Mainstream car COE rises 7.3%, large cars up 2.1% in post-motor show event

[SINGAPORE] Certificate of Entitlement (COE) premiums for the second round of bidding in January closed mostly higher, with the mainstream car category leading the way.

It is the first round of bidding after the Singapore Motorshow 2026, which took place from Jan 8 to 11 at the Suntec Singapore Convention & Exhibition Centre.

Industry observers said the increase for passenger car categories was driven by buying at the motor show, where the many Category A electric vehicle (EV) models that were launched could have driven demand.

The Category A premium rose 7.3 per cent or S$7,492 to S$109,501.

The Category A COE applies to mainstream cars with engines of up to 1,600 cubic centimetres (cc) in capacity or with up to 97 kilowatts (kW) of power, or for EVs with up to 110 kW of power.

The Category B premium rose 2.1 per cent or S$2,534 to S$121,634.

It is applicable to 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.

Category C, used for commercial vehicles and buses, posted a decrease of 0.4 per cent or S$301 to S$75,202.

Category D, used for motorcycles, increased 2 per cent, or S$171, to S$8,860.

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Category E, the Open category which can be used to register any type of motor vehicle except motorcycles, decreased by 0.9 per cent or S$1,109 to S$120,891.

Showing up

Dealers who spoke to The Business Times said the bump in passenger car COE premiums was the expected result of increased demand from the Motorshow.

Anthony Teo, managing director of BYD distributor and dealer Vantage Automotive, said: “We expected that premiums for categories A and B would increase this round, which is what usually happens on increased buying at the Motorshow.”

But the greater demand for Category A certificates is likely to have been driven by EV buyers, say dealers.

EVs have lately been a key demand driver for Category A COEs.

With incentives lowering their prices relative to those of conventional or hybrid cars, EVs are the most price-effective models on the market now. Almost every major EV brand has a Category A offering.

For BYD, currently the top-selling car brand, Category A models did “particularly well” at the show, said Teo, referring to the Seal 6 sedan and M6 multi-purpose vehicle.

But demand for Category A models was higher as a result of the introduction of a number of new EVs in this category at the show.

Lee Hoe Lone, managing director of Premium Automobiles, the distributor for Avatr, Deepal, XPeng and Zeekr, said: “Category A cars were more popular at the Motorshow because they are priced effectively, and there is a lot of consumer interest in this segment, as well as competition.”

He also noted that many new Category A EVs were introduced at the show, which may have driven even more consumer interest and purchases.

This included the MG S6, Dongfeng Vigo, Proton e.MAS 7 – all sport utility vehicles – and the GAC Aion UT compact hatchback.

Be chill

In contrast, Category B registered lower demand because of the premium rising in the round before the Motorshow.

“Category B already rose to the near-S$120,000 level before the Motorshow, and that might have kept some buyers away,” said Chong Kah Wei, the managing director of Mazda Singapore for Eurokars Group.

In January’s first round of bidding, Category B rose 3.5 per cent to S$119,100, defying industry expectations in what was then a quiet market for car retail sales.

Category A was down 6.8 per cent to S$102,009, in contrast.

As reported in BT, dealers said that the soft launch of some Category B models before the Motorshow meant buyers might have already concluded purchases ahead of the event, diffusing demand.

Other observers said that those bidding for COEs – dealers or otherwise – could have been exercising more cautious bidding, with an impending increase in COE quotas.

Nicholas Wong, chief executive officer for authorised Honda dealer Kah Motor, said: “Dealers and bidding parties may be exercising caution with expected increase in quota from impending Land Transport Authority announcements.”

COE quotas are announced every three months; the quota for the next period – February to April 2026 – is expected soon.

With a significant tranche of the car population approaching 10 years in age and more de-registrations in 2026, COE supply for passenger cars is expected to increase by 20 per cent to around 50,000 for the year.