Singapore Sees Major Drop in COE Premiums Across Vehicle Categories
Singapore, Nov 10, 2023 – In a notable development in Singapore’s automotive sector, the first Certificate of Entitlement (COE) bidding for November 2023 has revealed significant decreases in premiums across various vehicle categories. This change has been keenly observed by both industry experts and consumers, signaling a potential shift in the automotive market.
Detailed Overview of Premium Changes
- Category A: Cars with engine capacity up to 1600cc or 130bhp, and electric vehicles (EVs) with up to 110kW saw a decrease in premium by S$10,311, closing at S$95,689.
- Category B: This category, which includes cars above 1600cc or 130bhp and EVs with more than 110kW, experienced a substantial decrease in premium of S$40,000, settling at S$110,001.
- Category C: Goods vehicles and buses witnessed a premium drop of S$6,789, closing at S$78,001. A total of 281 bids were placed for 190 COEs available in this category.
- Category D: Representing motorcycles, this category observed a premium decrease of S$312, with the final figure standing at S$10,889.
- Category E: Covering all vehicles except motorcycles, there was a significant decrease in premium by S$32,993, closing at S$125,011.
Industry Response and Analysis
Industry insiders have attributed these premium reductions to the recalibration of COE supply, including the allocation of unallocated COEs from previous bidding exercises. This strategic adjustment in COE supply has played a crucial role in stabilizing prices and is seen as a welcome development by market participants. Jason Lim, the managing director of Eurokars Auto, a BMW authorized agent, expressed relief at the increased COE supply, indicating a positive impact on market dynamics. The period following Cars@Expo was reportedly quiet on the retail front, with consumers adopting a ‘wait-and-see’ approach regarding COE price corrections.
Implications for the Automotive Market
The decrease in COE premiums could influence consumer behavior, potentially leading to increased sales in the automotive sector. The market is likely to keep a close watch on the evolving trends and responses from both consumers and industry players as Singapore navigates these changes in its automotive landscape.
Also learn about COE Premiums Take a Dip: Cat B Sees S$40,000 Decline.
