COE premiums rise in most categories except Cat A, which dipped to $124,229

SINGAPORE – The certificate of entitlement (COE) price for cars in Category B rose to $129,501 at the latest tender on May 20, while the premium for Category A cars dipped slightly.

The premium for Category A – for smaller, less powerful cars and electric vehicles (EVs) – ended at $124,229, down 0.4 per cent from the $124,790 recorded in the previous tender on May 6. It was the only category to see a decline in this exercise, with premiums in all other categories rising.

The price of a Category B certificate – for larger, more powerful cars and EVs – climbed 2.6 per cent from $126,236 on May 6 to $129,501.

This is the highest since November 2025, when it was $129,890.

For the Open category (Category E), the premium rose 1.8 per cent, from $127,700 to $130,000. Certificates in this category can be used to register any vehicle type except motorcycles, but are typically used 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 price of a motorcycle COE (Category D) rose 2.5 per cent, from $9,452 to $9,689.

The commercial vehicle (Category C) COE registered the biggest increase, with the premium climbing to an all-time high of $92,223. This was a 5.4 per cent increase from the previous exercise, when it stood at $87,479.

In a statement issued shortly after the exercise, the Land Transport Authority (LTA) said COE prices have remained high, likely due to seasonal demand after the Car Expo earlier in May.

For Category C, LTA said it has observed an increase in registrations of electric heavy goods vehicles and electric buses since January. This could be due to growing adoption of the Heavy Vehicle Zero Emissions Scheme, it added.

The scheme provides businesses with a $40,000 cash grant for adopting zero-tailpipe-emission heavy goods vehicles and buses.

“We urge car buyers and dealers to be prudent in bidding for COEs,” LTA added.

Ms Corinne Chua, managing director of Volvo at distributor Wearnes Automotive, said that after recent increases of the Category A COE price, “it is likely that it has reached its maximum threshold, even though demand for Category A cars remains strong”.

“Typically, after a big sales event like the Car Expo, COE premiums will go up,” she said.

As for Category B cars, she said demand remained strong, and the narrowing gap between the premiums of the two car categories, coupled with higher demand, had driven up the COE premiums.

“That is despite the fact that there are more COEs for Categories B and E from this month to July,” she said.

“With the high number of unsuccessful bids for both Categories A and B, I expect COE prices to continue (rising) or remain at current levels, as many cars are nearing the end of the 10-year COE cycle and are due for (replacement).”

Mr Raymond Ng, managing director of distributor Eurokars EV, said that while the Category A premium dipped, the $561 decline was “relatively insignificant”.

He noted that 1,056 unsuccessful Category A bids, accounting for about 86 per cent of the May 20 exercise’s quota, will be carried over to the next round.

On Category B, Mr Ng said consumers in this segment are generally more affluent, and that the recent expo meant the increase in premiums was in line with expectations.

Looking ahead, he said demand could also be shaped by upcoming milestones, including the two remaining bidding exercises before the end of the second quarter of 2026, as well as targets that some dealers will try to reach before the end of their financial year.

LTA said in April that more COEs will be available between May and July.

During the three months, a total of 19,052 COEs will be made available, up from the 18,824 certificates from February to April – a 1.2 per cent increase.

Fewer Category A certificates are up for bidding. Between May and July, there will be 7,434 such certificates, a 2 per cent drop from the 7,585 COEs for this category available in the preceding three months.