Motorbike COE prices robust despite government probe

The COE premium for motorbikes ended at $7,589, just 6.1 per cent lower than the record on March 29.
The COE premium for motorbikes ended at $7,589, just 6.1 per cent lower than the record on March 29. ST PHOTO: KUA CHEE SIONG

Despite a government probe into alleged COE speculation by a group of motorcycle dealers, premiums for certificates of entitlement (COEs) for two-wheelers remained robust in the latest tender yesterday.

The COE premium for motorbikes ended at $7,589, just 6.1 per cent lower than the record on March 29.The steep motorcycle premium persists, undeterred by recent government intervention.

In February, higher taxes were rolled out for bigger, costlier motorcycles, in a move to soften demand for the machines, which are widely seen as contributing to the high COE prices of two- wheelers.

The motorbike premium, which has been rising from below $2,000 in 2013, breached $6,000 in 2015.

It hovered around $6,500 in the past 12 months before rising to the current near-record levels.

 

Industry observers said it should ease from next month, when the motorbike COE supply increases by more than 30 per cent.

Meanwhile, prices of COEs for cars ended higher yesterday.

The COE premium for cars up to 1,600cc and 130bhp finished 0.5 per cent higher at $52,000, while that for cars above 1,600cc or 130bhp crept up by 0.8 per cent to $54,405. The Open COE category, which can be used for any vehicle type but ends up used mostly for bigger cars, closed 0.1 per cent higher at $54,556.

All three are at their highest in five months. Dealers said a push to clear stocks ahead of Euro 6 standards that take effect in September, and models that will be penalised when the new Vehicular Emissions Scheme starts next January, exerted upward pressure on premiums.

Commercial vehicle COE prices finished 2.4 per cent lower at $45,906.

Christopher Tan

A version of this article appeared in the print edition of The Straits Times on April 13, 2017, with the headline 'Motorbike COE prices robust despite govt probe'. Print Edition | Subscribe