In the latest Certificate of Entitlement (COE) bidding exercise on April 23, premiums for Category A and Open Category (Category E) vehicles in Singapore rose slightly, continuing a trend driven by strong demand and upcoming changes in COE quotas. With increased vehicle deregistrations expected in 2025 and a growing interest in electric vehicles (EVs), the market remains tight and competitive. Here’s a breakdown of the latest COE results and what buyers can expect in the months ahead.
COE Premiums Rise for Category A and E in April 23 Tender
In the final bidding exercise of the February to April COE quota period, the Category A COE premium rose 1.8% to $99,500, up from $97,724 in the previous round. This category covers smaller and less powerful cars, including many EV models.
The Open Category COE, which can be used for any vehicle type other than motorcycles but is typically reserved for larger, high-performance cars, increased by 0.9% to $118,001, from $117,002 previously.
Quota to Increase from May to July 2025
Starting in May 2025, the total COE supply will rise 6.4%, increasing from 17,133 to 18,232 certificates. This may help ease some of the upward pressure on COE prices, though industry experts remain cautious.
COE Prices Fall for Other Vehicle Categories
Not all COE categories saw price increases. Here’s how the others performed in the April 23 exercise:
- Category B (larger, more powerful cars and EVs):
Fell 0.8% to $117,003 (from $117,899) - Category C (commercial vehicles):
Dropped 5.5% to $65,001 (from $68,782) - Category D (motorcycles):
Declined 5.9% to $9,309 (from $9,889)
Why Category A and Open COE Prices Are Climbing
Motor dealers and industry experts suggest that the slight price hikes are due to excess demand from buyers concerned about future increases in COE premiums. Two key factors are influencing this:
- Vehicle Deregistrations in 2025:
A significant number of cars will reach the 10-year mark and be scrapped, prompting early replacement planning. - Rising EV Adoption:
Category A now includes a growing range of EVs, boosting competition in that segment.
Mr. Anthony Teo, managing director at Sime Motors Vantage Automotive, mentioned that while some buyers may delay bidding due to the announced quota increase, demand still exceeds supply—especially in Category A.
Dealers Anticipate Continued Demand Amid Upcoming Car Expo
Ms. Corinne Chua, managing director of Volvo Cars at Wearnes Automotive, highlighted that some dealers may be actively bidding ahead of The Car Expo 2025, set for May 3 and 4. While she doesn’t expect the current COE increase to affect show sales, she foresees further price hikes post-event due to renewed consumer interest.
Meanwhile, Mr. Nicholas Wong, CEO of Honda dealer Kah Motor, emphasized that unsuccessful bids in Category A (997) nearly matched successful ones (1,124)—a sign that anxiety and high demand continue to drive the market.
Conclusion
With COE premiums for Category A and Open Category vehicles climbing slightly in April 2025 and continued market pressure from deregistrations and EV growth, Singaporean car buyers should stay informed and act strategically. The upcoming quota increase may bring temporary relief, but demand is expected to remain robust. As the market gears up for The Car Expo and a new COE quota cycle, prospective buyers will need to monitor prices closely and be ready to act.
