PREMIUMS for Certificates of Entitlement (COEs) needed to register passenger cars have risen in April’s second round of bidding, driven by sales from The Car Expo show last weekend.
This marks the second consecutive rise for passenger car COE premiums after Categories A, B and E all rose in April’s first round of bidding.
The mainstream car category, A, posted the largest rise. It increased 5.6 per cent or S$5,010 to S$94,010.
This marks the category’s highest price in 2024 so far. It was last at a similar level in November 2023’s first round, at S$95,689.
The Category A COE applies to mainstream cars that have engines of up to 1,600 cubic centimetres (cc) in capacity or with up to 97 kilowatts (kW) of power, or for electric vehicles (EVs) with up to 110 kW of power.
COE premiums for larger, more powerful cars – Category B – rose 0.7 per cent or S$667 to S$102,001.
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Unlike Category A, it did not reach its 2024 high of S$112,000 set in January’s second round of bidding.
Category B is the category for cars with engines of more than 1,600 cc in capacity or that have more than 97 kW, or for EVs with more than 110 kW of power.
Category E posted a rise of 2.2 per cent or S$2,247 to S$103,249.
It is the Open category, which can be used to register any type of vehicle except for motorcycles, but is typically used to register Category B cars.
Prices for Category C, applicable to commercial vehicles and buses, increased 1.5 per cent or S$1,001 to S$68,502.
Prices for Category D, applicable to motorcycles, decreased 0.1 per cent, or S$10 to S$9,990.
Show and go
Ng Lee Kwang, board advisor for Goldbell Group, said that the rise in passenger car COE premiums was “definitely” the result of The Car Expo.
“After a big show like The Car Expo, COE premiums always swing upwards,” he said.
He told The Business Times that mainstream car brands had done a healthy level of sales at the event, including BYD, Mazda and Toyota.
Sabrina Sng, managing director for Lotus, Polestar and insurance at dealership group Wearnes Automotive, said that the larger rise in Category A is a reflection of The Car Show’s demographic, as it targets mainstream buyers.
The event, which took place on Apr 13 and 14 at Singapore Expo, is one of Singapore’s major car shows along with the Singapore Motorshow.
Shows like these can have both a direct and delayed effect on passenger car COE premiums.
BT reported earlier this month that dealers rushing to complete registrations for orders taken at the Singapore Motorshow in January could have been a contributing factor to COEs spiking in April’s first round of bidding.
But industry observers said that The Car Expo aside, market demand remains weak.
Nicholas Wong, chief executive officer for authorised Honda dealer Kah Motor, said that on the whole, car sales have remained tepid since COE premiums began to rise from February.
He highlighted that despite the rise in price, the number of bids received for categories A and B fell significantly.
Bids received for Category A fell 27.7 per cent to 1,390, while bids received for Category B fell 16.6 per cent to 1,008.
The number of bids received is a gauge of market interest or price pressure for each category.
For May, industry observers expect prices to remain stable.
“The Land Transport Authority will announce the COE quota for May to July soon. I expect Category A to increase by around 15 per cent and Category B by 9 per cent. This should help regulate premiums,” said Wong.
Wearnes’ Sng said: “Looking at the recent premiums for Category E, the market expects COE prices to hold at least.”
Category E COEs can be used to register any vehicle and have a three-month validity period, so they are often acquired by dealers as a buffer against future demand. If Category E premiums are considerably higher than Category B prices, it means dealers expect COE prices to rise.
