Category A premiums fall to under S$124,000 in latest COE bidding exercise

Singapore’s Certificate of Entitlement (COE) premiums saw mixed results in the latest bidding exercise held on Wednesday, August 5, 2026. For Category A cars, those with engines of 1,600cc or less and a maximum horsepower of 130bhp, the premium dropped to S$123,890, marking a decline of 1.7 per cent compared to the previous bid of S$126,000. This brings the price for Category A COEs to below S$124,000 for the first time since the system’s inception. Meanwhile, Category B COEs, intended for larger and more powerful vehicles, remained unchanged at S$129,910, though they increased by just S$20 from the prior round. Commercial vehicle COEs, known as Category C, fell by 2.5 per cent to S$91,545, while motorcycle COEs, or Category D, rose 3 per cent to S$10,503. Open category COEs, designated as Category E, increased by 0.8 per cent to S$131,000, reflecting continued demand for flexible registration options. A total of 4,337 bids were submitted during the auction, with 3,242 COEs allocated. This marks the first bidding session of the August to October period, during which the overall COE quota will increase slightly to 19,085, a 0.2 per cent rise from the previous quarter’s 19,052. The expansion is primarily due to an increase in the Category B quota, which will grow by 6.2 per cent to 5,527, while the Category A quota will shrink by 4 per cent to 7,134. These adjustments reflect ongoing efforts to manage vehicle ownership and address concerns about the effectiveness of current classification rules. The Land Transport Authority (LTA) had previously discussed potential reforms to the COE system, including the possibility of merging Category A and Category B COEs into a single category. This idea emerged during a focus group discussion aimed at improving access to cars in Singapore. Transport Government Parliamentary Committee deputy chairperson Edward Chia and fellow MP Ang Wei Neng supported the proposal, noting that manufacturers have increasingly adjusted vehicle specifications to qualify for lower-tier COEs. As a result, the pricing gap between Category A and Category B COEs has narrowed, raising questions about the relevance of existing criteria such as engine size and power output. The LTA acknowledged that the current standards for differentiating between mass-market and premium vehicles have become less effective. In a statement, the authority noted that many participants in the discussions expressed concern over how easily vehicles could be reclassified to meet lower-tier COE requirements. This trend has contributed to a more competitive landscape, particularly for buyers seeking affordable options. The LTA’s comments suggest a growing awareness of the need to refine the classification system to better align with consumer behavior and technological advancements. In addition to the changes in COE prices, the auction results highlight broader trends in the automotive sector. The steady rise in Category E COE prices indicates sustained interest in open-category registrations, which offer greater flexibility for both individuals and businesses. Motor traders, in particular, benefit from these certificates as they allow for quicker vehicle registration without waiting for the next tender. The increase in motorcycle COE prices also reflects a shift in demand, with five instances in 2026 seeing the price exceed the five-digit threshold, an indicator of rising costs for two-wheeled transportation. Looking ahead, the upcoming months will likely see further adjustments to COE quotas and classifications as the government continues to monitor market dynamics. With the new quarterly allocation set to take effect, the focus will remain on balancing supply and demand while addressing the evolving needs of drivers and manufacturers. The outcomes of future auctions will provide valuable insights into whether the proposed reforms will successfully address the challenges facing Singapore’s car ownership system.