Big-car COE premium rockets to S$121,501, highest level in over a year
Mainstream car and commercial vehicle categories see small decreases
CERTIFICATE of Entitlement (COE) bidding for 2025 is off to a racing start as the premium for larger, more powerful cars – those classified as Category B – spiked 11.5 per cent or S$12,501 to S$121,501.
The premium is higher now than in all of 2024, where the peak was S$116,002 in October’s first round of bidding. The last time the premium was higher was during December 2023’s first round of bidding when it was S$130,100.
Category B is reserved for cars that have engines of more than 1,600 cubic centimetres (cc) in capacity or with more than 97 kilowatts (kW) of power, or for electric vehicles (EVs) with more than 110 kW of power.
The premium for the Open category, E, increased even more: it was up 12.9 per cent or S$14,008 at S$123,000.
While an Open category certificate can be used to register any type of vehicle other than motorcycles, it is typically used to register the most expensive vehicles – those from Category B.
Similar to Category B, Category E had not reached this price level in all of 2024. The previous highest price of S$133,388 was in December 2023’s first round of bidding.
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The price for Category A, used for mainstream cars, dipped 2.4 per cent or S$2,301 to S$93,699.
The Category A COE applies to mainstream cars that have engines of up to 1,600 cc in capacity or with up to 97 kW of power, or for EVs with up to 110 kW of power.
The price for Category C, applicable to commercial vehicles and buses, decreased 2.9 per cent or S$1,999 to S$67,891.
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The price for Category D, used for motorcycles, increased 7.4 per cent, or S$620, to S$9,001.
Significant increase in Category B
Car dealers The Business Times spoke to said that Category B’s significant increase was a surprise, and attributed it to sales of BYD’s new model, the Sealion 7, as well as bidding from private hire car leasing fleets.
Nicholas Wong, chief executive officer for authorised Honda dealer Kah Motor, said: “There is a (private hire) fleet element at play here, as the increase is beyond normal retail levels for the category, which is usually between S$4,000 and S$5,000.”
He said that a similar effect could be seen in the increase of the motorcycle category premium, where fleet operators look to populate their fleets in preparation for the year ahead.
Other dealers also pointed out that the significant increase in bids also indicated action by fleet operators. The bids received for Category B increased by 28.3 per cent, to 1,266. They reached a similar level – 1,308 – in January 2024 after the Singapore Motorshow.
The premium for the category may also have been driven by BYD’s introduction of its new, sport utility vehicle, the Sealion 7. Marketed as a premium model, it uses a Category B certificate.
Anthony Teo, managing director of BYD distributor and dealer Vantage Automotive, said that orders for the car had been open for a week, with sales doing “very well” with high customer interest, though he declined to comment on specific sales figures.
Teo said that opening up early pre-sales for the model, which makes its official debut at the Singapore Motorshow on Thursday (Jan 9), could help spread out the bids and reduce the chances of a COE spike.
COE premiums typically go up in the bidding round following the show as dealers have many orders to clear.
While the high price for Category B could dampen sales at the Motorshow, some took heart in Category A’s price moderation.
“Category B was a surprise, but Category A’s results were expected after a quiet year-end season. It’s a good thing, as this will help spur Motorshow sales,” said Wong.
In 2024, a quiet first round of COE bidding in January saw premiums dip by as much as 20 per cent before soaring as much as 30 per cent in the second round after the Singapore Motorshow.
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