Category B prices fall by $1,400 in latest round of COE bidding

In the first Certificate of Entitlement (COE) bidding exercise for July 2024, premiums for most categories saw only small changes, with the exception of Category B which saw prices fall by $1,433.

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 $112 to end the bidding exercise at $91,001.

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 the largest change across all categories, with premiums falling by $1,433 to end at $100,901.

Cat C, which are for goods vehicles and buses, saw prices go up by $101 to end the bidding exercise at $70,001.

Cat D, which are reserved for motorcycles, went down by $102 to close at $8,900.

Finally, Cat E, which is open to all vehicles except motorcycles, saw premiums go up by $889 to finish the exercise at $100,889.

According to industry sources, the recent introduction of Cat A-eligible versions of electric cars like Tesla Model 3 and BYD Seal have shifted demand away from Cat B, contributing to the larger fall in the latter category this time round.

Sabrina Sng, a managing director who oversees insurance and car brands Lotus and Polestar at dealership group Wearnes Automotive, said, "The number of bids received is usually an indicator of demand, and we can see that the bids received in Cat A remained largely the same as the last round of bidding."

However, she pointed out that the number of bids in Cat B dropped significantly, with just 896 bids received. That is the lowest number of bids in that category since January, and Cat B has subsequently received an average of around 1,000 bids for each round so far this year.

Industry observers expect prices to rebound in the next round of bidding, however, partly due to the slew of new models being launched recently such as the Audi Q4 e-tron and Hyundai Santa Fe. The first units of these Cat B-eligible models are expected to be registered in the coming months, and premiums are expected to rise in tandem.

Here's a summary of the first 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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