Cat A premiums fall while Cat B and E increase slightly

In the second round of COE bidding in October, Cat A premiums fell, while Cat B and E premiums increased ever so slightly.

Cat A premiums fell by slightly more than 10%

Premiums for Cat A, for cars up to 1,600cc in engine capacity and with an output of no more than 130bhp, dropped by $2,901 (10.19%) and ended at $25,556.

Premiums for Cat B, larger cars with more than 130bhp or engine displacements larger than 1,600cc, increased by $1 (0.003%) and ended at $31,302.

In Cat E, the open category, premiums went up by $348 (1.07%), with premiums closing at $32,900.

The 10% decrease in premiums for Cat A can be attributed to the notable 12% drop in the number of bids received. It continues the month-on-month trend of fewer bids each exercise since the spike in bids in July, after Cat A premiums fell to a low of $25,000. Across the board, the number of bids remained relatively low in relation to the available quota, which indicates that drivers are not buying cars at the moment.

However, this will likely change in the coming weeks. With the launch of models like the Lexus ES, as well as the upcoming Cars@Expo on 23 October, it is likely that COE premiums will increase in the next bidding exercise.