COE premiums for smaller cars hit record S$128,105 as buyers rush before EV incentive cuts
Singapore’s Certificate of Entitlement (COE) prices surged again, with Category A reaching a record S$128,105 (US$98,904) on 8 October 2025. The Land Transport Authority (LTA) cited increased demand after a three-week bidding gap and a car roadshow, while dealers pointed to pre-emptive buying ahead of EV rebate cuts.
- Certificate of Entitlement (COE) prices for Category A cars reached a record S$128,105 (US$98,904), the third consecutive high.
- The Land Transport Authority (LTA) attributed the rise partly to a longer bidding gap and post-roadshow demand.
- Dealers suggest buyers are accelerating purchases ahead of reduced electric vehicle (EV) incentives from 2026.
SINGAPORE: The Certificate of Entitlement (COE) premium for smaller cars in Singapore surged to a record S$128,105 (US$98,904) on 8 October 2025, marking the third consecutive increase in Category A prices.
According to data from the Land Transport Authority (LTA), this represents an increase of about S$9,100 from the previous round’s S$119,003. The jump reflects continued pressure on vehicle demand despite cooling measures and a constrained quota supply.
Premiums for Category B, covering larger and more powerful cars, also rose from S$136,890 to S$141,000. In contrast, Open Category COEs, typically used for large cars, fell slightly to S$140,009 from S$140,502.
Commercial vehicle premiums increased from S$72,501 to S$74,301, while motorcycle COEs climbed from S$9,209 to S$9,810.
LTA said that the higher prices were partly driven by the three-week gap between bidding exercises, compared with the usual two-week interval. The authority also noted that a late-September car exhibition, The Car Expo on 27 and 28 September, likely spurred fresh demand as dealers secured new orders.
“More broadly, the lower costs of EVs, especially from China, as well as the reduction of incentives for cleaner energy vehicles, have also added to demand,” LTA stated. It advised prospective buyers to exercise prudence when bidding for COEs.
The government had announced on 8 September that incentives for electric vehicles would be scaled down from 2026, although existing initiatives promoting low-emission cars would continue.
Car dealers told local media that the surge reflected growing urgency among buyers hoping to secure vehicles before rebate reductions take effect. “We’re seeing more customers trying to lock in purchases now rather than risk higher costs later,” one dealer commented.
Observers suggest that while the current spike could stabilise in the next few bidding rounds, prices are unlikely to ease substantially in the near term given limited COE supply and strong private demand.
The COE system, introduced in 1990, is a key tool in regulating Singapore’s vehicle population by requiring buyers to bid for a limited number of ownership certificates valid for ten years.
