Cat A COE price hits record high of $107,889

SINGAPORE – Car prices are set to rise after the certificate of entitlement (COE) tender exercise on Sept 3 saw the premium for smaller and less powerful cars hitting a record high of $107,889.

The latest price for Category A COEs, used to register smaller and less powerful cars and electric vehicles (EVs), was 3.2 per cent higher than the $104,524 at the

previous tender

on Aug 20.

It also broke the record of $106,000 set at the second exercise in October 2023.

For Category B, which is meant for larger and more powerful cars and EVs, the premium was $127,501, an increase of 2.5 per cent from the $124,400 recorded at the last exercise.

This is the third consecutive tender exercise that has seen the premium for this COE category rising, and the price was the highest since December 2023, when it was $130,100.

A COE is required to register a new vehicle in Singapore, and the cost of getting a certificate is usually included in the price of the vehicle.

The price of an Open category (Category E) COE was $127,901 – 2.3 per cent more than the $125,001 in the previous tender.

Open category COEs can be used to register any vehicle type other than motorcycles, but are almost always used for bigger and more powerful cars.

The COE price for commercial vehicles (Category C) was the only one to post a dip, ending at $71,556 – 0.9 per cent down from $72,190 previously.

At $9,101, the motorcycle (Category D) COE price was 3.3 per cent above the $8,809 registered two weeks ago.

Mr Nicholas Wong, chief executive of Honda agent Kah Motor, said dealers are more driven to secure COEs in this round to register cars because they expect premiums to rise further. This is even as sales at some dealerships have been poor since COE prices rose two weeks ago.

However, representatives at dealerships selling Chinese EVs, like Volt Auto and BYD by JC, said their showrooms have remained busy.

Mr Soh Ming, founder and managing director of Volt Auto, the authorised distributor of Chinese brand Dongfeng, said customers are keen to get an EV in 2025 to qualify for rebates.

Currently, EVs can qualify for up to $40,000 in rebates through the combination of the EV Early Adoption Incentive and the Vehicular Emissions Scheme, with both due to expire in 2025.

Non-Chinese brands with Category A EVs like Volvo from Sweden have coped better, as interest cools for the brand’s larger Category B models.

Ms Corinne Chua, managing director of Volvo at Wearnes Automotive, noted that in addition to the fear of missing out on the rebates, consumers who had been waiting for lower prices are returning to showrooms as they believe COE premiums are unlikely to drop any time soon.

Mr Vincent Ng, a business consultant for Vincar Group, distributor of Chinese EV brand GAC Aion, said that with more Category A EVs slated to be launched in the coming weeks, the premium for this category will likely continue to rise and close the gap with the traditionally pricier Category B.

Even before factoring in the entry of more models, Mr Ng Choon Wee, commercial director of Komoco Motors, which distributes Hyundai, expects demand for COEs to rise in the next few rounds.

This is because of the Car Expo event from Sept 27 to 28, a large-scale sales event organised by SPH Media, which publishes The Straits Times, and the three-week gap before the October tender exercise.

The additional week on top of the usual two-week gap will give dealers more time to collect orders. The next tender exercise closes on Sept 17.