[SINGAPORE] The Certificate of Entitlement (COE) premium for mass-market cars hit a new record of S$107,889 in September’s first round of bidding.
Premiums for Category A rose 3.2 per cent or S$3,365 to S$107,889, eclipsing the previous all-time high of S$106,000 set in October 2023’s second round of bidding.
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, as well as electric vehicles (EVs) with up to 110 kW of power.
COE premiums for cars – categories A, B and E – have been trending upward in 2025, reaching levels not seen since late 2023.
Premiums for Category B rose 2.5 per cent or S$3,101 to S$127,501, a new peak for 2025.
Category E premiums increased 2.3 per cent or S$2,900 to S$127,901, also setting a new record for the year. The open category can be used to register any type of motor vehicle except for motorcycles, but is typically used to register cars for Category B, the most expensive category.
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Prices for Category C, applicable to commercial vehicles and buses, decreased 0.9 per cent or S$634 to S$71,556.
Prices for Category D, used for motorcycles, increased 3.3 per cent, or S$292, to S$9,101.
Getting amped up
Industry observers said that electric vehicles (EVs) in Category A, especially those from Chinese brands, have been driving sales and pushing premiums to higher levels amid robust demand.
Ng Lee Kwang, director of new and pre-owned car dealership Octagon Motors Group, said: “EV sales are driving up Category A COE premiums because there are many popular models in the category now available from many brands.”
Lee Hoe Lone, managing director of Premium Automobiles, a distributor of Chinese brands Avatr, Xpeng and Zeekr, said that a plethora of such models entered the market in 2025.
“While traditional petrol cars need a lot of time to be tuned to meet regulations, with EVs, it’s a lot faster. So now we see the EV brands introducing Category A models, because that’s where the sales numbers are,” he said.
The popular Category A EVs introduced this year include the Tesla Model Y, launched in March; the MG S5 in April; and the GAC Aion V in July.
The sales of market leader BYD grew significantly after it introduced Category A models, first with the Atto 3 sport utility vehicle in 2023, then the Seal sedan in 2024. It will introduce a Category A version of its current bestseller, the Sealion 7, this month.
“Just like in China, all the other EV brands are after a slice of BYD’s pie,” said automotive consultant Say Kwee Neng. “They saw the success BYD had with Category A models and are desperately trying to catch up to (that).”
Observers also said that demand for EVs in general could also be accelerating as deadlines for current incentive schemes loom.
In Singapore, these vehicles receive combined incentives of up to S$40,000 under two schemes. The EV Early Adoption Incentive (EEAI) shaves 45 per cent off the additional registration fee, limited to S$15,000, and the Enhanced Vehicular Emissions Scheme grants up to S$25,000 in rebates.
Introduced in 2021, EEAI originally provided a rebate of up to S$20,000, but this was reduced to S$15,000 when the scheme was renewed in 2023.
Both schemes will run until the end of 2025, and there has been no indication from the government on whether they will be renewed or concluded.
Dealers said that this lack of clarity could contribute to premiums rising.
Anthony Teo, managing director of BYD distributor and dealer Vantage Automotive, said: “We really don’t know if incentives will be removed, reduced or maintained. They won’t be increased, for sure. From an industry perspective, we are all still waiting for advice from the government.”
Premium’s Lee added: “There is a bit of uncertainty on incentives. The government may reduce them or remove them entirely. But nobody knows at this point.”
Some dealers have also been accused of using scare tactics to convince consumers to sign on the dotted line.
“Some Chinese EV brands are using the deadline for rebates to push customers to buy now or risk a potential reduction of rebates in 2026. The authorities should step in and calm the market, or this will get ugly real fast,” noted Say.
Despite Category A’s new record, industry observers do not see its velocity slowing.
Lee noted that with the price gap between categories A and B remaining significant, Category A models would continue to be in high demand.
“(Category A) is cheaper by around S$19,000. With that sort of difference, Category A models can definitely still achieve good sales,” he said.
Say added: “From where we sit, it can only go up. The gulf between categories A and B is still big enough to drive Category A sales.
“Meanwhile, I don’t think market leaders like BYD are going to take their foot off the pedal. Along with private-hire car fleet activity, that can only mean COE prices will continue to rise.”
