Singapore car buyers face new peak prices as all COE categories climb sharply

Singapore’s Certificate of Entitlement (COE) premiums hit new highs in the latest bidding exercise, with Category A cars soaring past S$119,000 in a record-breaking surge.

Category A Reaches Historic Peak

The September 17 tender saw Category A COEs — for smaller, mainstream cars with engines up to 1,600cc or 97kW of power — close at S$119,003 (US$93,171). This marks a 10.3 per cent increase from the previous record of S$107,889 set just two weeks earlier. For electric vehicles (EVs), Category A applies to those with up to 110kW of power.

Larger Cars and Open Category Also Rise

Category B COEs, covering larger and more powerful cars above 1,600cc or 97kW, climbed 7.4 per cent to S$136,890. While this is a new high for 2025, it remains below the all-time record of S$150,001 set in October 2023.
Meanwhile, the open Category E — which can be applied to any vehicle type except motorcycles — surged 9.9 per cent to S$140,502, a new yearly peak though still shy of its record of S$158,004.

Commercial Vehicles and Motorcycles Edge Higher

Premiums for commercial vehicles in Category C rose modestly by 1.3 per cent to S$72,501, while motorcycle premiums under Category D increased 1.2 per cent to S$9,209.

Demand Outpaces Quota

This round of bidding attracted 5,364 bids for just 3,135 available COEs, underscoring the intense demand driving premiums higher across all categories.

Policy Shifts and Market Outlook

The surge comes after the government’s announcement on September 8 that electric vehicle rebates will shrink from 2026, though incentives for lower-emission vehicles will continue. Authorities warned then that a short-term spike in COE prices was likely as the market adjusted.

The latest COE spike reinforces Singapore’s vehicle affordability challenges, with record-setting premiums reshaping car ownership decisions. For Indonesians and Singaporeans alike, the escalating costs reflect broader pressures in urban mobility policy, regional EV adoption, and the balance between sustainability incentives and consumer demand.

Sources: CNA (2025) , The Business Times (2025)

Keywords: COE Record, Category A Cars, Singapore Vehicles, COE Bidding, Car Prices