COE prices rise in all categories in first bidding of September 2024

In the first Certificate of Entitlement (COE) bidding exercise of September 2024, premiums increased across all categories, with the largest rise coming in Category A.

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, saw the largest increase in this round, going up by $2,590 to end the bidding exercise at $96,940.

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, increased by a smaller amount, with premiums going up by $411 to end at $106,300.

Cat C, which are for goods vehicles and buses, saw prices increase by $1,601 to end the bidding exercise at $74,001.

Cat D, which are reserved for motorcycles, went up by $491 to close at $9,801.

Finally, Cat E, which is open to all vehicles except motorcycles, saw premiums go up by $900 to finish the exercise at $106,901.

A senior manager at a multi-brand dealership franchise, who declined to be named, said that the Cat A segment is now overcrowded with models, which has contributed to the upward pressure on premiums in that category.

She said, "It's not just the mainstream brands who are competing in Cat A now. There are also luxury brands like BMW and Mercedes-Benz with Cat A cars, as well as many new Cat A electric cars that have been launched this year."

A notable example is BYD, which sold 518 cars in July alone, the majority of which are Cat A electric models. This constitutes over a quarter of the quota of COEs available each month, and has contributed towards helping BYD maintain its position at the top of the sales charts here.

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Observers expect COE premiums to remain high in the wake of such strong sustained demand, especially with the upcoming Car Expo event in October where several car brands are expected to offer deals in a bid to boost their sales figures for the year. Dealers would be bidding and stocking up COEs in the lead up to the event to enable them to offer immediate registration for cars sold at the Car Expo, and prices are unlikely to fall too much from their current levels.

Here's a summary of the first COE bidding exercise for September 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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