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COE quota for August-October to fall 16.5% as record number opt to keep their old cars
SINGAPORE vehicle buyers will be in for a sizeably smaller supply of certificates of entitlement (COEs) for the August-October quota period, in line with the record number of motorists who extended the lifespan of their old cars this year.
The quota, which is determined largely by the number of cars taken off the road in the preceding three months, will shrink by 16.5 per cent to 4,904 a month for cars. This includes the Open category, which can be used for any vehicle except motorcycles but ends up almost exclusively for cars.
The quota for Category A (cars up to 1,600cc and 130bhp) will contract by 25.8 per cent to 2,112 a month. Category B (cars above 1,600cc or 130bhp) will be reduced by 8.6 per cent to 2,083 a month. The Open category shrinks by 5.3 per cent to 709 a month.
The quota for commercial vehicle COEs will contract the most severely, by 27.3 per cent to 566 pieces a month. Motorcycle buyers will have 1,477 COEs a month, or 17.7 per cent fewer.
Industry observers said weakening consumer sentiment on the back of slower economic growth should mitigate the upward pressure on prices that a small quota typically causes.
Also, with a record number of car buyers keeping their cars beyond 10 years, replacement demand will be lower.
THE STRAITS TIMES