COEs for large cars up 4.3% at S$126,236, mainstream cars near S$125,000

[SINGAPORE] The large car and commercial vehicle categories were the major gainers in May’s first round of Certificate of Entitlement (COE) bidding on Wednesday (May 6), as the mainstream car category sustained its high level.

Category B was up 4.3 per cent or S$5,235 at S$126,236.

It applies to larger, more powerful 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 with more than 110 kW of power.

The gain was enough to reverse the previous round’s premiums, where the mainstream category outstripped the large car category in an inversion of typical results.

Automotive market observers said the increased demand for large car certificates was a result of the category’s lower premium – relative to mainstream cars – in the preceding bidding round.

Adelene Tan, managing director of BYD distributor and dealer Vantage Automotive, said: “This time around, demand for Category B is stronger as customers shifted purchases towards that category.”

Category A, for mainstream cars, rose 1.4 per cent or S$1,780 to S$124,790.

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.

This marks the sixth consecutive increase for the category since February’s first round of bidding, edging it closer to its all-time high of S$128,105.

SEE ALSO

LTA apologises for e-mail gaffe in circular sent to potential EV charger owners 

Is it time to scrap COE categories for cars? 

‘Fundamental reshaping’ of Singapore car market as China and EV brands storm up the charts while legacy players hit hard

COEs: Mainstream car category tops bidding at S$123,010 as demand ‘just too strong’

Autobahn Rent A Car directors declared bankrupt over S$50 million each owed to DBS

Rolls-Royce unveils EV flagship of new bespoke line as demand for exclusive cars hits record

More

The demand for Category A certificates has been driven by strong interest in mainstream EVs, especially those from China.

Category C gained 4.8 per cent or S$3,978 to S$87,479. It has followed a similar trajectory as Category A in 2026, steadily rising since February’s first round of bidding.

The premium for Category D, used for motorcycles, increased 1.7 per cent or S$162 to S$9,452.

Category E, the open category which can be used to register any type of motor vehicle except for motorcycles, was up 2.2 per cent or S$2,698 at S$127,700.

Trading places

Observers said Category B’s rise was a repeat of a situation seen earlier this year, in which the price bounced back in the round after Category A posted a higher premium. This resulted in a strong spike in demand.

With an atypical price deficit compared with Category A, some consumers opted for Category B models instead. Dealers also ran promotions for larger, more powerful cars to boost sales.

Citing “a big jump of around S$5,000”, Vantage’s Tan described the demand for Category B in the latest bidding round as “much stronger”.

“After the last round, (brands) with Category B models naturally focused on pushing sales of those cars through promotions or heavier marketing,” noted Jason Lim, managing director of Eurokars Auto, a dealer for BMW.

“From the sales team’s perspective, it is natural to react that way and then see an uptake in Category B sales afterwards,” he added.

Market leader BYD was one brand that took this approach, which seems to have paid off.

BYD moved “good numbers” of Category B models, said Tan, including those from its popular Sealion series of SUVs – namely the Sealion 6 and Sealion 7.

Industry sources also said that new Category B models may have spurred demand as well.

In late March, US EV brand Tesla launched a six-seat version of the Model Y SUV, its most popular car, as a Category B version only. In the first quarter of 2026, Tesla registered 1,515 vehicles – leaping to third in registration rankings, ahead of Mercedes-Benz and BMW.

China brand Chery launched its Jaecoo 5 EV on May 5 at S$169,999 with COE, making it one of the least expensive Category B cars on the market.

“As a consumer, if you walk into a showroom and see that (Category A’s premium is higher than Category B’s), and the price gap (with) more premium models (has shrunk), naturally you will go for those,” added Eurokars’ Lim.

Ready for the show

Observers believe that car category premiums are likely to rise in the next round, given the latest results and a car show – the Car Expo – taking place this weekend.

“For Category A, demand was surprisingly strong. That’s also notable because the last two weeks were quiet and we didn’t see outstanding retail activity,” said Tan.

She added that there may have been more intense competition for certificates rather than overall demand, resulting in higher bids.

“Category A has risen significantly in the past few rounds, which would usually stunt order intakes. This round’s bidding behaviour was much stronger, so that might mean dealers are trying to secure COEs before the Car Expo.”

Said Lim: “For Category A, it seems demand is so high that even two or three rounds without a car show cannot cool it off. The next round is after the (Car Expo), which probably means that premiums will be higher.”

The Land Transport Authority also flagged the car show as a potential contributing factor to increased premiums in the next round.

“We note the upcoming Car Expo, which from past experience is likely to lead to elevated COE prices that negate discounts for purchases during this period. We urge car buyers to bid prudently,” said a spokesperson for the regulator.