OBU Installation in Singapore: Your Complete Guide to ERP 2.0
Singapore is rolling out ERP 2.0, a major upgrade to its Electronic Road Pricing system. At the heart of this new system is the On-Board Unit (OBU)—a smart, satellite-based device replacing the older In-Vehicle Units (IUs). If you drive a Singapore-registered vehicle, here's everything you need to know about the OBU, why it's being implemented, how installation works, and what it costs.
What Is the ERP 2.0 OBU?
The new On-Board Unit (OBU) is a three-part system consisting of:
Processing Unit – Installed behind the dashboard to handle data and communications.
Antenna Unit – Mounted on the windscreen to maintain GPS connectivity.
Touchscreen Display – Placed on the dashboard to show real-time ERP charges, card balance, and notifications.
This system uses satellite positioning to support distance-based road pricing and future enhancements in real-time traffic data, vehicle diagnostics, and digital payment integration.
Why Was the OBU Introduced?
The OBU is a critical part of Singapore’s smart mobility infrastructure. Key reasons for the transition include:
Aging IU System – Existing IUs are nearing end-of-life and lack scalability.
Greater Pricing Flexibility – ERP 2.0 allows for real-time and location-based pricing models.
Improved Traffic Management – Data from OBUs can be used to better manage congestion and plan infrastructure.
Digital Integration – The OBU supports future features like digital road taxes, automated parking payment, and vehicle data analytics.
Is OBU Installation Mandatory in Singapore?
Yes. The Land Transport Authority (LTA) requires all Singapore-registered vehicles to install the OBU under a phased rollout. Fleet vehicles started in late 2023, with private vehicles following progressively. Failure to install by the assigned window may lead to enforcement action or fines.
How Does the OBU Installation Work?
The process typically takes between 2 to 4 hours, depending on vehicle type. Here's how it works:
Appointment Booking – Vehicle owners receive a letter and booking code from LTA to schedule installation.
Component Installation – The 3 units (processor, antenna, display) are securely mounted in the vehicle.
System Testing – Installers run diagnostics to ensure GPS signal, touchscreen responsiveness, and power flow.
Post-Install Instructions – Drivers are briefed on how to read the display, top up payment cards, and check messages.
Installations must be performed by LTA-authorised installers such as Ah Keng Motor only.
How Much Does the OBU Installation Cost?
The installation is free of charge during the LTA-stipulated period for your vehicle class.
However:
Missed appointments or late installations may result in fees.
Vehicles close to deregistration may not be eligible for free installation.
Additional costs may apply if aftermarket repairs are needed post-install.
Schedule Your OBU Installation with Ah Keng Motor
To make your ERP 2.0 transition stress-free, Ah Keng Motor is proud to offer certified OBU installation services. We are an LTA-authorised workshop with experienced technicians who handle the full process efficiently and professionally.
Find our more about your OBU Installation Process with Ah Keng Motor here!
Book your OBU Installation appointment now!
