In the latest development in Singapore’s automotive sector, there has been a notable shift in the Certificate of Entitlement (COE) premiums. The recent bidding exercise witnessed a decrease in premiums for smaller cars, contrasting with an increase for larger vehicles and Open Category COEs.
COE Premiums Trends
- Category A Cars: Premiums for smaller cars (Category A), which include vehicles 1,600cc and below with horsepower not exceeding 130bhp, fell to S$85,001, a decrease from the previous S$95,689.
- Category B and Open Category: In contrast, premiums for more powerful cars in Category B rose to S$135,336 from S$110,001. Similarly, Open Category COEs, often used for larger cars, increased to S$135,002 from S$125,011.
- Commercial Vehicles and Motorcycles: Premiums for commercial vehicles, including goods vehicles and buses, decreased to S$73,889 from S$78,001. Motorcycle premiums also saw a reduction, closing at S$10,001, down from S$10,889.
Bid Statistics and Quota Adjustments
- Bidding Statistics: A total of 3,912 bids were received, with a quota of 2,459 COEs available.
- Historical Highs and Policy Adjustments: October witnessed record highs in COE prices, with Category B reaching S$150,001 and the Open Category hitting S$158,004. To address these fluctuations and maintain Singapore’s zero-vehicle growth policy, Acting Minister for Transport Chee Hong Tat announced that more COE quotas would be brought forward from peak years to current supply troughs.
- Future Supply Projections: The COE supply for Categories A, B, and C is expected to increase significantly from the second half of 2024, with peak supply years projected from 2026 to 2027.
Conclusion
These changes in COE premiums reflect ongoing adjustments to balance Singapore’s automotive market demand and supply, while adhering to the country’s broader transportation and environmental policies. The COE system continues to play a crucial role in regulating vehicle ownership in Singapore, with implications for traffic management and environmental sustainability.
Also learn about Significant Decrease in COE Premiums in Singapore.
