IN THE results of September’s first round of Certificate of Entitlement (COE) bidding on Wednesday (Sep 4), premiums for all types of vehicles rose, with the mainstream passenger car and motorcycle categories posting the largest increases.
The price for Category A, for mainstream cars, rose 2.8 per cent or S$2,590 to S$96,490.
The Category A COE applies to mainstream cars with engines of up to 1,600 cubic centimetres (cc) in capacity or with up to 97 kilowatts (kW) of power, or for electric vehicles (EVs) with up to 110 kW of power.
Category D, used to register motorcycles, increased by 5.3 per cent, or S$491, to S$9,801.
The premium for Category B, applicable to larger, more powerful cars, rose 0.4 per cent or S$411 to S$106,300.
Category B is for cars with engines of more than 1,600 cc in capacity or that have more than 97 kW, or for EVs with more than 110 kW.
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Prices for Category C, applicable to commercial vehicles and buses, increased 2.2 per cent or S$1,601 to S$74,001.
Category E, the open category which can be used to register any type of motor vehicle except for motorcycles, rose 0.8 per cent or S$900 to S$106,901.
Weak sentiment, tight market
Car dealers told The Business Times that market sentiment is weak, but that a number of new brands and model launches this year meant there was more competition for what is still a relatively small COE quota.
Ron Lim, head of sales and marketing for Nissan importer Tan Chong Motor, said: “For the car market overall, I think sentiment is not that strong, especially if we look at the stock market and other indicators. But I think now there are more players on the car market than ever. Even if there are less sales for the taking, there is more competition.”
In 2024, a number of Chinese brands launched in Singapore, including Chery Omoda, GAC Aion, Smart, Skyworth, Xpeng and Zeekr. Existing brands have also launched Category A EV models that have drawn interest, including BYD, Hyundai and Tesla.
Sabrina Sng, managing director for Lotus, Polestar and Insurance at dealership group Wearnes Automotive, said: “At this point, the COE quota is so small that any change could cause a price hike. All you need is one new model, or a successful roadshow, and sell 50 to 100 cars, and it will spike demand.”
Both Lim and Sng pointed out that Category A rose and Category B remained almost flat, without the number of bids increasing.
The number of bids received can be indicative of demand for cars in that category.
The bids received for Category A were almost the same as August’s second round, dropping just six bids or 0.5 per cent to 1,308, while bids received for Category B fell 6.2 per cent to 924.
