SINGAPORE – The price of a Category A certificate of entitlement (COE) increased by 4.2 per cent on April 22 to $123,010, surpassing the Category B premium of $121,001.
This is the second time in two months that COEs for mass-market cars cost more than those for premium cars. The last instance was at the close of the tender exercise on Feb 20.
It was also the highest since the record of $128,105 was set in October 2025.
In the previous tender on April 8, the premium for Category A, which is for smaller and less powerful cars and electric vehicles (EVs), ended at $118,000.
The price of the Category B certificate, for larger, more powerful cars and EVs, held steady from April 8 at $121,001.
The premium for the Open category, or Category E, rose by 3.3 per cent from $121,001 to $125,002.
Certificates in this category can be used to register any vehicle type except motorcycles, but are typically used for bigger cars.
As these are transferable, motor traders secure them to have the flexibility to register cars without having to wait for the next tender exercise.
At $83,501, the price of a commercial vehicle (Category C) COE went up by 4.4 per cent from $80,001 two weeks ago.
The COE price for motorcycles (Category D) was $9,290 – a 7.1 per cent drop from $10,000.
Associate Professor Walter Theseira, a transport economist at the Singapore University of Social Sciences, attributed the occurrence of Category A premiums surpassing those of Category B to the merging of both vehicle markets, which has caused the price difference to “go away”.
He said Category A vehicles are no longer smaller or less well-equipped due to technological developments, especially for mass-market EVs, where electric motors now allow buyers to have the “same driving experience” as that of Category B vehicles.
Prof Theseira added that dealers could code an electric vehicle to produce a lower electrical output – on which the categories are based – to allocate the car to Category A.
He said this raises questions about whether the current COE categorisation is still relevant, given that the same range of vehicles exists in both Categories A and B.
Looking forward, Prof Theseira said it is “entirely possible” for Category A prices to again exceed those of Category B in upcoming exercises.
However, dealers, who were previously going for Category A because of the lower premiums, will put in fewer bids for this category now that the premiums have gone up, and this will push the category back down, he added.
The Land Transport Authority said that its review of the COE categorisation is ongoing, noting that Category A prices had exceeded those of Category B, probably because of “continued competitive electric car prices”.
In March, Acting Transport Minister Jeffrey Siow said during the debate on his ministry’s budget that the authority will look into improving the categorisation of cars in the COE system and gather views from motorists, dealers, car manufacturers and academics.
Mr Ng Choon Wee, commercial director of Hyundai distributor Komoco Motors, noted that some dealers may be encouraging potential buyers to purchase EVs, the majority of which belong in Category A, given the current hike in fuel prices. This has further stimulated demand for Category A COEs.
He expects COE prices to continue surging as dealers attempt to secure certificates for potential orders at The Car Expo event from May 9 to 10.
Mr Ng also noted that there were many unsuccessful bids in the latest tender, with twice as many bidders as there were Category A certificates, leading to nearly half of the 2,410 bids for 1,265 certificates being unsuccessful.
In Category B, there were 1,194 bids vying for 811 COEs, which meant 383 bidders failed to secure certificates.
Given such excess demand for COEs, premiums will remain high, he said.
Ms Corinne Chua, managing director of Volvo at Wearnes Automotive, foresees that Category A premiums may stay higher than those of Category B “for a while” as a result of high demand, and that prices may even increase further after The Car Expo.
She added that many cars are reaching the end of their 10-year COE cycles and owners are looking to change their cars, so high demand for COEs is likely to persist.
