Mainstream car COE premium rises to just under S$100,000; most other categories fall
The large car premium is stable, but commercial vehicle and motorcycle categories are down more than 5 per cent
[SINGAPORE] The Certificate of Entitlement (COE) premium for the mainstream car category rose to just shy of the S$100,000 mark, while premiums for most of the other categories fell in April’s second round of COE bidding.
Category A, for mainstream cars, rose 1.8 per cent or S$1,776 to S$99,500.
The Category A COE applies to cars with engines of up to 1,600 cubic centimetres (cc) in capacity or with up to 97 kilowatts (kW) of power, or for electric vehicles (EVs) with up to 110 kW of power.
This is the category’s highest premium for 2025 so far, with it having steadily risen from a low of S$85,000 in February’s first round of bidding, and eclipsing the previous high of $97,724 set in April’s first round of bidding.
The premium for Category B, for larger and more powerful cars, was steady. It fell 0.8 per cent or S$896 to S$117,003.
Category B is for cars with engines of more than 1,600 cc in capacity or with more than 97 kW, or for EVs with more than 110 kW.
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The premium for Category C, applicable to commercial vehicles and buses, decreased 5.5 per cent or S$3,781 to S$65,001.
Prices for Category D, used for motorcycles, dipped 5.9 per cent, or S$580, to S$9,309.
Category E, the open category which can be used to register any type of motor vehicle except for motorcycles, rose by 0.9 per cent or S$999 to S$118,001.
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Very high demand
Car dealers BT spoke to said that the continued rise in Category A premium was unexpected and may have been driven by strong demand for EVs – and uncertainty about the continuation of rebates for them.
Anthony Teo, managing director of BYD distributor and dealer Vantage Automotive, said: “With the announcement of the new, increased COE quota, I thought it would make more buyers wait and see and hold back. But (Category A) has gone up quite a bit, which I did not expect. That means Category A demand is very, very strong.”
On Apr 16, the Land Transport Authority announced the COE quota for the period May to July, with the overall COE quota increasing by 6.4 per cent to 18,232, compared with the period from February to April. Category A will increase by 10 per cent to 7,511, while Category B will grow by 5 per cent to 4,689 pieces.
Nicholas Wong, the chief executive officer for authorised Honda dealer Kah Motor, said: “COE supply is rising and everyone is expecting COE premiums to come down, but instead it has steadily increased to nearly S$100,000 (from February).”
He pointed out that the number of bids received in Category A compared to the quota was almost double at 1.9. In February’s first round of bidding, when Category A was at its nadir for 2025, the ratio was around 1.3.
Hot to go
Teo, Wong, as well as Ng Choon Wee, commercial director for Hyundai distributor Komoco Motors, said that a large number of EV models competing in Category A have contributed to high premiums.
As Category A premiums are typically less than that of Category B, and EVs receive up to S$40,000 in incentive, “every car brand is trying to get into the Category A EV segment”, said Wong.
For example, most of BYD’s most popular cars are in Category A, including the M6 and Atto 3 models. BYD is the best-selling brand in Singapore for the first quarter of 2025 and sold 1 in 5 cars here. At least three Category A Evs have launched here since February, including the Tesla Model Y, MG S5 and GAC Aion V.
Vantage’s Teo observed that demand for BYD’s Category A EVs has continued, despite the higher premium, which shows that buyers are focused on this segment.
But Kah Motor’s Wong said that uncertainty about those incentives could be fuelling buying now, leading to increased COE price pressure.
EVs can receive up to S$40,000 total incentives from the EV Early Adoption Scheme and Vehicle Emissions Scheme, both of which will run until the end of 2025.
“The authorities will review the rebates at the end of this year, and of course there is the possibility that it could be reduced or removed, but nobody knows,” he said.
“There is an anxiety that these (rebates) will not last forever, and I’d better buy now or lose out.”
But even with more COE supply incoming in May, dealers think COE premiums may not fall, such is the strength of demand.
“Demand for both Category A and B is very high. (Premiums) are not going to come down soon,” said Vantage’s Teo.
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