COE premiums continued their upward trajectory in Singapore’s latest tender exercise on April 9, 2025. Driven by higher demand and market anticipation, Category A and B premiums saw price increases, with the former rising by 3.4% to $97,724. As the Land Transport Authority (LTA) ramps up COE supply in 2025, the market remains dynamic, and potential buyers are watching trends closely—especially ahead of The Car Expo in May.
Category A COE Rises 3.4% to Nearly $98K
In the April 9 bidding round, Category A COEs, meant for smaller cars and electric vehicles (EVs), jumped from $94,502 to $97,724—a 3.4% increase. This marks a continued rise in premiums for vehicles with engine capacities of 1,600cc and below or horsepower not exceeding 130bhp. Industry experts attribute this increase to heightened consumer interest after a longer bidding cycle of three weeks instead of the usual two.
Premiums for Larger Cars Continue Climbing
Category B COEs, which are reserved for larger and more powerful vehicles, saw a smaller but still notable rise. Premiums climbed from $116,890 to $117,899, reflecting a 0.9% increase. Demand for high-end vehicles and EVs in this category remains resilient despite broader economic concerns, including international trade uncertainties.
Open Category COEs Hover Above $117K
The Open category (Category E), often used for larger vehicles, edged up slightly to $117,002—just $11 more than the previous round. These premiums reflect general market sentiment across all car types and serve as a bellwether for overall COE demand. Their consistent rise indicates a steady push from buyers seeking flexibility in vehicle registration.
Commercial Vehicle COEs Dip Slightly
Bucking the trend, Category C COEs for commercial vehicles fell by 1.9% to $68,782. This decrease may offer some relief for logistics and transport companies, especially SMEs that rely on commercial fleets. However, analysts note that volatility in this category is common and often tied to business cycles and regulatory changes.
Motorcycle COEs See 4% Increase
Motorcycle (Category D) premiums climbed from $9,511 to $9,889. The growing use of motorcycles for food delivery and courier services continues to fuel demand. While the increase is modest, it reflects the ongoing role of two-wheelers in last-mile logistics and urban commuting.
Demand Spike from Car Buyers Ahead of The Car Expo 2025
Motor dealers reported a surge in showroom activity, with many buyers re-entering the market ahead of The Car Expo, scheduled for May 3–4, 2025. Organized by SPH Media, the event traditionally spurs COE demand. With 1,511 unsuccessful bids in the recent exercise, many are expected to bid again on April 23 to secure their COEs before the event.
COE Supply Boost and LTA’s Market Stabilization Measures
In January 2025, LTA announced an 8% increase in COE supply for February to April and plans to release up to 20,000 additional COEs in the coming years. These efforts aim to stabilize supply amid high demand. At the same time, new regulations for private-hire vehicles and transparency in vehicle history are being enforced to ensure responsible fleet management.
Conclusion
As Singapore’s COE prices trend upward again in April 2025, potential car buyers face a tight market. With The Car Expo approaching and demand showing no signs of slowing, strategic timing and informed decisions are more crucial than ever. Whether you’re eyeing a new car or considering a shift to rental or ride-sharing, understanding COE trends will help you navigate Singapore’s evolving automotive landscape.
