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Cat A COE premium eases as demand is diverted to Cat B

With the gap in premium between the two categories narrowing, buyers may prefer bigger cars, say observers

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Tay Peck Gek

Tay Peck Gek

Published Wed, Aug 5, 2026 · 09:18 PM
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    • The premium for a Category A COE – meant for smaller, less-powerful cars and electric vehicles – is down 1.7% at S$123,890 in the latest tender exercise.
    • The premium for a Category A COE – meant for smaller, less-powerful cars and electric vehicles – is down 1.7% at S$123,890 in the latest tender exercise. PHOTO: YEN MENG JIIN, BT

    [SINGAPORE] The Certificate of Entitlement (COE) premium for smaller cars eased in August’s first bidding round as demand was diverted to bigger cars.

    This follows the gap between Category A and Category B premiums narrowing in recent exercises, and a record-high premium for Category A in July.

    Anthony Teo, managing director of automotive group Motorway, pointed out that car owners will go for Category B when premiums for A and B are close, which could explain the 1.7 per cent slide in Category A’s premium on Wednesday (Aug 5). 

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