Cat A COE rate drops 6.8% to $102,009 in first exercise of 2026; Cat B price rises 3.5%
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While the premium for a Category A COE decreased from December 2025, the price of a Category B certificate increased.
PHOTO: ST FILE
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SINGAPORE – The price of a Category A certificate of entitlement (COE) dropped by 6.8 per cent in the first tender exercise of 2026, while the Category B premium rose by 3.5 per cent.
On Jan 7, the premium for a Category A COE, meant for smaller and less powerful cars and electric vehicles (EVs), was $102,009, a drop from the $109,501 at the previous exercise that closed on Dec 17
Meanwhile, the premium for a Category B COE, for larger and more powerful cars and EVs, rose from $115,102 to $119,100.
In the Open category, otherwise known as Category E, the price of a certificate went up by 2.5 per cent from $119,000 to $122,000.
Certificates in this category can be used to register any vehicle type except motorcycles and usually end up being used for bigger cars.
Such certificates are also transferable, giving motor dealers the flexibility to register cars without having to wait for the next tender exercise.
COEs for commercial vehicles (Category C) were priced at $75,503 – a 1.9 per cent fall from $77,003 previously.
The motorcycle COE premium (Category D) recorded a 7.5 per cent rise from $8,081 to $8,689.
Two COE bidding exercises are held each month.
A certificate gives the holder the right to register a vehicle in Singapore. The cost of securing one is usually included in the selling price of a vehicle.
Such exercises are typically held every two weeks, but there was a three-week gap between the latest exercise and the preceding one, giving dealers more time to collect orders.
Whether the latest COE premiums will have an effect on buyers’ decision-making at the Singapore Motorshow, which runs from Jan 8 to 11, remains to be seen, said Mr Chong Kah Wei, managing director for Mazda at multi-brand dealership Eurokars.
He said some buyers might switch from buying a Category B vehicle to a Category A one due to the drop in prices for Category A COE premiums.
But it would depend on the offers at the motor show and whether the deals can convince people to make the switch.
“There’s always a fluctuation (in COE prices) and a threshold that customers are willing to pay,” he said.
However, Ms Corinne Chua, managing director of Volvo Cars at multi-brand distributor Wearnes Automotive, said the widening gap between Categories A and B prices will likely lead to greater interest in Category A cars, including at the motor show.
Both said demand for EVs is unlikely to taper off despite cuts to rebates for EV buyers
The maximum combined rebate for EV buyers was reduced from $40,000 to $30,000, and will further drop to $20,000 in 2027.
The drop in Category A COE premiums offsets the increase in cost, said Ms Chua, while Mr Chong said that some brands will also try to absorb the reduction in rebates.
Meanwhile, Singapore University of Social Sciences transport economist Walter Theseira said: “My advice is, if you don’t need a car within the year, then wait. Don’t pay attention to monthly trends. That’s missing the forest for the trees.”
“We can’t predict what happens within a given month, but we can predict that during parts of the cycle when there are more COEs available, prices will be lower,” he added.
The number of COEs from November 2025 to January 2026 was 1.5 per cent higher
Other than motorcycles, which had the same number of COEs, every other vehicle category saw increases, with a total of 18,984 available, up from 18,701.
The Land Transport Authority (LTA) said in October 2025 that COE supply for Category A is “expected to peak and even out supply in this and the coming quarters”.
