Vehicle buyers will be in for a sizeably smaller supply of Certificates of Entitlement (COEs) for the August-October quota period, in line with a record number of motorists who have extended the lifespan of their old cars this year.

The quota, which is determined largely by the number of cars taken off the road in the preceding three months, will shrink by 16.5% to 4,904 a month for cars. This includes Open category, which can be used for any vehicle except motorcycles but ends up almost exclusively for cars.

The quota for Category A (cars up to 1,600cc and 130bhp) will contract by 25.8% to 2,112 a month. Category B (cars above 1,600cc or 130bhp) will be reduced by 8.6% to 2,083 a month. The Open category shrinks by 5.3% to 709 a month.

The quota for commercial vehicle COEs will contract mostly severely, by 27.3% to 566 pieces a month. Motorcycle buyers will have 1,477 COEs a month, or 17.7% fewer.

Industry observers said weakening consumer sentiment on the back of slower economic growth should mitigate the upward pressure on prices that a small quota typically causes.

Also, with a record number of car buyers keeping their cars beyond 10 years, replacement demand will be lower.