Premiums for all COE categories drop, led by large cars with 9% decrease
At S$110,890, Category B touches an almost 12-month low
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[SINGAPORE] Certificate of Entitlement (COE) premiums for all types of vehicles dropped in February’s first round of bidding.
The large car category posted the most significant drop, dipping almost 9 per cent to a near 12-month low.
Car dealers attributed this to reduced demand for Category B cars as those in Category A – electric vehicles (EVs) especially – have become increasingly competitive in offering similar features for lower price tags.
At the close of bidding on Wednesday (Feb 4), the Category B premium was down 8.8 per cent or S$10,744 at S$110,890.
It has not been lower than this since February 2025, when it stood at S$109,598 in that month’s second round of bidding.
“While COE prices have moderated in the recent exercise, they remain elevated, reflecting sustained demand,” a spokesperson for the Land Transport Authority said in a media statement. “We advise car buyers and dealers to be prudent in bidding for COEs.”
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Category B is for cars with engines that have a capacity greater than 1,600 cubic centimetres (cc) or more than 97 kilowatts (kW) of power, or for EVs with over 110 kW of power.
The mainstream car category, A, fell 2.9 per cent or S$3,181 to S$106,320.
The Category A COE applies to 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.
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The commercial vehicle category, C, registered a dip of 0.5 per cent or S$401 to S$74,801.
The motorcycle category, D, was down 6.4 per cent or S$571 at S$8,289.
Category E, the open category which can be used to register any type of motor vehicle except for motorcycles, decreased by 4 per cent or S$4,891 to S$116,000.
Show has gone on
Automotive dealers who spoke with The Business Times said that a market lull after the Singapore Motorshow and a change in buying behaviour were responsible for the fall in car category premiums.
Jason Lim, the managing director of Eurokars Auto, a dealer for BMW, said: “Generally, I think most dealers had secured (the) COEs they needed to fulfil orders taken (at) the Singapore Motorshow.
“(The event) was why we saw a rise in premiums in the previous round, and now the market is quiet, so there is a correction.”
The motor show is a major event for car buyers in Singapore and took place from Jan 8 to 11. With aggressive sales promotions, dealers typically collect many orders at the show, resulting in a spike in COE premiums thereafter.
In the bidding round that followed – January’s second round – categories A and B were up 7.3 per cent and 2.1 per cent, respectively.
“Those shopping for a new car would have done so at the show,” noted Raymond Ng, managing director for Eurokars subsidiary Eurokars EV, the distributor for MG.
He added that with “Chinese New Year festivities gathering pace, car shopping... naturally slowed down in the two weeks leading” into the latest COE bidding round.
From B to A
But EVs have also changed the dynamics between the traditional mainstream and big car categories, as competitive offerings in Category A reduced demand for Category B. “It is clear that consumers have a good variety of value-for-money Category A EV choices atop their shopping list now – and this is reflected in weaker demand for Category B cars,” said Ng.
EVs are now dominant in Singapore: They made up 45 per cent of new car registrations in 2025, compared with hybrids at 38.8 per cent and petrol-only cars at 14.5 per cent.
Because EVs are easier to tune to meet category power limits, most EV brands offer at least one Category A model in Singapore. Some also sell these alongside Category B models, with similar features and equipment, but at a cheaper price reflecting the difference in certificate premium.
In the past, the pricing and equipment specifications, as well as power difference, meant a clear distinction between the two. This is no longer the case.
“Now, buyers have great alternatives to choose between (categories) A and B, in terms of appearance and equipment,” Lim said.
“If you look at Chinese brands, German brands like BMW, even other European brands, they all have Category A models as part of their strategy – the perceived gap (with) Category B has narrowed.”
In recent months, MG introduced two models from its premium sub-brand, IM Motors, to Singapore – one of which is the IM5.
A competitor to the Tesla Model 3, the IM5 has a Category A version priced at S$225,888 with COE, and the next model in the range is a Category B version that costs S$265,888 with COE.
Despite the S$40,000 price difference, the Category A car has most of the features the Category B version does, the key difference being the horsepower – 109 kW versus 300 kW.
The Category A IM6 has been a strong seller for the brand, said Ng.
“With our EVs, we can offer a similar experience to buyers in terms of technology and interior across the models, but customers will tend to opt for less power and a smaller price tag if (that) suits their needs better,” he added.
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