Category B and E COE prices see slight drop in latest bidding exercise

In the second Certificate of Entitlement (COE) bidding exercise for July 2024, premiums for Categories B and E saw slight drops, in contrast with the other categories which saw prices go up.

Cat A COEs, which are used for cars with internal combustion engines (ICEs) of up to 1,600cc in capacity and have a power output of less than 130hp, as well as electric cars with a power output of up to 110kW, went up by $898 to end the bidding exercise at $91,899.

Cat B COEs, which are used for ICE cars that exceed 1,600cc in capacity or have more than 130hp, and electric cars with over 110kW, saw a decline, with premiums going down by $901 to end at $100,000.

Cat C, which are for goods vehicles and buses, saw prices go up by $600 to end the bidding exercise at $70,601.

Cat D, which are reserved for motorcycles, went up by $189 to close at $9,089.

Finally, Cat E, which is open to all vehicles except motorcycles, saw premiums go down by $548 to finish the exercise at $100,341.

A senior executive at a multi-brand dealership who declined to be named noted that most of the car buying demand has now shifted towards Cat A, given the slew of Cat A-eligible electric cars that were launched in recent months attracting buyers away from more expensive Cat B models.

She noted that many Cat A EVs offer almost the same features as Cat B models, and additionally enjoy the benefits of lower road tax as EVs are taxed on their power output. "Cat B cars simply cannot compete in this current situation," she said.

Industry observers expect the gap in pricing between Cat A and B to narrow further, as buyers continue to flock towards the less expensive EVs. The Land Transport Authority (LTA) is expected to announce the COE quota for the next three months soon, but industry players are not expecting major changes to the quota for the forthcoming period.

Here's a summary of the second COE bidding exercise for July 2024:

*PQP, or Prevailing Quota Premium, is the moving average of COE prices in the last three months, and denotes the amount payable in order to renew a car's COE at the end of its tenure.

benjamin.chia@asiaone.com

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