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COE premiums for larger cars and Open category hit 13-month highs

COE premiums for larger cars and the Open category have reached 13-month highs, with Category B at S$121,501 and Category E at S$123,000. Both represent significant increases from December 2023 levels. Category A and C premiums declined, while motorcycle premiums rose.

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The first certificate of entitlement (COE) tender exercise of 2025 saw sharp increases in premiums for larger cars and the Open category, reaching their highest levels in 13 months.

For Category B, which applies to larger and more powerful cars as well as electric vehicles (EVs), the premium surged by 11.5 per cent to S$121,501. This marked a substantial increase from the previous tender’s S$109,000 on 18 December 2024. The last time Category B premiums were higher was in December 2023, when the price peaked at S$130,100.

Similarly, the Open category (Category E) saw a significant increase, with premiums climbing 12.9 per cent from S$108,992 to S$123,000. This represented the largest rise among all five COE categories during the latest exercise.

Category E premiums were last higher in December 2023, when they reached S$133,388. These certificates are versatile and can register any vehicle except motorcycles but are predominantly used for larger cars and EVs.

Category D, designated for motorcycles, also recorded a notable increase. Premiums rose by 7.4 per cent, from S$8,381 in the previous exercise to S$9,001.

Conversely, premiums in other categories showed a downward trend.

Category A, for smaller and less powerful cars and EVs, dropped by 2.4 per cent to S$93,699 from S$96,000. Category C, which covers commercial vehicles, also declined, with premiums falling 2.9 per cent to S$67,891 from S$69,890.

The COE system, a cornerstone of Singapore’s vehicle ownership policy, requires buyers to secure a COE through bidding before they can register a vehicle.

This mechanism controls the number of vehicles on Singapore’s roads and significantly influences the total cost of vehicle ownership. At current premium levels, the COE forms a major portion of the overall cost, especially for more powerful vehicles.

This tender’s results reflect persistent demand for larger cars and EVs, even as smaller cars and commercial vehicles experience a relative easing in premiums. Analysts suggest that the surging prices for categories like B and E could stem from increased interest in EVs and a year-end rush among buyers to secure vehicles.

In a recent parliamentary session, Senior Minister of State for Transport, Dr Amy Khor addressed key issues regarding the entry of new ride-hailing operators and their impact on the private hire car market.

She explained how the supply of private hire cars and fares are primarily driven by demand for point-to-point trips, and how competition from new operators offers more choices for both drivers and commuters.

Responding to PAP MP Desmond Choo’s questions on balancing earnings and public transport availability, Amy Khor emphasized that the demand-driven nature of point-to-point services means the sector remains open and competitive. She also clarified that factors like microeconomics and COE quotas, rather than the number of operators, affect COE prices.

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