Cat A hits record $129,000 as COE prices rise across the board
Sign up now: Get ST's newsletters delivered to your inbox
Category A COEs are meant for smaller, less powerful cars and EVs.
ST PHOTO: KUA CHEE SIONG
- Category A COE prices hit a record $129,000, with all other COE categories also rising due to increased demand and a longer three-week gap between tender exercises.
- The rise in COE prices is driven by strong order collections and growing demand for Chinese electric vehicles.
- Upcoming EV incentive reductions in 2027 contribute to current price hikes, including for commercial and electric heavy vehicles benefiting from significant government subsidies.
AI generated
SINGAPORE – The price of a Category A certificate of entitlement (COE) hit a record high of $129,000, while other COE categories also ended higher at the July 8 tender exercise.
The Category A COEs – meant for smaller, less powerful cars and electric vehicles (EVs) – rose by 4.2 per cent from $123,847, breaching the previous record of $128,105 set in October 2025.
The price of Category B COEs, used to register larger, more powerful cars and EVs, went up 6 per cent to $130,889, from $123,502.
The price of an Open category (Category E) COE climbed 0.6 per cent from $129,002 to $129,801.
Certificates in this category can be used to register any vehicle type except motorcycles, but are used mostly for bigger cars. As these certificates are transferable, motor traders often secure them for the flexibility to register cars without waiting for the next tender exercise.
The motorcycle (Category D) COE premium increased by 2.1 per cent to $10,201 from $9,989, marking the third time that the price of such certificates has breached the five-digit mark in 2026.
Commercial vehicle (Category C) COEs climbed 2.1 per cent to $95,000 from $93,001, breaking the record of $94,000 set at the first exercise in June.
In a statement issued after the exercise, the Land Transport Authority attributed the increase in COE prices to the three-week gap from the previous exercise.
“We urge buyers and dealers to be prudent in bidding for COEs,” it added.
Having one week more than the usual two-week interval between COE exercises translates to more orders and hence demand for COEs, industry observers said.
Overall, the latest round saw a total of 4,950 bids across the five categories – 10.8 per cent more than the 4,462 bids at the previous tender.
Ng Choon Wee, commercial director of Komoco Motors, distributor of Hyundai cars, said order collection had been strong after COE prices dipped at the previous round, as buyers returned from their mid-year holidays.
He believes that while the latest results will have a cooling effect on consumer interest, it is unlikely to result in COE prices coming down significantly. This is because of the high number of unsuccessful bids from this round, which will return in subsequent rounds.
Compared with the previous tender, the number of unsuccessful bids across the categories at the latest exercise came up to 1,796 bids – an increase of 37 per cent from 1,310 bids.
In addition, Ng noted that COE prices are also being driven up by Chinese EV brands competing to put more cars on the road. He said such brands already dominate, accounting for over 40 per cent of the local market.
He said that consumer preference has also evolved to be receptive to Chinese EVs, not only in the mass-market segments but also for higher-end offerings, driving up demand for cars across the board.
It is a view shared by Nicholas Wong, chief executive of Honda agent Kah Motor, who added that short of major policy changes, “it is quite difficult to see COE prices coming down”.
A review of the COE system to improve the categorisation for cars is under way and will be completed by the end of 2026.
Raymond Ng, managing director of Eurokars EV, which distributes MGs, said the looming change in incentives for electric cars is also pushing up demand for cars now. The incentives will be reduced by $10,000 come Jan 1, 2027.
EV incentives were also cited as the major driver behind the record price of commercial vehicle COEs, according to Neo Tiam Ting, director of ThinkOne, a major commercial vehicle dealership.
New electric heavy vehicles registered between Jan 1, 2026, and Dec 31, 2028, are entitled to a $40,000 incentive paid over three years from registration.
In a phone interview with The Straits Times, Neo – who was in China to scout for more electric models to bring to Singapore – said these incentives mean that some electric heavy vehicles are significantly cheaper than combustion engine alternatives.
This has stoked demand for electric trucks, even before factoring how EV charging cost is also lower than filling up with diesel, he said.
