THERE will be a small increase in the total number of Certificates of Entitlement (COEs) available from February to April 2024, the Land Transport Authority (LTA) announced on Monday (Jan 29). The motorcycle category will receive additional COEs from future deregistrations for the first time.

The total number of COEs has increased by 319, or 2.2 per cent, to 14,707, compared to the preceding three-month period of November 2023 to January 2024.

The government is continuing with its cut-and-fill policy of bringing forward guaranteed de-registrations to the passenger car COE Categories A and B, but it is also applying the policy to Category D (for motorcycles) for the first time.

LTA said that the COE quotas for Categories A, B and C will continue to increase in 2024 before reaching the peak supply period from 2026, while the Category D quota in 2024 is expected to remain comparable to 2023.

It also said that it will bring forward the guaranteed deregistrations of five-year non-extendable Category D COEs to reduce quota supply volatility.

The quota for Category A increased by 96, or 1.7 per cent, to 5,609. It is applicable to mainstream cars that have engines of up to 1,600 cc in capacity or up to 97 kilowatts (kW) of power, or for electric vehicles (EVs) with up to 110 kW of power.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

A total of 1,803, or 32.1 per cent, of the Category A quota are cut-and-fill additions.

Category B’s quota increased by 95, or 2.5 per cent, to 3,895. It is used to register larger or more powerful cars with engines of more than 1,600 cc in capacity or more than 97 kW, or for EVs with more than 110 kW.

Of the Cat B quota, 1,150 or 29.5 per cent are cut-and-fill additions.

Despite receiving cut-and-fill additions for the first time, Category D remains the same – 3,105 – as the preceding period. A total of 312 Category D COEs, or 10 per cent, are cut-and-fill additions.

The quota for Category C (for commercial or goods vehicles) increased by 41, or 3.6 per cent, to 1,170.

The quota for the open category, E, which can be used to register any type of vehicle except for motorcycles, increased by 87, or 10.3 per cent, to 928.

Car dealers noted that the cut-and-fill additions for passenger cars had increased in the previous quota periods, although the small quota increase could mean that high demand could keep COE prices high.

“The government ramped up the amount of cut-and-fill for passenger car categories in the previous period, so I think it is looking to maintain stability in this upcoming period,” said Ng Choon Wee, the commercial director for Hyundai distributor Komoco Motors.

“Given the strong customer demand we’ve seen so far this year, we were hoping for more COE quota to keep prices down,” said Sabrina Sng, managing director for Lotus, Polestar and Insurance at dealership group Wearnes Automotive.

With the population growth rate set at zero for all vehicle categories except Category C (for commercial vehicles), base COE quotas without cut-and-fill additions are largely determined by vehicle de-registrations.

Since January 2023, the LTA determines the quota for each three-month period based on the average de-registrations of the preceding 12-month period.

The next COE quota announcement, for the period May to July 2024, will be made in April 2024.