SINGAPORE – The Category A certificate of entitlement (COE) premium dropped slightly to $130,001 in the Oct 7 tender exercise, after reaching an all-time high of $133,009 in early September.
Prices in all the other categories also dropped, except for the Open (Category E) premium, which held steady.
The price for Category A COEs – meant for smaller, less powerful cars and electric vehicles (EVs) – dropped 1.4% from $131,890 in the last exercise.
The premium for Category B COEs – used to register larger, more powerful cars and EVs – fell 2.2% from $133,000 to $130,100.
The Open category COE premium stayed the same at $137,000.
As these certificates are transferrable, motor traders often secure them for the flexibility to register cars without waiting for the next tender exercise.
The price of certificates for commercial vehicles (Category C) was 0.3% lower than the previous $92,144, ending at $91,889.
The motorcycle (Category D) COE premium posted a 9.7% decline from $12,201 to $11,012.
A COE is needed to own and use a vehicle in Singapore.
The authorities are reviewing the COE system to improve the categorisation of cars. The review will take in views from motorists, dealers, car manufacturers and academics, and is expected to be completed by the end of 2026.
Ng Choon Wee, commercial director of Komoco Motors, the distributor of Hyundai cars, attributed the drop in COE prices for categories A and B this round to weaker market demand. He thinks that some buyers might have held back on purchases as they expect better deals at the Cars@Expo event from Oct 24 to 25.
Changes to EV schemes
This could also lead to lower COE prices in the next tender that closes on Oct 21, he added.
Volvo managing director Corinne Chua, from Wearnes Automotive, also believes the event was a factor in the lower COE prices. She predicts that COE prices for both categories A and B will increase again after buyers place more orders at the Cars@Expo event.
As this car show is the last major one in 2026 before changes to schemes encouraging the adoption of EVs take effect from Jan 1, 2027, she said it may see more deals sealed, driving up COE prices.
The changes include the introduction of higher surcharges for cars with high exhaust emissions. Those that fall into the most polluting band under the Vehicular Emissions Scheme will attract a surcharge of $45,000, up from $35,000 currently.
The EV Early Adoption Incentive will also be discontinued from Jan 1. The scheme provided a rebate of up to $15,000, before the maximum amount was halved to $7,500 from Jan 1, 2026.