COE premiums rise for most categories; mainstream car premium nears S$100,000
Mainstream car and motorcycle categories reach their highest levels in 2025 at S$97,724 and S$9,889, respectively
[SINGAPORE] Results for the first round of Certificate of Entitlement (COE) bidding in April saw premiums for most categories rise, with that of mainstream cars creeping closer to the S$100,000 mark.
The COE premium for mainstream cars – Category A – rose 3.4 per cent or S$3,222 to S$97,724, its highest result in 2025 so far.
Category A posted its lowest result of the year in February’s first round of bidding at S$85,000, but the premium rose to S$94,502 by March’s second round of bidding.
The Category A COE applies to cars that have engines of up to 1,600 cc in capacity or with up to 97 kilowatts (kW) of power, or for electric vehicles (EVs) with up to 110 kW of power.
Prices for Category B, for larger and more powerful cars, ticked upwards 0.9 per cent or S$1,009 to S$117,899.
Category B is for cars with engines of more than 1,600 cc in capacity or that have more than 97 kW, or for EVs with more than 110 kW.
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The motorcycle category, D, posted the largest increase. It was up 4 per cent or S$378 at S$9,889, which is also a high for 2025.
The category has had five consecutive increases since a low of S$7,721 in January’s second round of bidding.
Category E, the open category that can be used to register any type of motor vehicle except for motorcycles, increased by S$11 to S$117,002.
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Only the commercial vehicle category posted a dip – it was down 1.9 per cent or S$1,307 at S$68,782.
Getting an A
Dealers ascribed Category A’s rise to a number of recent EV introductions and a longer break between bidding rounds.
Lee Hoe Lone, managing director of Premium Automobiles, the distributor for XPeng and Zeekr, said that demand for Category A certificates could have been spurred by a number of EV debuts in the mainstream segment.
China carmaker GAC launched its Aion V sport utility vehicle (SUV) in late February. Tesla debuted a Category A version of its popular Model Y SUV in late March, while China-owned UK mainstream brand MG pulled the covers off its MG S5 EV SUV on Wednesday (Apr 9).
As with Category A EVs launched in the past, such as the BYD Atto 3 and Tesla Model 3, these models are very cost-effective as they are eligible for EV rebates of up to S$40,000 in total, said Lee.
Such models would also entice buyers simply because of the difference in COE premiums. For example, the price gap between the Tesla Model Y in Category A and B versions would be at least S$20,000 on the COE premium alone, he added.
Jason Lim, managing director of Eurokars Auto, a dealer for BMW, also cited new Category A EV models as a reason for its premium increase.
“Category A is much more crowded than it used to be. Before Category A EVs arrived, it was mostly Japanese, Korean and some European luxury brands making up the bulk of demand. Now China EVs and Tesla are strong competition,” he said.
He also pointed out that BMW’s own Category A EV, the iX1, is one of its best-selling models in Singapore.
Similarly, for motorcycles, the introduction of popular, small-capacity motorcycles has also increased demand for COEs, raising premiums.
Eugene Mah, executive director of motorcycle dealer Didi Lifestyle, said: “The introduction of a few key mass market models could be behind the increase in Category D prices.”
These models are popular among commuters and food-delivery riders for their low cost of ownership and ease of use, he added.
Industry sources said that the models include Yamaha’s NMax Turbo and Aerox Turbo.
Is this the real life?
Premium’s Lee, Eurokars’ Lim, and Didi’s Mah all said that the three-week gap between the second round of bidding in March, which ended on Mar 19, and the latest exercise also helped to drive up premiums.
COE bidding takes place twice a month, on the weeks with the first and third Monday of each month, so occasionally some rounds have three weeks between bidding instead of the usual two.
This means dealers have more time to take orders and there are more vehicles to register in that round of bidding, which increases price pressure.
When asked if the conditions of the global stock markets and trade situation could affect COE prices, observers were mixed.
Eurokars’ Lim said that the results highlight the uniqueness of the COE system, adding: “Investors are jittery, there may be a recession, there certainly is likely to be a trade war – but with the Singapore car market, it is business as usual. It’s a controlled market – supply is artificially limited. If anything, I thought COE prices would have eased more by now.”
Ng Choon Wee, commercial director for Hyundai distributor Komoco Motors, said it could reduce COE premiums further down the line. He added: “The bleak economic outlook from PM Wong’s ministerial statement on inflation, slower growth and uncertainties might dampen the COE prices from going higher.”
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