Category A COE premiums could rise but not for the reason you think
New rules mean more electric cars are in the Cat A game, but don’t expect them to change the state of play, say industry watchers
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By Leow Ju-Len
Could lithium-ion batteries give the certificate of entitlement (COE) market a jolt on May 6? A new rule designed to make some electric vehicles (EVs) more affordable came into effect this month, potentially intensifying competition for Category A (Cat A) COEs.
Until now, the category was for cars with less than 1.6 litres of engine capacity and less than 97 kilowatts of power. That second threshold was raised to 110 kW for EVs, in order to make a wider range of them available in Cat A, where COE premiums are typically lower. At the last COE auction in April, for example, the Category B certificate (for cars with more than 1.6 litres under the bonnet) cost S$90,002, or S$21,303 more than the Cat A certificate.
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