Premiums across all COE categories went up in February's second round of bidding exercise, with Cat A clocking the strongest hike of more than $5,000. Experts in the field, including The Business Times, have predicted a hike of between $3,000 to $5,000 in the small car category.

They have attributed it to the widened appeal of smaller cars with the introduction of various luxury models, such as the Audi A3 sedan and Mercedes-Benz A180, B180 and CLA180.

Adding to ensemble are European marques such as Citroen and Volvo, who have also unveiled a range of diesel models that will fit into the Cat A category.

Category A premiums - for cars up to 1,600cc in engine displacement and a power output no higher than 130bhp - ended at $77,201 from $71,564, almost eight percent up from the previous tender.

Premiums for Category B, for cars larger than 1,600cc in engine displacement or power output of more than 130bhp, ended at $78,604 - a hike of $3,304 or 4.3 percent increase.

Likewise, premiums for the open category went up and ended at $79,000 - a 2.6 percent hike from $77,003 in the last bidding tender.