COE supply not increasing enough to bring down high prices: observers
More revalidations, lower-than-expected deregistrations mean significant lowering of premiums could be years away
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DESPITE an increasing Certificate of Entitlement (COE) supply, industry observers expect premiums for passenger cars and commercial vehicles to remain elevated at least until 2026.
After falling since 2016 to a low in 2023, COE quotas for Category A, B and C – which cover mainstream passenger cars, larger passenger cars and commercial vehicles, respectively – have now risen back to levels similar to 2021.
Yet their premiums remain far above 2021 levels, as the increase in supply is outpaced by rising demand.
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