Passenger car COE premiums reach highs not seen since late 2023 as Category A nears all-time record
The COE for mass-market cars is up 2.5% at S$104,524, close to October 2023’s S$106,000
[SINGAPORE] Certificate of Entitlement (COE) prices for passenger-car categories rose to levels not seen since late 2023, with car categories breaking new records.
In August’s second round of bidding on Wednesday (Aug 20), the Category A premium rose 2.5 per cent or S$2,515 to S$104,524.
The category has not registered a higher price since October 2023’s second round of bidding, when it reached an all-time high of S$106,000.
The Category A COE generally applies to mass-market cars. These have engines of up to 1,600 cubic centimetres (cc) in capacity or with up to 97 kilowatts (kW) of power, or are electric vehicles (EVs) with up to 110 kW of power.
Category B’s premium went up just 0.7 per cent, or S$902, to S$124,400. The category last saw a higher price in December 2023’s first round of bidding, at S$130,100.
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$2,667, at S$125,001.
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Like for categories A and B, the Category E premium was last higher in late 2023; in December 2023’s first round of bidding, it was S$133,388.
The premium for the commercial vehicle category, C, went up 3.1 per cent to S$72,190, marking the highest level since October 2024’s second round of bidding, when it was S$72,939.
Category D, used for motorcycles, was the sole segment to drop in this round of bidding: It dipped 4.1 per cent or S$380 to S$8,809.
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Competition blitz
Most industry observers were unsurprised by the result.
Car dealers The Business Times spoke to said that passenger car COE premiums have been at elevated levels for some time, due to intense competition in the EV segment as well as bidding by private-hire car (PHC) fleets.
Jason Lim, the managing director of Eurokars Auto, a dealer for BMW, said: “(COE premiums) have been quite high for most of the year now. If you look at Category A, it has been hovering around high-S$90,000 to S$100,000 for some months, for example. So all you need is a small push to get into this territory.”
He noted that Category A is crowded with models. EVs, especially, are selling well, as they receive up to S$40,000 in incentives; hybrids receive a maximum of S$2,500, and conventional cars, none.
Lim said: “BYD accounts for around 800 COEs a month. If you add in major players like BMW, Mercedes-Benz and Toyota, that’s enough for a big chunk of the quota, even without counting the other brands. All are chasing for COEs to get the registration (sales) numbers up.”
Anthony Teo, managing director of BYD distributor and dealer Vantage Automotive, concurred. He said demand continues to be very strong, with multiple brands introducing more Category A models for sale here.
Teo also noted that PHC fleets were active in recent rounds. “Some of them are due for fleet renewals, so that is probably a contributing factor as well.”
The BYD factor
Dealers said that as the market leader, BYD’s sales and aggressive sales tactics have influenced COE premiums. As at July 2025, it registered 5,547 cars and was the top brand in Singapore.
It launched two models in the past weeks: the Sealion 6 plug-in hybrid and the Atto 2 EV, a small sport-utility vehicle that is marketed as its least expensive model to date, from S$152,388 with COE.
Teo said that BYD has taken orders for around 100 units of the Atto 2 so far, which is modest by the company’s standards.
Vincent Ng, an automotive consultant, said the Atto 2 may not sell as well as BYD’s top models such as the Sealion 7 or Atto 3, because the cost difference is not attractive enough to lure customers to buy a smaller lifestyle vehicle.
However, it could have had an effect in boosting sales nonetheless: “It was an opportunity for BYD to draw customers into the showroom to buy another car. At just S$13,000 more for the larger Atto 3, that would have attracted customers looking for more space.”
But Ng noted that the entire EV space has become competitive, especially with other Chinese brands now offering value propositions that can compete with BYD. That has intensified bidding for COEs, and the sales numbers reflect that.
“Based on July sales numbers, competitors have been nibbling at BYD’s market share,” he added.
China brand Chery registered 109 EVs in July, compared to 149 in the first half, while MG registered 113 and 311 units in the same periods, respectively. Volvo clocked 53 units in July, largely a result of its Category A EX30 EV, compared to 124 units in H1, while Xpeng registered 85 and 376 EVs, respectively.
The competition will only get hotter as brands increase efforts to ramp up sales before the year’s end.
“I think we will see competition intensify towards the end of the year, especially since BYD has made a bold claim to sell 10,000 cars in Singapore this year,” said Ng.
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