (NTUC) , Land Transport Authority, and ride-hailing platforms are providing temporary vehicles.
“We know this situation has created significant hardship for affected drivers, and we have engaged a number of them. Drivers depend on their vehicles to earn a living, and we take their livelihoods seriously,” NTUC assistant secretary-general Yeo Wan Ling was quoted as saying.
Experts warn that prospective drivers should exercise caution and ensure road tax, insurance, and deposit protections before leasing vehicles from operators.
The industry faces ongoing pressure, and observers say its stability will depend on more prudent business models and careful regulation to prevent similar collapses.