SINGAPORE - Certificate of entitlement (COE) prices ended lower for all five categories in the first tender exercise of 2023 that closed on Thursday afternoon.
The COE price for cars with engines up to 1,600cc and 130bhp, as well as electric vehicles (EVs) with up to 110 kilowatts of power, ended at $80,000, which is 9.1 per cent below the $88,007 recorded two weeks ago in December.
For larger cars and more powerful EVs, the COE premium fell from $108,006 to $102,002, a drop of 5.6 per cent.
The price of commercial vehicle COEs decreased by 1.2 per cent from $78,200 to $77,301.
Motorcycle COE premiums also ended lower by 6.8 per cent, from $11,690 to $10,890.
The price of open category COEs, which can be used to register any type of vehicle other than motorcycles, was cheaper than the last round’s $109,600 by 1.6 per cent to end at $107,889.
Motor dealers had expected COE prices to come down. Some said that brands which were gunning for annual sales targets to close 2022 on a high would have registered as many vehicles as they could last year. They would now have fewer orders to fulfil during this time.
Others said that the sales performance in December was poor because many people were out of the country.
Mr Fude Poh, general manager of S.1 Motoring, said that demand for food delivery services seems to be waning as more people are returning to the office. This in turn means a reduced demand for motorcycles. On the outlook for motorcycle sales, he said: “2023 does not look good.”
In the category for smaller cars and less powerful EVs, more than half the total number of bids were registered in the final eight minutes of the tender exercise.
Industry observers have associated such bidding behaviour with fleet owners who move in when they spot an opportunity to net cheaper COEs at the last minute. Motor dealers tend to submit their bids earlier in the exercise to ensure that they can secure the COEs needed to register cars to fulfil customers’ orders.
The group commercial director at Komoco Motors, Mr Ng Choon Wee, said the results reflect how weak the demand for cars has been since the last tender exercise.
Consumers can expect car prices to be revised downwards following Thursday’s tender results. However, the adjustments may not be as significant as the $6,000 to $8,000 drop in COE premiums.
Ms Adelene Tan, sales and marketing director for Vantage Automotive, said in setting prices, most dealers will be taking into account their anticipation of a rebound in COE prices in the next round as demand picks up.
Ms Cheryl Chiok, managing director for Mini at Eurokars Habitat, said the dip in COE premiums will be good for the Singapore Motorshow, to be held from Jan 12 to 15 at the Suntec Singapore Convention and Exhibition Centre.
